Luckey Predicts US-China Arms Deal, Strong Future Ties

US defence technology entrepreneur Palmer Luckey has made a bold prediction about future US-China relations, suggesting that America will forge a strong international friendship with a reformed China and even sell weapons to the nation. The founder of Anduril Industries shared these insights during a Tokyo Talk interview conducted in Akihabara by the US embassy in Tokyo and consulates in Japan on 22 December 2025.

Luckey emphasised the importance of deterring violence through technological and political strategies, stating, “What the United States is doing and I think what Japan is doing is trying to build a set of technologies, political positions and movements that deter violence.” He added, “The idea is that if the United States, Japan, and the rest of our allies and partners in the region, if we do the right things, we can have (People’s Republic of China leader) Xi Jinping wake up tomorrow and say, ‘Not today. I’m not going to make the move today.’ We need to make sure that he keeps saying that tomorrow, the next day, the next year and next decade.”

Luckey’s vision extends to a future where China is integrated into the international community. “China is opening up Pandora’s box. They don’t just believe that they deserve to have Taiwan. They want the Philippines. They want Korea. They want Japan. They want Vietnam. It’s important that we stop that in its tracks and hopefully make them a part of the international community on some timeline (in the future) … I’m hoping that someday we’re able to sell weapons to China. I know that sounds crazy when you look at the current geopolitical position but look where we’re standing (in Tokyo). We fought a world war with Japan. Inside of one generation; there are people in Japan and the United States still living who fought each other to the death. Now they’re one of our strongest trade partners, military partners and cultural partners. I don’t think there’s any reason that you can’t imagine the same thing happening for a reformed China. And if they can do that, I hope that we can be really great friends with them.”

This optimistic outlook aligns with Anduril Industries’ recent expansion into Japan, where the company opened an official office in Tokyo late last year. The move is part of a broader defensive strategy outlined by the Japanese government, with Prime Minister Sanae Takaichi indicating intentions for a significant modernisation of Japan’s defence posture, culminating in a new five-year plan beginning in 2027.

Luckey highlighted the strategic importance of this expansion, noting, “Anduril is a defence products company that uses its own money to develop defence products and defence technology that is used to protect America, America’s allies and America’s partners.” He explained, “We’re opening up an engineering and manufacturing office here in Japan because we’re going to be doing a lot more work in Japan, not just using Japanese components, but building weapon systems in Japan. The United States and Japan have a very, very close relationship, not just culturally or economically, but also militarily. It’s really important that the United States and Japan continue to share military technology and that we use a lot of the same weapon systems.”

Luckey’s vision of a future where superpowers coexist peacefully and refrain from expansionist military actions is ambitious but rooted in historical precedent. He drew parallels with Japan, stating, “We fought a world war with Japan. Inside of one generation; there are people in Japan and the United States still living who fought each other to the death. Now they’re one of our strongest trade partners, military partners and cultural partners. I don’t think there’s any reason that you can’t imagine the same thing happening for a reformed China.”

Chinese President Xi Jinping has also spoken of the country’s future aspirations during the 2026 New Year message, published by the People’s Republic of China Ministry of Foreign Affairs on 31 December 2025. He emphasised the importance of high-quality development, deepening reform and opening up, and maintaining long-term prosperity and stability. Xi Jinping stated, “The year 2026 marks the beginning of the 15th Five-Year Plan. A successful venture should start with a good plan and with clear goals set. We should focus on our goals and tasks, boost confidence, and build momentum to press ahead.”

As geopolitical dynamics continue to evolve, Luckey’s predictions and strategic initiatives could shape the future of international defence partnerships and global security frameworks. The potential for a reformed China to become a key ally and trading partner offers a compelling vision of a more cooperative international order.

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