The Blubber

A senior NATO official has urged businesses to prepare for wartime scenarios by adjusting their production and supply chains to reduce vulnerabilities to coercion from countries like Russia and China.

Speaking in Brussels on Monday, Dutch Admiral Rob Bauer, chair of NATO’s military committee, emphasized the importance of resilience in the face of potential disruptions. "Ensuring that all crucial services and goods can be delivered under any circumstances is a key element of deterrence," Bauer said at an event hosted by the European Policy Centre think tank.

Deterrence Beyond Military Strength

Bauer highlighted that deterrence extends well beyond military capabilities, encompassing all tools available in times of conflict. "We’re seeing this with the increasing number of sabotage acts and Europe’s experiences with energy supply," he said.

He pointed to the continent’s reliance on Russian gas, recalling how European nations believed they had agreements with Gazprom, only to realize they were essentially dealing with Russian President Vladimir Putin. Similarly, Bauer noted that infrastructure and goods owned by Chinese companies are effectively tied to the decisions of Chinese President Xi Jinping.

Dependence on Chinese Supplies

Bauer outlined the West's reliance on China for critical materials and pharmaceuticals, noting that 60% of rare earth materials are produced there, with 90% processed within the country. Additionally, essential chemical ingredients for sedatives, antibiotics, anti-inflammatories, and blood pressure medications also originate from China.

"It’s naive to think the Communist Party would never leverage that power," Bauer warned. "Business leaders in Europe and America must recognize that their commercial choices have strategic implications for their nations' security."

Adapting to Wartime Realities

Bauer called on businesses to proactively adapt their operations for potential wartime conditions. "Companies need to restructure their production and supply lines to be more resilient," he said. "While the military may win battles, it is economies that win wars."