Dutch Admiral Rob Bauer, NATO’s military committee chair, warned Monday that businesses must prepare for wartime scenarios by restructuring their production and supply chains to counter potential pressure from Russia and China.
Speaking in Brussels, Bauer emphasized that effective deterrence requires guaranteed delivery of crucial services and goods under any circumstances. He pointed to recent sabotage incidents and Europe’s energy challenges with Russia’s Gazprom as evidence that commercial agreements with Russian firms effectively constitute deals with President Putin himself.
The Dutch admiral highlighted dangerous dependencies on China, which controls 90% of rare earth material processing and 60% of production. China also dominates the supply chain for essential medical ingredients, including those for sedatives, antibiotics, and blood pressure medications.
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“We are naive if we think the Communist Party will never use that power,” Bauer cautioned. “Business leaders in Europe and America need to realise that the commercial decisions they make have strategic consequences for the security of their nation.”
Bauer stressed that deterrence extends beyond military capability, encompassing all instruments that could be deployed in conflict. This includes Chinese-owned infrastructure and goods, where dealing with Chinese companies effectively means dealing with President Xi.
“Because while it may be the military who wins battles, it’s the economies that win wars,” Bauer added.
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