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US-China relations
China

Final Pentagon budget bill features Taiwan, Aukus and counters to China’s influence

  • The US$872.4 billion ‘must-pass’ National Defence Authorisation Act includes Taipei cybersecurity deal and prioritises Aukus arms sales
  • The bill is headed for votes in the House and Senate before US President Joe Biden signs it into law

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The US Congress has released its final version of the US$872.4 billion National Defence Authorisation Act, the Pentagon budget bill. Photo: Shutterstock
Bochen Hanin Washington
The US Congress released its final version of the National Defence Authorisation Act for fiscal year 2024 late on Wednesday, clearing the sweeping legislation – which strengthens Taiwan training, the Aukus alliance and countering Chinese influence – for full votes in the Senate and House of Representatives.
As with previous years, the US$872.4 billion bicameral compromise leaves out some of the more controversial provisions from the draft versions, like a measure that restricts outbound investment to China. It is expected to pass both chambers and head to President Joe Biden for signing into law later this month.

The legislation, which establishes the top-line budget and directs policy for the Pentagon for the coming financial year, is a “must-pass” bill because its enactment is required for members of the military to receive their pay and benefits on time. As a result, provisions not strictly tied to defence often make it into the legislation.

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With speculation rife that Chinese President Xi Jinping has ordered People’s Liberation Army troops to be ready to take Taiwan by force by 2027, the self-ruled island was a feature of the bill.
Taiwan soldiers posing after a preparedness enhancement drill in Kaohsiung City. Photo: AP
Taiwan soldiers posing after a preparedness enhancement drill in Kaohsiung City. Photo: AP

For the first time, the defence policy bill calls for cybersecurity cooperation with Taiwan to “defend military networks, infrastructure and systems”.

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It also calls for the defence secretary to establish a programme of training, advising, and institutional capacity building with Taiwanese military forces – in line with a comprehensive effort in last year’s NDAA to boost security cooperation with Taiwan.
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