China’s Pacific Reach to Spur U.S. Spending on Anti-Sub Warfare

China’s naval expansion in the eastern Pacific is poised to accelerate U.S. investment in anti- submarine warfare equipment, according to Ultra Electronics Holdings Plc, the world’s biggest supplier of sonar detectors.

The Pentagon and its allies will focus spending on devices able to spot subs even in the noisiest shipping lanes as China’s naval build-up heightens tensions with neighboring nations and underscores the need to secure commercial shipping flows, Ultra Chief Executive Officer Rakesh Sharma said in an interview.

“Even with global defense cuts the sonar business is expanding,” Sharma said. “Mineral supplies and commodities, for example, are all transported by sea, so it’s becoming imperative to protect trade routes. Australia, Singapore, Malaysia and the Philippines, as well as the U.S., will all start investing in anti-submarine warfare as the possible threat from China grows.”

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