China reliance and tariff wars emerge as top risks for the global defence industry: report

A new report by UK consultancy WTW identifies reliance on China and ongoing tariff wars as top emerging risks for the global defense industry. The report, based on interviews with international industry executives, highlights the defense sector's vulnerability due to its dependence on Chinese materials, particularly rare earths and electronics. The ongoing tariff dispute between China and the United States is disrupting supply chains and increasing costs for the defense industry. The report raises concerns that China may retaliate against geopolitical measures by withholding critical minerals and supplies, which would significantly impact the defense sector. The report, titled "Managing the new economic risks in the defence sector," was released Wednesday by Oxford Analytica and Willis, an arm of WTW.