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JPMorgan Chase CEO Jamie Dimon said on Tuesday that the U.S. is becoming more like Europe in terms of defense procurement, and it’s holding the country back.
Dimon spoke at the Hill & Valley Forum, which is an annual meeting that brings together policymakers, defense leaders, tech builders and investors to discuss national security, emerging technology and U.S. competitiveness.
He said he was “deeply frustrated” by what he sees as excessive bureaucracy in the defense procurement process at the Department of War that inhibits its ability to respond quickly and adapt during a conflict.
“We’ve become like Europe, we’re unable to move and change – change budgeting, change procurement. You know, let people do what they need to do,” Dimon said.
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Dimon added that the bureaucracy’s rules and compliance processes as well as Congress’ involvement create barriers to the ability of defense contractors to deliver on time and on budget.
He added that the defense industrial base and policymakers need to be more adaptable as he sees a need to increase defense spending given threats around the world.
“Of course, you also know that there’s going to be a lot more spent on the military, which we really need to do,” he said. “We just want to be part of helping their supply chain.”
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Dimon added that he thinks the involvement of more private companies in the defense industrial base could foster more rapid development and deployment of new technologies. Some private companies like Anduril and SpaceX are emerging as significant defense contractors in their areas of expertise.
As the competition between the U.S. and China intensifies and the threat of conflict over Taiwan grows, Dimon said that the dependencies that the U.S. government and American corporations developed for components from China were harmful over the long-term.
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However, that experience could be informative for the U.S. if a conflict with China ever arises, as it could attempt to emulate aspects of what China has done in terms of critical industries.
“We should acknowledge [China has] done some things magnificently well,” Dimon said, noting the country’s manufacturing of cars, drones, ships and batteries. “We should look at our own shortcomings and then be prepared, if they ever become an adversary, to face off against them.”
He added that winning the wars in Ukraine and Iran would be “very helpful” for the U.S. approach to dealing with China.
Reuters contributed to this report.
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