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Weaponization Of Interdependence

Weaponization of Interdependence: what does it mean for European defence capital allocation and valuations?

In the international relations of the twenty-first century, economic and technological interdependence is no longer interpreted solely as a guarantee of stability and cooperation, but increasingly as an instrument…

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Platform publication · DFM Analysis report · 2026-07-01

In the international relations of the twenty-first century, economic and technological interdependence is no longer interpreted solely as a guarantee of stability and cooperation, but increasingly as an instrument of power and coercion. The concept of the “weaponization of interdependence” refers to the transformation of economic, financial, and technological ties into strategic levers to be deployed against adversaries or rivals. Whereas globalization was once believed to produce a pacifying effect through the spread of trade and investment, today those very global connections are revealed as vulnerabilities exploitable by state and non-state actors.

The ability to restrict access to markets, resources, technologies, or infrastructures allows effective pressure to be applied without resorting directly to military force. This evolution marks a radical change in the logic of power, redefining the boundaries between economy and strategy and compelling states to rethink their posture in a context of mounting systemic competition. The strategic use of interdependence rests on a paradox: the more globally connected actors are, the more vulnerable they become.

Global value chains, designed to maximize production efficiency, create critical nodes through which almost all economic or technological flows pass. Control over these “chokepoints” enables those who dominate them to influence the decisions of others. A telling example is advanced semiconductors: production concentrated in a few global hubs makes it possible for the United States, Japan, or the Netherlands to condition the technological capabilities of China or other emerging powers.

Similarly, international financial networks, dominated by infrastructures such as SWIFT or by the role of the dollar as a reserve currency, allow Washington to impose sanctions that are both effective and difficult to circumvent. Interdependence thus becomes a silent yet powerful weapon, capable of striking an adversary’s economy and society without the need to mobilize troops or missiles. Economic sanctions are the most visible application of this logic.

Key takeaways

  • Global value chains, designed to maximize production efficiency, create critical nodes through which almost all economic or technological flows pass.
  • Similarly, international financial networks, dominated by infrastructures such as SWIFT or by the role of the dollar as a reserve currency…
  • The strategic use of interdependence rests on a paradox: the more globally connected actors are, the more vulnerable they become.

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Weaponization Of Interdependence

Type DFM Analysis report
Published 2026-07-01 (Platform publication)
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FAQ

What is Weaponization Of Interdependence?

The ability to restrict access to markets, resources, technologies, or infrastructures allows effective pressure to be applied without resorting directly to military force.

Why does Weaponization Of Interdependence matter for European defence?

This evolution marks a radical change in the logic of power, redefining the boundaries between economy and strategy and compelling states to rethink their posture in a context of mounting systemic competition.

Topics Strategic Autonomy #strategic-autonomy

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