Editor’s Note
This analysis explores how export controls, once primarily non-proliferation tools, are now being weaponized in strategic competition, using Australia’s experience to highlight the resulting global supply chain disruptions.
The increasing politicization of export controls is creating significant disruptions within global arms industry supply chains. This analysis examines the case of Australia to illustrate the broader implications of using trade and technology restrictions as instruments of foreign policy and strategic competition.
Export controls, traditionally used to prevent the proliferation of weapons of mass destruction and to uphold international security norms, are increasingly being leveraged for broader geopolitical objectives. This shift introduces new layers of complexity and risk for defense contractors and their suppliers, who must navigate an evolving and often unpredictable regulatory landscape.
For Australia, a nation heavily reliant on imported defense technology and components, these politicized controls pose a dual challenge. On one hand, they can restrict access to critical technologies from traditional partners. On the other, they can force a costly and rapid diversification of supply sources and an acceleration of domestic industrial capabilities.
The case study highlights how sudden changes in export licensing, driven by political decisions rather than technical assessments, can delay major projects, increase costs, and force last-minute redesigns. This environment demands greater supply chain visibility, alternative sourcing strategies, and increased investment in sovereign manufacturing capacities.
Ultimately, the analysis concludes that while export controls are a legitimate tool of statecraft, their politicization risks fragmenting the global defense industrial base, reducing interoperability among allies, and stifling innovation through reduced collaboration. Countries like Australia are responding by bolstering their own defense industrial policies to mitigate these emerging supply chain vulnerabilities.