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How China’s naval advancements are pushing the US Navy to innovate

21st January 2026 - 08:56 GMT | by Flavia Camargos Pereira in Kansas City, Missouri

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USN Stiletto programme demonstrator. (Photo: US Navy)

The US Navy is set to invest $30 billion in artificial intelligence, cyber, space and autonomy research and development efforts in FY2026 as the force rethinks how it fights in light of China’s naval rise.

The rapid improvement of Chinese naval capabilities and the growth of Beijing’s maritime industry have been pressing the US Navy (USN) towards investing in innovation by acquiring and developing a host of new capabilities while upgrading its in-service inventory.

In FY2026, the branch allocated nearly $30 billion to fund basic and applied scientific research and development, as well as test and evaluation efforts related to new, cutting-edge artificial intelligence (AI), cyber, space and autonomy technologies.

Speaking last week at the 2026 Surface Navy Association National Symposium, John C Phelan, the Secretary of the Navy, noted that the US’s adversaries “are quickly

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Flavia Camargos Pereira

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Flavia Camargos Pereira


Flavia Camargos Pereira is a North America editor at Shephard Media. She joined the company …

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