Defense & Aerospace Report

Defense & Aerospace Report Podcast [Washington Roundtable Oct 17, ’25]

Oct 17, 2025
Dr. Patrick Cronin, an Asia-Pacific security expert, discusses the complexities of U.S.-China relations and APEC's significance. Dr. Dov Zakheim, former Pentagon comptroller, shares insights on the implications of the ongoing government shutdown and funding strategies. Michael Herson highlights congressional dynamics and the potential for sanctions against Russia, while Jim Townsend analyzes NATO's response to Ukraine-Russia tensions. The group also debates the ramifications of President Trump's foreign policy moves on European alliances and regional stability.
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INSIGHT

Shutdown Driven By Health-Care Standoff

  • The shutdown centers on ACA tax-credit disputes and bipartisan pressure could force piecemeal fixes.
  • Expect rolling openings and closures unless leadership negotiates a broader compromise soon.
ADVICE

Replenish Moved Appropriations Quickly

  • Do legislate backup funding if the White House reallocates R&D or procurement money during a shutdown.
  • Replace moved funds promptly to protect contractors and long-term programs.
INSIGHT

Rare Earths As Strategic Leverage

  • China is using processed rare earths as a leverage point to pressure tariff concessions.
  • Expect recurring fragile truces and a longer-term trend toward de-risking or partial decoupling.
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