Rising Defense Spending Fuels Shift Toward Global War Economies
States are increasingly channeling resources into defence, using economic tools like sanctions and export controls to pursue geopolitical goals.
The article argues that growing defence budgets are prompting a broader adoption of war-economy practices. Governments are leveraging sanctions, foreign-investment limits, semiconductor export bans, tariff wars and currency battles as instruments of economic statecraft. Washington relies on the dollar and its financial system, Beijing exploits rare-earth dependencies, and Europe is reshaping its supply chains for strategic resilience.
Why it matters
Understanding how economic policies are weaponised reveals the growing intertwining of trade and security worldwide.
In this story
defence spendingwar economysanctionsexport controlseconomic statecraftdollarrare earthsstrategic supply
