Raytheon CEO wishes he could help out, "decouple" from China but it's just too hard so...no

(Sebastian Apel/U.S. Department of Defense, via AP)

It turns out we are so wedded to the Chinese, that our own defense sector, while they may be able to “de-risk” – the “it” word of the moment – absolutely find it well-nigh impossible to “de-couple,” in the Gwyneth Paltrow sense.

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So we are being told as of yesterday. It figures – the Raytheon CEO with the word would be in Paris not Poughkeepsie – but he felt duty bound to disabuse us of those quaint notions we had about bringing American interests, especially security-wise, home.

Handsomely, he left the door open for other defense contractors to walk through who agree with him.

Western manufacturers will be able to de-risk their operations in China but will find it impossible to cut ties completely with the country, according to the head of one of the US’s largest aerospace and defence companies.

Greg Hayes, chief executive of Raytheon, said the company had “several thousand suppliers in China and decoupling . . . is impossible”.

“We can de-risk but not decouple,” Hayes told the Financial Times in an interview, adding that he believed this to be the case “for everybody”

Realistically, no one expected any of these companies to start packing boxes and pulling out of China overnight. But there is an expectation that they see the writing on the wall as far as U.S. national security and foreign policy goes, even if they haven’t already started the adjustment from corporate necessity on their own.

I can’t decide if he’s laying out a marker for future negotiations or telling Congress to buzz off. It’s sure caused some hackles to rise in the mil blogger community.

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Raytheon’s also in the middle of a rebranding effort – their commercial side of the business is now going to be known as RTX (whatever) – so they believe it will eventually be easier for them to point to defense pipeline Raytheon products and say, “Look! No Chinese hands!”

Really doesn’t erase the bad taste in people’s mouths, though.

But it’s all about the buckarooskis. As always.

…“Think about the $500bn of trade that goes from China to the US every year. More than 95 per cent of rare earth materials or metals come from, or are processed in, China. There is no alternative,” said Hayes.

If we had to pull out of China, it would take us many many years to re-establish that capability either domestically or in other friendly countries.”

Call a waahmbulance, dude.

Exactly. Get on the stick. Yes, China has us by the short hairs, and we’ve got a Chinese paid puppet in the White House, but that doesn’t mean American companies can’t – and aren’t already – looking to reallocate resources and manufacturing capacity to friendlier environments.

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If we’d quit telling the Africans to use solar panels for lights they don’t have and withhold fertilizer for fields they can’t plow because we won’t allow them fuel for tractors, maybe they’d be more inclined to work with us for minerals instead of the Chinese. It’s a thought.

Tell Janet Yellen to stay out of their huts, and send a Kansas or Indiana farmer instead with the tools to set them up right and quit holding them hostage to renewables and Green schemes for aid.

We need to get our own house in order, too, if we ever hope to see manufacturing coming back.

Raytheon has a decision to make.

Exactly.

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