The INSIDER daily digest -- May 3, 2019

By Marjorie Censer / May 3, 2019 at 1:33 PM

Today's INSIDER begins with news on the Pentagon's annual review of China's military and includes the latest on the THAAD and F-35 programs.

China announced a 2018 defense budget of $176 billion, but the Pentagon says it is clear Beijing spent more as published figures omit several categories of expenditure such as research and development and foreign weapons procurement:

China's military spending pegged at $200B; industrial espionage continues

China spent about $200 billion on defense in 2018 and will likely grow that by an average of 6% through 2022, according to the Pentagon's annual report on Chinese military strength.

Pentagon warns companies of ‘trade-offs’ in doing business with China

The Pentagon remains concerned about China’s pursuit of new technologies that could be put to military use, warning U.S. companies that doing business with Beijing could bring risks in terms of cyber espionage and limited opportunities for future work with the U.S. government.

Gen. James McConville, Army vice chief of staff, told Congress this week a new study directed by the 2019 Missile Defense Review, due to be complete next month, will consider whether the service needs more THAAD batteries:

McConville: Without additional funding, THAAD could squeeze Army modernization

A statutory requirement for the Missile Defense Agency to transfer the Terminal High Altitude Area Defense program to the Army within a year could impinge on the Army's high-priority modernization plans unless the Defense Department increases the service's overall budget allocation in fiscal year 2021, according to a senior service official.

Vice Adm. Mat Winter told reporters this week an Office of the Secretary of Defense per-flying-hour price target for the F-35A is a “stretch goal”; prime contractor Lockheed Martin thinks they can meet it:

Pentagon officials: F-35A $25K flying hour cost target not achievable by 2025

The head of the Pentagon's cost assessment office and the F-35 program executive officer said today the program isn't likely to meet an Office of the Secretary of Defense target to reduce the A-model jet's cost per flying hour to $25,000 by fiscal year 2025.

Lockheed says Pentagon's $25K flying-hour target is reachable by 2025

F-35 prime contractor Lockheed Martin said this week the Pentagon's goal to reach a $25,000 cost per flying hour for the A variant by 2025 is achievable and fits into its broader strategy to reduce the fifth-generation aircraft's sustainment costs.

Army Futures Command chief Gen. Mike Murray appeared before the House Armed Services tactical air and land forces subcommittee this week:

Murray: Army to increase rotational deployments to Europe

The Army is seeking to increase its presence in Europe to deter Russian aggression, according to the head of Army Futures Command.

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