Germany Initiates Strategic Overhaul to Decouple Defense Sector from Chinese and U.S. Supply Chains
BERLIN — Germany is undertaking a significant strategic pivot to insulate its growing defense industry from foreign dependencies, launching a comprehensive review of supply chains to reduce reliance on external powers, specifically China and the United States. As Berlin ramps up military spending to historic levels, government officials have begun probing the depth of the nation’s industrial exposure to Chinese suppliers, while simultaneously initiating a reassessment of its longstanding reliance on American defense partners.
The initiative comes amid a broader transformation of German security policy, often referred to as the Zeitenwende, or turning point. As the government injects billions into modernizing the Bundeswehr, policymakers are increasingly concerned that the country’s defense capabilities rest on fragile global logistics that could be disrupted by geopolitical friction. According to reports surfacing from Berlin, officials are particularly focused on identifying and mitigating vulnerabilities regarding “gunpowder and electrical components.”
Dependence on Beijing for critical raw materials has emerged as a primary concern. The production of ammunition and advanced military electronics often requires specific precursors—such as processed cotton for nitrocellulose used in propellants or rare earth elements for circuitry—that are heavily dominated by Chinese markets. German officials fear that in the event of heightened tensions or trade disputes, a restriction on these exports could effectively paralyze European ammunition production lines just as demand across the continent creates a backlog of orders.
However, the strategic review extends beyond potential adversaries. In a notable shift, Germany is also reevaluating its deep industrial integration with the United States. While the U.S. remains Germany’s most important NATO ally, there is a growing consensus within Berlin’s security architecture that over-reliance on American hardware and software creates its own set of strategic risks. These concerns stem from fears of potential shifts in U.S. foreign policy, export control restrictions, or “America First” manufacturing priorities that could delay vital deliveries to European partners during crises.
The dual approach signals a push toward greater “strategic autonomy,” a concept championed by European leaders who argue that the continent must possess the industrial capacity to defend itself without waiting for external support. By vetting supply chains for foreign choke points, Berlin aims to encourage domestic and intra-European production of critical components. This includes securing alternative sources for propellants and fostering a localized semiconductor ecosystem capable of supporting next-generation military hardware.
Industry analysts suggest that this policy shift could lead to stricter procurement rules for German defense contractors, requiring them to prove supply chain resilience and reduced foreign exposure before winning government contracts. As Germany continues to scale up its defense budget, the focus has clearly shifted from merely purchasing equipment to ensuring that the industrial base producing it is secure, sovereign, and immune to external geopolitical leverage.
