Rob Bauer, Chairman of the NATO Military Committee. Photo: Profimedia
On Monday, the Chairman of the NATO Military Committee, Dutch Admiral Rob Bauer, called on companies to adapt their production and logistics processes to the conditions of a possible military conflict. He stressed the importance of reducing dependence on countries that could use economic blackmail, including Russia and China. This was reported by Reuters.
The admiral said that in order to implement NATO’s new defence plans, the allies will have to increase defence spending to 3% of GDP, which is significantly higher than the current target of 2%.
“The overall need for the new plans is much closer to 3% than to 2% of GDP,” Bauer said at the meeting in Brussels.
He also noted that the new Donald Trump administration in the United States is likely to initiate a more active discussion on increasing European and Canadian financial contributions to NATO defence.
Systemic threat from Russia and China
In his speech at the European Policy Centre, Bauer stressed that strategic deterrence goes far beyond military power alone.
“If we ensure the uninterrupted delivery of all critical goods and services under all circumstances, this will be a key element of our deterrence strategy,” he said.
Bauer drew attention to the increase in acts of sabotage by Russia and its use of energy resources as a blackmail tool.
“We thought we had an agreement with Gazprom, but in fact it is controlled by Mr Putin,” he added.
The admiral also expressed concern about the West’s economic dependence on China. According to him, China controls 60% of the world’s production of rare earth materials and 90% of their processing. Also, a significant portion of chemical ingredients for medicines, such as antibiotics, sedatives, and blood pressure lowering drugs, come from China.
“It would be naïve to think that the Chinese Communist Party will not take advantage of this,” Bauer said.
The role of business in the war
Bauer urged businesses to adapt their production and supply chains to the conditions of a possible military conflict.
“Companies should be prepared for a war scenario, because although armies win battles, it is economies that win wars,” he stressed.
He concluded that business decisions have strategic implications for national security, and business leaders in Europe and the United States need to realise this.
