Germany’s perspective to reduce military dependence on China and America

According to Isna, the “Bloomberg” website, quoting informed sources, reported that German security and economic authorities have been secretly investigating the interactions of German military and defense companies with China for several months, and recently they have extended this investigation to transactions with the United States as well.

In explaining Berlin’s dependence on China, this American media states that this dependence was mainly in the fields of gunpowder production, electronic components and strategic raw materials such as rare earth elements (95% of the needs of German companies are supplied from China).

Also, Germany’s military dependence on America is mainly in the field of fighter repairs, including the F-35 fighter, modern military technologies and advanced software for the Arrow 3 and Patriot air defense systems.

China’s move last April to limit exports of rare earth elements, which are used in the construction of fighter jets, wind turbines and electric cars, raised alarm bells in Berlin. Also, the recent tension with America over Greenland has intensified the concern that Washington can also use the leverage of supplying defense equipment against Germany.

According to this report, the German government is considering a new package of measures to reduce this strategic dependence. Among these measures are the amendment of government debt laws and the financing structure of strategic reserves, the creation of strategic reserves of raw materials, tax incentives and new partnerships with the aim of diversifying supply chains.

In this regard, the German Chancellor and the ruling coalition are considering exempting the “State Fund for Raw Materials” from the strict debt rules. Launched in 2024, the €1 billion fund will invest in mining, processing and recycling projects to create an alternative to Chinese resources.

Experts believe that this fund is too small for complete independence from China, and there is a possibility of its significant strengthening. Berlin’s other strategy in this regard is prioritizing the European supply chain. Berlin plans to use government purchasing power to prioritize defense companies whose supply chains are entirely European. Also, the German authorities have decided to conduct an in-depth investigation into the supply chains of their military and weapons companies. The German Ministry of Defense has asked major arms manufacturers to provide complete information about their supply chain and their dependence on third countries.

Germany, which was known for years as an exporting power with a pacifist approach, entrusted its security to America and the supply of raw materials and sales market to China. But with Donald Trump back in the White House and Beijing using trade leverage, this formula is no longer working, analysts say.

Lars Kleeberg, head of the German Supply Chain Management Association, says: “A country that creates security in times of global tensions should not have any ambiguity regarding the origin and access to its vital raw materials.”

The German Ministry of Defense has declined to make an official comment due to the confidential nature of these investigations, but informed sources told Bloomberg that in Berlin’s view, as the former world order continues to collapse, changing global supply chains is not an option, but a requirement.

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