NDAA 2026 sharpens US hard line on China, expands major Taiwan support

Washington - The 2026 US defence bill significantly intensifies Washington’s tough stance toward China, tightening restrictions on Chinese military-linked companies and expanding political, economic, and military backing for Taiwan.

Congressional leaders on Sunday unveiled the compromise version of the National Defence Authorisation Act (NDAA), which positions Beijing as America’s primary strategic competitor across military, diplomatic, economic, and industrial sectors. The bill will come up for a vote in the House later this week.

One of the most consequential sections strengthens bans on “Chinese military companies in third-party countries.” The legislation broadens the definition of entities connected “directly or indirectly” to China’s People’s Liberation Army, Ministry of State Security, People’s Armed Police, security services, and organisations under the Central Military Commission.
These restrictions now apply even when such companies operate outside China, reflecting growing concerns that Beijing uses overseas subsidiaries and joint ventures to bypass US controls and gain access to sensitive technologies.

Major boost for Taiwan

The NDAA includes some of the strongest Taiwan-focused provisions in recent years.

It establishes the Taiwan Non-Discrimination Act of 2025, instructing the US to “vigorously support” Taiwan’s membership bid at the International Monetary Fund (IMF), should Taipei seek entry.

The bill highlights Taiwan’s status as the world’s 21st-largest economy and stresses that US policies should not be interpreted as endorsing Taiwan’s exclusion from global organizations.

It also compels Washington to support Taiwan’s participation in IMF surveillance processes and ensure opportunities for Taiwanese nationals to work at the Fund—directly challenging decades of Chinese pressure to limit Taiwan’s involvement in international financial bodies.

Expanded defence cooperation

On security, the NDAA broadens the Taiwan Security Cooperation Initiative, adding support for:

medical contingency and trauma care

combat casualty management

additional defence equipment suites

For FY2026, Congress authorizes up to $1 billion specifically for Taiwan’s security requirements.

The bill also directs the Pentagon to establish a joint program with Taiwan to develop and field uncrewed and counter-uncrewed systems, including new asymmetric platforms designed for island defence.
These measures underline US efforts to strengthen Taiwan’s resilience and deterrence capacity against a potential PLA offensive.

Regional strategy against China

The Indo-Pacific posture section reinforces Congress’s view of China as the primary long-term threat.
The Pentagon is ordered to create a detailed five-year plan to enhance multilateral defence partnerships, expand joint military exercises, and increase coordinated maritime operations through the Taiwan Strait and the South China Sea.

Congress also extends the Pacific Deterrence Initiative, funding improvements in forward-deployed forces, air defence networks, prepositioned munitions, and logistics systems intended to counter China’s rapid power projection.

Industrial and diplomatic front

Industrial competition forms another crucial pillar of the NDAA.

The bill establishes the Partnership for Indo-Pacific Industrial Resilience, allowing the Pentagon to develop a robust defence-industrial framework with allies, strengthen supply chains, expand production capacity, and speed up development of advanced technologies—key concerns as China dominates critical materials and manufacturing infrastructure.

Diplomatically, the legislation creates a new Ambassador-at-Large for the Indian Ocean Region, charged with guiding US strategy and directly countering “malign PRC influence” in a region where China is expanding naval logistics, dual-use port projects, and political presence.

Other sections address maritime domain awareness, cybersecurity cooperation with Southeast Asia, limits on PRC-linked entertainment ventures, and new reporting requirements on Chinese global influence operations.

A sweeping blueprint for long-term China strategy

Taken together, the NDAA 2026 represents one of the most comprehensive US legislative efforts to confront China’s growing global reach while bolstering Taiwan across political, economic, and military spheres.
As US–China competition escalates in the Taiwan Strait, South China Sea, and Indian Ocean, the bill outlines a long-term framework for sustained strategic pressure on Beijing and strengthened support for Taipei.

With inputs from IANS