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Costs of War
March 3, 2026
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The Costs of Militarized Rivalry with China: A First Estimate

Paper

According to Jennifer Kavanagh, Senior Fellow & Director of Military Analysis at Defense Priorities, the U.S. has spent at least $3.4 trillion countering China militarily since 2012. This figure, an average of $260 billion a year, is more than total U.S. spending on 20 years of war in Afghanistan ($2.3 trillion). 

This report provides the first estimate of the amount the U.S. has spent competing with China in the military domain over the period between 2012 and 2024. This period follows then-President Barack Obama’s November 2011 announcement of his intention to “pivot” U.S. attention from the Middle East toward Asia. In addition to Department of Defense spending, the analysis also includes relevant expenditures by the intelligence agencies, Department of Homeland Security, Department of Energy, and the State Department. The estimate is a best approximation of total spending focused on military competition with China – and excludes costs associated with economic or technological competition, for example. It also likely represents an undercount of the actual total China-focused military spending due to conservative methodological decisions made throughout the analysis.

Broken down by government agency, the Navy and Marine Corps are responsible for an estimated 33% of the total cost estimate for spending on militarized rivalry with China, followed by Defense Agencies (25%), the Air Force and Space Force (15%) and the Army (14%).

The paper also looks at some of the opportunity costs of this spending: Completely redoing the nation’s air traffic control system ($31.5 billion) and repairing all of the bridges currently rated in poor condition ($319 billion) would comprise about 10 percent of the expense of U.S. military competition with China between 2012-2024. Alternatively, the United States could fund about 85 years of tuition-free college education for all U.S. college goers.

 

 

About the Authors

  • Jennifer Kavanagh

    Jennifer Kavanagh

    Senior Fellow & Director of Military Analysis, Defense Priorities.
    jennifer.kavanagh@defp.org
    Website

    A political scientist by training, Kavanagh has spent her career studying U.S. national security and defense policy. Kavanagh’s research focuses on U.S. military strategy, force structure and defense budgeting, the defense industrial base, and U.S. military deployments and interventions.

    Previously, Kavanagh was a senior fellow in the American Statecraft Program at the Carnegie Endowment for International Peace. She also worked as a senior political scientist at the RAND Corporation, where she led projects for defense and national security clients. She served for three years as director of RAND’s Army Strategy program. Her work has been published in Foreign Affairs, The New York Times, Foreign Policy, Journal of Conflict Resolution, The Washington Quarterly, Lawfare, Los Angeles Times, and War on the Rocks, among other outlets.

    Kavanagh received an AB in Government from Harvard University and a PhD in Political Science and Public Policy from the University of Michigan. She is also a term member of the Council on Foreign Relations and an adjunct professor in the Security Studies Program at Georgetown University.

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The Costs of Militarized Rivalry with China: A First Estimate