Lockheed, Northrop May Gain on China Even as Defense Cuts Loom

Victorious House Republicans are likely to advocate a more muscular approach toward China, offering a potential boost to defense contractors such as Lockheed Martin Corp. and Northrop Grumman Corp. even as Congress comes under pressure to rein in the Pentagon’s budget.

“We have to look at the totality” of China’s efforts, said Representative Randy Forbes, a Virginia Republican who may become head of the House Armed Services readiness subcommittee. Once lawmakers focus on emerging challenges in areas from cyber warfare to aircraft carriers to missiles, they’ll say, “We better be changing our readiness capability.”