Germany Is Trying to Shield Defense Firms From China — and Even the US
> As Germany pushes forward with a trillion euro-expansion of its military, the federal government is starting to worry about defense contractors’ reliance on geopolitical rivals such as China — and even the US.
> For months, officials have been investigating links between German defense firms and China, according to people familiar with the effort. Recently, they also turned their focus to US ties.
> In parallel, officials are working on plans to lessen these connections, even considering easing borrowing restrictions to help finance raw material reserves, the people said, speaking on the condition of anonymity to describe the internal process.
> Officials are also looking to leverage the government’s purchasing power to prioritize defense firms with European supply chains, according to people familiar with the matter.
> The fear is that some manufacturers may be too dependent on China to make materials like gunpowder and electrical components, said the people. The US concerns are more fraught — officials are exploring areas like fighter jet repairs, or the technology behind modern weapons, the people added.
> It’s a turnaround for a country that has long been content as a pacifist export power, leaning on the US for security and China for supplies and sales. But with a hostile Donald Trump in the White House and Beijing weaponizing its trade ties, Germany is realizing that formula won’t work.
> Overhauling the country’s identity is hard, however. Germany is trying to simultaneously boost local manufacturers, while also weaning them off the supply lines that made them successful. It’s trying to balance the need to get billions of euros of new weapons now with the long-term effort to beef up Europe’s anemic defense industry.
> That’s a lot of change for a country that has often resisted it. But it’s necessary if officials want to redesign global supply lines as the old world order crumbles.
https://www.bloomberg.com/news/articles/2026-02-12/germany-is-trying-to-shield-defense-firms-from-china-and-even-the-us #Germany #DefenseIndustry #SupplyChainSecurity #Europe #Geopolitics #China #US #EuropeanSovereignty #MilitaryProcurement #Bundeswehr