Passing the Senate Vote Next Week, Heading to Biden's Desk
[Asia Economy Reporter Yujin Cho] The U.S. House of Representatives has passed next year's security and defense budget bill amounting to 1,132 trillion won, a 10% increase compared to last year.
On the 8th (local time), the House approved the National Defense Authorization Act (NDAA) for the 2023 fiscal year, which includes the security and defense budget, according to the Wall Street Journal (WSJ).
The House passed the NDAA for next year, totaling $857.9 billion (approximately 1,132 trillion won), with 350 votes in favor and 80 against, and sent it to the Senate. This is about a 10% increase from last year's budget ($778 billion).
The bill is expected to complete Senate voting next week and then only awaits the signature of U.S. President Joe Biden.
The bill includes provisions to support Taiwan with up to $10 billion over five years starting next year in the form of loans, up to $2 billion annually, to be used for purchasing U.S.-made weapons in preparation for a possible Chinese military invasion. The U.S. anticipates that China may attempt a military invasion of Taiwan as early as 2027.
To respond to China's economic coercion, a separate task force (TF) led by the White House National Security Council (NSC) will be established, and a coordinator will be appointed.
The bill explicitly states that China is no longer considered a developing country, and mandates that products supplied to the U.S. government must not use Chinese-made semiconductors, with enforcement to begin five years after the law takes effect.
It also includes provisions to maintain the current size of U.S. forces stationed in South Korea at approximately 28,500 personnel and reaffirms the commitment to provide extended deterrence to South Korea by utilizing all U.S. defense capabilities under the mutual defense treaty.
Furthermore, regarding the sea-launched cruise missile with nuclear capability (SLCM-N), the bill requires the Secretary of Defense to submit a report within 270 days of the NDAA enactment to the congressional defense committees. The report must explain the nuclear capabilities of Russia, China, and North Korea, the strategies to deter them, and the countermeasures including the SLCM-N.
Representative Ruben Gallego (Arizona) stated, "This bill contains extensive provisions to respond to the challenges posed by China and Russia," adding, "It also includes billions of dollars in funding to strengthen the relationship between the U.S. and European allies in response to the China-Russia challenge."
Meanwhile, the bill also includes provisions to repeal the U.S. military's COVID-19 vaccine mandate, which the White House and Department of Defense strongly oppose. If the bill passes the Senate in its current form, attention will focus on whether President Biden will exercise his veto power.
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