The Multi-Polar Authoritarian Supply Chain Supporting Russia in the War in Ukraine

10/30/2026

By Robbin Laird

On Oct. 20, The Insider published an investigation into the chemistry behind Russia’s explosives. Its central finding was stark: for the plasticizers, binders, acids and stabilizers Russia’s defense plants need, Chinese companies supply virtually all of them and in most cases also manufacture them. The Roshal Plasticizer Plant bought sebacic acid from China’s Farmasino and told customs it was for dioctyl sebacate, a binder for RDX and HMX plastic explosives. The Azot-Vzryv group bought polyisobutylene from Nanjing E-Strong through Nartas LLP, a Kazakh intermediary in Almaty. Azot-Vzryv has long supplied the Sverdlov Plant in Dzerzhinsk, which The Insider describes as virtually the only Russian producer of RDX-based military high explosives.

These details matter in their own right. Their larger significance lies in what they illustrate. Russia is not sustaining its war through one benefactor. It is drawing on a multi-polar authoritarian supply chain. China provides industrial depth. North Korea provides mass, in shells, missiles, soldiers and workers. Iran provided the drone design that Russia has since industrialized, and Iran is now a recipient of Russian munitions. Belarus functions as an adjacent factory floor. Intermediaries in Central Asia, the Caucasus, Türkiye and the Gulf provide the commercial and financial connective tissue.

A recent CSIS and George W. Bush Institute report uses the shorthand CRINK for China, Russia, Iran and North Korea, and notes that these states are not in a formal alliance but increasingly enable one another to evade pressure and sustain conflicts. That observation is the right starting point. The task is to understand how the network works, because its shape determines what can be done about it.

A Network, Not a Bloc

A bloc has a center that can be pressured. A network has nodes, and each contributes according to its own comparative advantage and its own interests. Beijing seeks a Russia that does not lose, without paying the price of open belligerence. Pyongyang seeks hard currency, combat experience and technology. Tehran sought a strategic partner and now needs one to rebuild. Minsk has tied its regime’s survival to Moscow. The intermediaries mostly seek profit.

That structure makes the network hard to disrupt and hard to see. Much of what flows through it does not look like an arms transfer. It moves as chemical trade, machine tools, electronic components, labor contracts, student visas and technology exchanges. Each piece can be explained away individually. Together they form a war economy that extends well beyond Russia’s borders.

China: The Industrial Depth

China is the backbone of the network, and the scale is measurable. A September 2026 policy brief by economists Tatyana Deryugina and Oleksandr Shepotylo found that Chinese exports to Russia across 85 core dual-use product codes rose from about $265 million a month before the invasion to about $525 million a month after it, a 98 percent increase. The same brief reports that China supplied more than 60 percent of the CNC machine tools Russia imported in 2023–2024, that drone-component exports roughly tripled to about $300 million a month by mid-2026, and that Ukrainian intelligence found Chinese parts made up an estimated 60–65 percent of the electronics in a Geran-2 drone recovered in 2025.

Two findings in that brief deserve particular attention. First, the relevant supply is overwhelmingly China’s own production going directly to Russia. The six commonly cited third-country hubs together added only about $20 million a month in dual-use exports to Russia, less than one-tenth of the increase in China’s direct exports. Second, the trade is cheap for Beijing. In 2025, the core dual-use flow was worth about $6 billion, roughly 6 percent of China’s exports to Russia and less than 0.2 percent of its exports to the world. China accounted for about 58 percent of everything Russia imported in the first four months of 2026.

The Insider’s chemical investigation fills in a layer that trade aggregates can obscure. China accounted for 87 percent of Russia’s chemical imports in the first quarter of 2025, though that figure does not separate civilian from military use. Earlier reporting tracked a parallel pattern in propellants: Chinese nitrocellulose exports to Russia, negligible before 2022, reached about 1,300 tons in 2023. Western equipment also reaches Russian munitions plants through Chinese channels. As Reuters reported in August 2025, the Biysk Oleum Plant, which produces TNT and HMX, obtained Siemens automation equipment through a Russian intermediary that sources from Chinese resellers, with no evidence that Siemens knew where it ended up.

Beijing’s official line is that it provides no lethal weapons and strictly controls the export of dual-use items, including drones. On Oct. 19 it announced further controls, effective Nov. 18, on specialized drone engines, brushless motors, electronic speed controllers and carbon-fiber blades. RFE/RL notes, however, that Moscow has been barely affected by earlier Chinese restrictions and that Chinese firms bypassing them to supply Russia rarely face prosecution. Ukraine, by contrast, has worked hard to reduce its exposure, cutting China’s share of its imported drone parts from nearly 90 percent at the start of 2024 to 28 percent in the first eight months of 2026. Chinese export policy is formally even-handed. In practice, it bears hardest on the side without a “no limits” partnership with Beijing.

North Korea: Mass and Manpower

If China supplies depth, North Korea supplies mass. Ukrainian military intelligence (HUR), as summarized by the Institute for the Study of War, estimates that North Korea provides 25 to 40 percent of current Russian artillery ammunition, has delivered more than 600 artillery systems, including Koksan 170mm self-propelled guns and 240mm rocket launchers, and has sent more than 100 KN-23 and KN-24 ballistic missiles. The cumulative estimate for 152mm shells reached about 15 million by March 2026. South Korea likewise reports more than 15 million rounds and more than 16,000 North Korean personnel dispatched to Russia since October 2024.

The relationship is deepening, not plateauing. In August, a HUR official told Reuters that a North Korean missile unit of about 90 personnel was deploying to Russia’s Voronezh region within the 112th Missile Brigade, with Russia expecting up to 120 missiles and six launchers. North Korean labor has also moved into Russia’s industrial base. The Multilateral Sanctions Monitoring Team estimated that Russia hosted 15,000 to 30,000 North Korean workers as of the end of 2025, some disguised as students, and Ukrainian intelligence estimates cited by CSIS put up to 12,000 at the Alabuga drone complex.

North Korea is not only a supplier. It is a learner. Seoul assesses that Pyongyang may be improving missile accuracy through battlefield data, and the CSIS report warns that technicians returning from Alabuga will bring mass-production drone experience back to Pyongyang, posing a new challenge for South Korea, Japan and U.S. forces in the Indo-Pacific. The war in Europe is, in effect, training a Pacific adversary.

Iran: From Supplier to Recipient

Iran’s contribution was foundational. Russia could not initially meet its own demand for long-range strike drones, and its answer was to manufacture the Iranian-designed Shahed on Russian soil. What began as a licensed import has become an industrial program Russia now owns. Ukrainian intelligence estimates that Russia is producing about 4,000 jet-powered Geran-4 and Geran-5 drones a month, alongside roughly 2,000 Geran-2s. Those are Ukrainian estimates and should be treated as such, but the direction is clear: the design came from Tehran, and the scale and refinement came from Russian factories under combat pressure.

The flow has now reversed. After the U.S. and Israeli strikes on Iran, a European government document cited by NBC News indicated that Russia was shipping explosives, ammunition and drone parts across the Caspian Sea to help Iran replenish its stocks, on a route Western navies cannot interdict. In October, Bloomberg reported, citing a Western official, that Russia is providing missiles to Iran, and that Iran had preserved enough missile and drone production capacity to rebuild its arsenals during the pause in strikes.

This is the clearest evidence that the network is multi-polar rather than hub-and-spoke. Russia is both consumer and supplier. Technology Iran transferred to Russia, improved through combat in Ukraine, can return to the Middle East. The Caspian functions as an interior sea for the network, linking the European and Middle Eastern theaters through a corridor outside Western maritime reach.

Belarus: The Adjacent Factory

Belarus has been integrated into Russia’s defense-industrial base to an extent that makes it, functionally, an extension of it. BELPOL, a group of former Belarusian security officers, claims that more than 500 Belarusian defense enterprises are working for the Russian army, producing artillery ammunition, Grad rockets, microchips, tank optics and components for Iskander and S-400 systems. More specifically, the Legmash plant is expanding its capacity while producing components for 122mm Grad rockets for final assembly in Russia, and a new Belarusian ammunition plant scheduled to begin operations in December is designed to produce up to 180,000 152mm shells and 270,000 122mm rockets a year.

The Connective Tissue

The intermediaries are the network’s capillaries. Nartas LLP in Almaty, routing a Chinese explosives binder to a Russian supplier, is a small but telling example. Eurasian Economic Union membership gives Kazakhstan and Kyrgyzstan open borders with Russia that remove customs scrutiny on intra-bloc trade, which circumvention networks can exploit.

The evidence here calls for precision. The Deryugina and Shepotylo brief finds that most of the 2022–2023 surges through third-country hubs have largely reversed under Western enforcement. Türkiye’s exports of core dual-use goods to Russia are at about 14 percent of their peak, while Kazakhstan remains the one hub where a sizeable flow persists, at about four times its pre-invasion level. Transit hubs matter, but they are not where the bulk of the problem lies.

Finance is where the intermediaries matter most. The EU’s 21st sanctions package in July listed 27 third-country entities, including 14 in China (four in Hong Kong), four in Türkiye, three in Kyrgyzstan, and two each in India, Kazakhstan and the UAE, and introduced a dedicated ban on third-country crypto-asset services along with designations tied to the A7 payments network and its new links to Africa. The 20th package in April had already targeted banks in Kyrgyzstan, Laos and Azerbaijan. The list underlines a further point: the authoritarian core relies on permissive commercial space in states that are not authoritarian partners at all.

What the Network’s Shape Means

Several implications follow. These are my assessments, built on the reporting above.

  1. Sanctions were designed for a narrower problem. Enforcement has concentrated on finished weapons and high-end electronics. The war is being sustained by chemistry, machine tools, labor and payment channels, much of it moving through ordinary commerce. An ammunition war is, at bottom, a chemicals war.
  2. Strikes and sanctions are coupled. The Insider notes that the more effectively Ukrainian drones hit Russian chemical plants, the greater Russia’s dependence on imports becomes. Nevinnomyssky Azot is the case in point, with Chinese supply covering part of the gap. Ukraine’s long-range strike campaign achieves its full effect only if the import substitutes are also closed off. That is kill-web logic applied to economic warfare: kinetic and non-kinetic effects have to be integrated against the same target set.
  3. The decisive node is China, and China pays little. If the hubs carry less than a tenth of the dual-use increase, pressure on Almaty or Bishkek cannot substitute for pressure on Beijing. At less than 0.2 percent of China’s global exports, this trade costs Beijing very little to sustain. Changing that calculation means raising the cost through financial measures against the banks and firms involved, at a price Western governments have so far been reluctant to pay.
  4. The learning loop is the long-term threat. North Korea is gaining missile-accuracy data and drone-production know-how. Iran is receiving Russian munitions refined in combat. China is watching how its components perform and how Western sanctions are enforced. The war in Ukraine has become a shared laboratory for the network, with consequences for the Korean Peninsula, the Gulf and the Western Pacific.
  5. A ceasefire would not dissolve the network. Russia and Ukraine have signaled willingness to resume U.S.-brokered talks, likely in Abu Dhabi around mid-November, but deep disagreements remain. Even a settlement would leave in place the expanded Alabuga complex, the new Belarusian shell plant, North Korean production lines and the supply relationships that feed them. A pause would become a period of regeneration, as it has for Iran.
  6. Ukraine’s own exposure is part of the equation. Ukraine still relies on China for thermal-camera sensors and lenses, battery cells, motor materials and some microelectronics. A Western response that does not build allied supply chains for those components leaves Kyiv competing with Moscow for the attention of the same Chinese factories.

Conclusion

The West tends to frame the problem as Russia plus helpers. The more accurate picture is a distributed authoritarian production system with Russia at its operational center: Chinese industrial inputs, North Korean mass, Iranian design now flowing back as Russian supply, Belarusian factories, and intermediaries that keep goods and money moving. It has no treaty and no headquarters, which is precisely what makes it resilient.

Countering it requires the West to think in network terms as well. That means treating chemical precursors, machine tools and payment channels as seriously as missiles, integrating sanctions with strike campaigns, accepting that the critical node is in Beijing, and recognizing that what is learned in Ukraine will not stay in Ukraine.

Sources

The Insider, “Chemical brother: Russia’s production of explosives and ammunition is heavily dependent on Chinese chemicals” (Andrey Zayakin, Oct. 20, 2026): theins.press/en/inv/298502

Tatyana Deryugina and Oleksandr Shepotylo, “China’s Support for Russia: Implications for Sanctions and Policy,” Policy Brief #4, Economists for Ukraine (Sept. 2026): econ4ua.org

Victor Cha and Joseph Kim, “Human Rights Abuses in Drone Production at Yelabuga,” CSIS and George W. Bush Institute (Oct. 14, 2026): csis.org; bushcenter.org

Yonhap, “N. Korea could bolster drone capabilities through workers at Russian factory” (Oct. 14, 2026): en.yna.co.kr

Institute for the Study of War, “Korean Peninsula Update, July 14, 2026”: understandingwar.org

Reuters, “North Korean missile unit deploys in Russia for Ukraine war, Kyiv says” (Aug. 5, 2026): reuters.com

Ground News aggregation of Yonhap/Reuters reporting on North Korean deployments: ground.news

Militarnyi, “Russia Ramps Up Geran-4/5 Jet Drone Production to 4,000 per Month”: militarnyi.com

Ground News aggregation of NBC News reporting on Russian shipments to Iran: ground.news

Iran International, “Russia is providing missiles to Iran – Bloomberg” (Oct. 10, 2026): iranintl.com; Ground News aggregation of Bloomberg reporting: ground.news

Militarnyi, “Belarus Expands Facility Producing Components for Russia’s Grad MLRS Ammo”: militarnyi.com

Ziare.com, BELPOL interview on Belarusian defense industry (in Romanian): ziare.com

Economies.com, “The Central Asian corridor boosts Russia’s wartime trade”: economies.com

European Commission, “EU adopts 21st package of sanctions against Russia” (July 23, 2026): finance.ec.europa.eu

European Commission, “Questions and answers on the 20th package of sanctions” (April 23, 2026): ec.europa.eu

The Diplomat, “The West Indulges China in Its Backing for Russia Against Ukraine” (May 2026): thediplomat.com

RFE/RL, “Ukraine Cuts Chinese Drone Dependence, But Critical Gaps Remain” (Matthew Fulco, Oct. 2026): rferl.org

Associated Press, “The not-so-secret vulnerability in Ukraine’s drone arsenal? Chinese technology”: apnews.com

Lansing Institute, “China’s Declared Neutrality vs. De Facto Involvement in the Russia-Ukraine War” (April 28, 2025): lansinginstitute.org

Associated Press via WSB Radio, “Ukraine and Russia eye new peace talks” (Oct. 24, 2026): wsbradio.com

Reuters on the Biysk Oleum Plant (Aug. 8, 2025), as cited in the original In Brief input.

Japan Funds Two New US Chip Fabs in New York

10/29/2026
In brief

Japan will finance up to $21 billion in new semiconductor manufacturing capacity in the United States, with GlobalFoundries (GF) building and operating the plants. According to a GF news release filed with the SEC on October 14, 2026, the company has been selected as technology provider and operator for two new fabs at its Malta, New York, site under a US-Japan initiative made possible by President Trump’s trade and investment agreement with Japan.

The division of labor is clear: Japan provides the capital, and GF contributes its technology, manufacturing expertise and operations. An initial investment of about $10 billion will fund a new 300mm fab expected online in 2029, adding about 900,000 wafers a year of US capacity when fully operational. A second investment of about $10 billion would fund a second fab of similar size. GF expects to break ground on the first, permitted and shovel-ready, later this year. The project is expected to create about 27,000 construction and ecosystem jobs and more than 1,000 high-skilled manufacturing jobs (SEC).

Two related agreements accompany the deal. GF will amend its existing CHIPS and Science Act award to reallocate $955 million toward silicon photonics, silicon-germanium and advanced packaging in Malta and Burlington, Vermont, technologies important to communications infrastructure and data centers. Separately, the Department of Commerce will receive an equity stake of about 4% in GF (SEC).

Commerce Secretary Howard Lutnick said the investment would create “transformational American industrial assets that strengthen our national and economic security.” The customer list explains the focus on “foundational” chips rather than leading-edge processors. Renesas plans to treat the new capacity as an extension of its own production footprint, Tokyo Electron supplies equipment, and Apple, Cirrus Logic and GM all point to resilient domestic supply for products ranging from phones to software-defined vehicles (SEC).

The significance lies in the type of chips and the model of alliance. Foundational chips power vehicles, industrial systems, communications and much of the defense electronics base, and GF lists aerospace and defense among its core markets. Shortages of these less glamorous chips have repeatedly disrupted Western production. The deal also shows a new form of allied industrial policy, in which a partner’s trade commitments are turned into capital for American capacity, while Washington takes direct equity in the operator.

The caution is in the timeline and the structure. The first fab is three years away, and the second is not yet committed. Japanese funding, a government equity stake and a reallocated CHIPS award make this a politically engineered project, and its durability will depend on whether the customer demand and the US-Japan trade framework both hold over the decade it takes to pay off.

Source: GlobalFoundries, “GlobalFoundries selected to operate two new semiconductor fabs in New York under landmark U.S.-Japan initiative,” news release (Exhibit 99.1, SEC filing), October 14, 2026.

From Capability to Strategic Capacity

The last installment traced how the geography of European defense has shifted from a Franco-German engine to a genuinely networked pillar, layered across NATO, the EU, and smaller coalitions. This installment turns to the question underneath that architecture: even with the right actors in the right places, what does it actually take to convert what Europe has into usable strategic power?

Resources Are Not Power

Preziosa opens this section with a claim that’s easy to state and harder to sit with: Europe does not fundamentally lack resources. Its aggregate economic scale is enormous. It has advanced industries, sophisticated armed forces, world-class research institutions, technological competence, extensive infrastructure, human capital, deep financial resources. None of that is in question.

What’s in question is whether possessing those resources amounts to strategic power, and Preziosa’s answer is no — not automatically. Defense spending, industrial capacity, technological sophistication, military platforms, and institutional structures are necessary components of power, but none of them constitutes strategic power on its own. Their value comes from the political, industrial, technological, institutional, and military relationships through which resources get connected, mobilized, converted, employed, replenished, and sustained. Europe’s central challenge, on this account, isn’t accumulating more resources. It’s building and maintaining the linkages that can convert the resources it already has into strategic freedom of action, at the speed and scale the moment requires.

Why War Changes the Measure of Power

The return of large-scale war to Europe has made this conversion problem impossible to ignore, because prolonged competition changes what “military power” even measures. It stops being about what a force possesses at the start of a conflict and becomes about what the wider strategic system can keep generating as the conflict continues. Munitions have to be replenished. Platforms repaired or replaced. Personnel trained. Software updated. Production adjusted to operational experience. New technologies integrated. Supply chains and infrastructure kept functioning. Political support sustained.

A force that can’t regenerate what it consumes or loses will progressively lose strategic value, regardless of how sophisticated its capabilities were on day one. Force generation, in this framing, is the mechanism through which potential power becomes usable and sustainable power — it connects finance, industry, energy, transportation, technology, skilled labor, logistics, training, political decisions, and alliance relationships to actual operational effect, which means weakness anywhere in that chain can quietly reduce the strategic value of capabilities that sit elsewhere in the system entirely.

Preziosa is careful to note that Laird treats this as a systemic point, not a narrow industrial one: force generation can’t be reduced to defense production alone. It depends on a wider ecosystem — energy, transportation, data, supply chains, skilled labor, industrial tooling, infrastructure, civil-military planning — all of it.

Resilience Is Not Autarky

This reframes what resilience actually means. In an interconnected strategic system, resilience can’t be equated with self-sufficiency, and strategic autonomy can’t usefully mean independence from allies or the elimination of external dependencies — that goal would be neither realistic nor desirable. The relevant question is the structure of dependence: do critical relationships have alternatives? Can disrupted routes be bypassed? Can production be redistributed? Can essential functions survive the loss of individual nodes? Can states and alliances still act when a supplier, technology, or relationship they normally depend on suddenly becomes unavailable?

Strategic sovereignty in an interconnected world rests less on eliminating dependence than on preventing dependence from turning into paralysis. Strategic agency is compatible with interdependence; strategic paralysis is not. Redundancy, diversification, modularity, alternative suppliers, distributed production, stockpiles, protected infrastructure, industrial depth — all of it can look like inefficiency under normal conditions, and all of it becomes something else entirely once the system is under stress: the preservation of alternatives, and therefore of future freedom of action. Preziosa’s phrase for this is worth keeping: they are repositories of strategic options.

Generate, Regenerate, Reconfigure

The Ukraine war adds a further requirement on top of generation and regeneration, and it’s the section that gives this installment its second half. It’s no longer enough to build capability and sustain it — the wider system has to be able to reconfigure that capability as technologies, operational requirements, and adversary behavior evolve, because the war has shown how fast tactics, countermeasures, software, sensors, drones, and electronic warfare can interact and change each other. A capability that produces a real advantage at one stage of a conflict can lose much of its effectiveness once the adversary understands how it works and develops a countermeasure.

Military innovation, in other words, can no longer be understood as a straight line from research through procurement to eventual replacement. Operational experience feeds directly back into technological development and production, in a continuous cycle: battlefield observation informs engineering and software changes, production incorporates them, modified capabilities go back into operations, and the adversary responds in turn. Preziosa frames competitive advantage as depending less on possessing the single most sophisticated capability at a given moment, and more on how fast that whole cycle — observation, learning, modification, production, employment — can turn.

This also collapses the old choice between small numbers of highly sophisticated systems and large numbers of less capable ones. What the book describes as intelligent mass points toward something else: high-end capability operating alongside affordable, distributed, software-enabled systems that can be produced, replaced, modified, and integrated at operationally relevant speed. Quality and quantity, on this account, are connected by the capacity of the force-generation system to reproduce capability while continuously adapting it — which is why reproducibility itself becomes a dimension of a system’s value, alongside how it performs the day it enters service.

Preziosa draws these threads into three linked capacities that European strategic agency has to rest on:

  • Generation — converting available resources into strategically useful effects
  • Regeneration — replacing and restoring what prolonged competition consumes, degrades, or destroys
  • Reconfiguration — modifying forces, technologies, production systems, and operational relationships as the environment changes

These aren’t sequential stages. They’re interacting functions of a single adaptive system, and their interdependence is the real lesson: generation without regeneration produces impressive but temporary power; regeneration without adaptation risks reproducing capabilities whose relevance is already fading; adaptation that can’t be scaled stays operationally marginal; technological sophistication without sustainment eventually exhausts itself. Strategic power, in the end, resides less in the capabilities a system currently holds than in its capacity to generate, regenerate, and reconfigure them as the competition itself keeps changing.

Next in the Series

Installment five turns to the dimension that ties generation and regeneration together across time: the “temporal architecture” of strategic power, why deterrence has what Preziosa calls an industrial clock, and the quieter, cognitive form of erosion that accompanies every peace dividend.

 

From Future Shock to the Age of Chaos: Carrying Alvin Toffler’s Question into a World of Contested Order

10/28/2026

By Robbin F. Laird

When I met Alvin Toffler during my time at Columbia, Future Shock was already one of the defining books of its era. It had given a name to something many people felt but could not articulate: the sense that change itself had become a force acting on us, not simply a series of events happening around us. Toffler defined future shock as “too much change in too short a period of time,” and he argued that the resulting “shattering stress and disorientation” was not a private failing but a social condition.

More than half a century after the book appeared in 1970, I find that its central question has not gone away. It has migrated. It has moved from the living room and the workplace into the war room, the ministry, the alliance headquarters, and the boardroom of the defense industrial firm. In my recent books, The Age of Chaos: Democratic Strategy, Kill Web Warfare, and Authoritarian Power and Mastering Chaos: Shaping a Way Ahead for Chaos Management, I have tried to take that question seriously in our own time.

I do not claim to have written the contemporary Future Shock. That would understate Toffler and overstate what any single body of work can accomplish. My claim is narrower and, I think, more useful: I have carried one of his central questions into the world of contested international order and practical leadership. Toffler asked what happens when the pace of change exceeds our capacity to absorb it. I ask what it takes for institutions to keep thinking, deciding, and acting when the very frameworks through which they understand the world are themselves in flux.

The Question Toffler Got Right

It is easy to remember Future Shock as a catalogue of novelties: disposable products, transient relationships, mobile careers, the rise of what Toffler called “adhocracy” in place of fixed bureaucratic structures, and the flood of data he described as “information overload.” Those images captured the imagination of millions of readers, and many of them have aged remarkably well. Anyone who has lived through the smartphone era, the collapse of trusted information intermediaries, and the arrival of generative AI can recognize the world he sketched.

But the enduring insight of the book was not a forecast of particular technologies. It was a claim about a relationship. Toffler argued that human beings, and the societies they compose, have an adaptive range. Within that range, change can be absorbed, interpreted, and turned to advantage. Beyond it, change produces disorientation, withdrawal, overreaction, and poor judgment. The problem was not change as such. The problem was the gap between the rate of change and the capacity to adapt to it.

That formulation is why the book still matters. Technologies date quickly; relationships between pressure and capacity do not. And it is precisely that relationship which now defines the strategic environment that democratic leaders confront.

Toffler also understood something that is often forgotten about his work: he was not merely a diagnostician of anxiety. Future Shock was concerned with how individuals and institutions might enlarge their adaptive range, how societies could build what he called stability zones, and how governance could become more anticipatory. He was asking not only “what is happening to us?” but “what can we do about it?” That constructive impulse is the part of his legacy I most want to carry forward.

Toffler and the Military Imagination

There is a second reason Toffler’s work connects to mine, and it is less widely appreciated outside defense circles. Alvin and Heidi Toffler became important figures in the American military’s thinking about transformation. Senior Army leaders, including Chief of Staff General Gordon Sullivan and TRADOC commander General Frederick Franks, turned to the Tofflers for insight as the Army wrestled with what came to be called the revolution in military affairs.

Their 1993 book, War and Anti-War, argued that “the way we make war reflects the way we make wealth.” As economies moved from industrial mass production to knowledge-based production, they contended, warfare would follow. Several of their themes were later taken up by proponents of network-centric warfare, who embraced the idea that military power flows from the way a society creates its prosperity.

I spent much of my career inside that debate, working with military services and defense organizations as they tried to turn the promise of information-age warfare into actual capability. Some of that promise was realized. Some of it was oversold. The networks of the 1990s and 2000s were conceived largely in an environment of Western technological dominance, permissive airspace, and adversaries who could not contest the electromagnetic spectrum or space. The assumption, often unspoken, was that information superiority would belong to us.

That assumption no longer holds. The war in Ukraine has become, in my judgment, the first full-scale laboratory of what I call kill web warfare: distributed sensors, commercial satellite constellations, artificial intelligence, uncrewed systems, and digitally networked command structures combined into an operational model in which connectivity and adaptation shape the character of combat. Democratic ISR grids and indigenous intelligent mass have challenged platform-centric force design. But the kill web is contested on both sides. Each adaptation produces a counter-adaptation, often within weeks rather than years.

Toffler anticipated that nonlinearity. In a later interview he observed that in a period of enormous economic and social turbulence, “non-linearity increases,” and “small inputs can have enormous outputs.” That is a fair description of the drone war over Ukraine, where inexpensive systems iterated in small workshops have shaped outcomes that would once have required expensive platforms produced over decades. It is also a fair description of the strategic environment more broadly.

So the line from Toffler to my work runs not only through Future Shock but through the Tofflers’ influence on military transformation. My forthcoming book on lessons in military transformation, from the RMA to the drone wars, is in part an attempt to assess what that earlier intellectual moment got right, what it missed, and what we must now learn.

From Acceleration to the Contest over Order

If Toffler’s subject was the stress produced by accelerating change, my subject in The Age of Chaos is what happens when that acceleration coincides with the breakdown of an international order.

For more than three decades after the end of the Cold War, Western strategic thinking rested on the assumption that the international system had entered a phase of durable stability. The language of a “rules-based international order” trending toward liberal norms implied that disturbances were temporary and that the system’s underlying direction was settled. That language no longer describes the world democratic leaders actually have to navigate. It describes an assumption that has been operationally falsified by events.

We are not living through a passing disturbance. We are living through a systemic transition from one global order to another whose destination is still contested. That is what I mean by the Age of Chaos. The term does not signify the absence of order. Power continues to operate, institutions continue to function, and alliances endure. But the frameworks that once bound them together are dissolving faster than new ones can be constructed.

Here my argument departs from Toffler’s in an important way. In Future Shock, change is largely a structural force, driven by technology and the transition to what he called super-industrial society. In the Age of Chaos, change is also a field of action. Other actors are deliberately shaping it.

Russia, China, Iran, and North Korea are constructing what I describe as a multi-polar authoritarian architecture. It is not a formal alliance with shared treaties or ideological manifestos. It is a flexible ecosystem of mutual accommodation in which economic, military, technological, and diplomatic resources are exchanged in ways that reduce vulnerability to Western pressure. Its effectiveness lies in its adaptability. These states are not merely experiencing turbulence; they are exploiting it, and in some cases generating it.

At the same time, middle powers such as Australia, Japan, Poland, and Brazil have acquired a weight in shaping outcomes that would have been far less likely in the bipolar or unipolar eras. Their technological alignments, supply-chain decisions, and security partnerships will help determine whether the system hardens into rival blocs, remains fragmented, or moves toward some form of competitive coexistence.

This is the decisive shift in the problem. Toffler asked whether we could keep up with change. The Age of Chaos forces a harder question: who will shape the emerging order while others are still struggling to understand it? Disorientation, in this environment, is not only a psychological cost. It is a strategic vulnerability that adversaries can identify and exploit. A democracy suffering from something like future shock is a democracy that cedes initiative.

From Crisis Management to Chaos Management

The practical core of my argument is a distinction between crisis management and chaos management.

Traditional crisis management assumes that a crisis is a discrete event within an otherwise stable system. Leaders mobilize resources around a defined problem, restore the previous equilibrium, and then stand down. The crisis is resolved and filed away. That model served Western institutions reasonably well for much of the late twentieth century.

In the Age of Chaos, its premise no longer holds. Crises no longer arrive one at a time. They overlap, interact, and amplify one another. Economic shocks reshape security policy; technological competition reshapes alliances; regional wars reverberate through global markets and supply chains. The very tools that connect the system, including digital networks, global supply chains, and AI-enabled platforms, simultaneously destabilize it.

Chaos management begins from a different starting point. There may be no stable equilibrium to return to. The task of leadership is to treat turbulence as the operating condition, not the exception, and to shape the environment continuously rather than merely react to individual shocks.

That is why I open Mastering Chaos with a blunt proposition: you cannot plan your way through genuine chaos. The question facing senior leaders is not whether they will encounter complex, unpredictable situations in which the parameters of the system itself are shifting. They will. The question is whether they have built the organizational capacity to function effectively within them.

If Future Shock described the strain on the individual, chaos management focuses on the design of the organization. That is the most important difference in emphasis between Toffler’s work and mine.

Building Adaptive Capacity Deliberately

Toffler wrote about enlarging our adaptive range. In Mastering Chaos, I try to specify what that means for military services, government ministries, critical infrastructure operators, and firms in disrupted markets.

I frame adaptive capacity around three pillars.

The first is intellectual flexibility. Organizations must be able to treat strategy as a living hypothesis rather than a sacred text. That means building the habit of revising assumptions when evidence changes, recognizing patterns under uncertainty, and acting on provisional maps while the terrain is still shifting.

The second is institutional resilience. Most organizations unconsciously optimize for efficiency under stable conditions. That optimization makes them brittle when the environment shifts. Resilience requires accepting a measure of redundancy, preserving organizational memory, and designing structures that balance an enduring core of capabilities with a flexible surge capacity that can be reallocated as conditions change.

The third is social cohesion. Under pressure, organizations do not fail only because they lack information or resources. They fail because trust breaks down, because people stop listening across hierarchies and functions, and because shared purpose dissolves. Coordinating rapidly under extreme pressure depends on relationships built before the pressure arrives.

Underneath those pillars are cognitive skills that can be trained: adaptive thinking, pattern recognition under uncertainty, emotional regulation and stress tolerance, and collaborative sensemaking across distributed teams. I argue that leaders capable of these skills, whom I call chaos navigators, are not simply born. They are forged through realistic simulation, structured reflection, and organizational follow-through.

The key word is “deliberately.” It is not enough to urge people to be comfortable with uncertainty. Institutions must decide to invest in adaptive capacity, to measure it, to develop people for it, and to protect it from the constant pressure to optimize for yesterday’s conditions.

One of the most important shifts I ask leaders to make is in strategic planning itself. Traditional planning asks, “What will happen?” and prepares specific responses. In chaotic environments, that approach fails because the parameters are moving. The better question is, “What capabilities do we need to adapt to whatever happens?” That shift changes investment decisions, organizational structures, and the way success is evaluated.

This is, in a sense, a quiet amendment to the futurist tradition Toffler helped create. Futurism was often associated with forecasting. But forecasting cannot carry the burden of preparation when the system itself is in transition. Preparation must rest instead on the capacity to recognize changed conditions quickly, revise assumptions honestly, coordinate action, and retain strategic direction.

The Human Layer

Toffler’s great achievement was to put the human being back at the center of discussions of technological change. He insisted that change was not experienced by economies or abstractions but by people with finite capacities.

I believe that insight is essential for strategy as well. States, militaries, and alliances are composed of people whose perceptions, fears, and aspirations shape how they respond to systemic change. Strategic analysis that ignores this human layer often produces recommendations that look coherent on paper but fail in execution.

That is why my books place so much emphasis on listening as an operational capability. The adaptive organizations I have studied, from Marine Corps units experimenting with forward, distributed impact forces to allied navies integrating maritime autonomous systems, cannot function if their leaders treat communication as one-way messaging. Empathy, in this context, is not sentimentality. It is the ability to understand how partners, subordinates, and adversaries perceive the same turbulent environment and to adjust plans and narratives accordingly.

Whether the issue is Pacific allies recalibrating their policies toward China or Ukrainian commanders improvising under fire, genuine listening is a prerequisite for effective action. It is also how organizations absorb change without being broken by it. In that sense, the leadership dimension of my work is a direct descendant of Toffler’s humanism.

What I Would Not Claim

An honest account of this intellectual relationship requires some restraint.

First, Toffler’s canvas was broader than mine. He wrote about family, work, education, culture, and the texture of everyday life. My work is concentrated on strategy, military transformation, institutions, and leadership. I am extending one of his lines of argument, not replacing his account of social change.

Second, I should not suggest that Toffler merely diagnosed a problem and that I am supplying the solution. He was already thinking about how societies could adapt, and no leadership framework can promise mastery over a genuinely chaotic environment. “Mastering chaos” is a stance and a discipline, not a guarantee.

Third, the Age of Chaos is a description of a transition, not a prophecy of permanent disorder. Periods of systemic transformation are often remembered less for their uncertainties than for the choices that shaped their outcomes. The generation of leaders that navigated the early Cold War faced a future that was equally uncertain, and the institutions they built defined the strategic landscape for decades. Our moment presents a comparable test. My case for adaptive capacity does not depend on believing that chaos will last forever. It depends on recognizing that no one can safely assume when, how, or on whose terms a new and more stable order will emerge.

The Question That Remains

When I think back to meeting Alvin Toffler, I am struck less by the specific predictions in Future Shock than by the seriousness of the question he posed. He asked what happens to people and societies when the future arrives faster than they can make sense of it. He refused to treat that as merely a technological question, and he refused to treat it as hopeless.

My own work returns to that question from a different vantage point: decades of engagement with commanders, planners, and officials across allied democracies who are trying to adapt institutions, forces, and industries in real time. From that vantage point, the challenge looks like this. Democratic societies retain enormous adaptive capacity. Their political openness, technological creativity, and alliance networks remain formidable strategic assets. But those advantages cannot be taken for granted. They must be cultivated through sustained investment in industrial resilience, technological innovation, institutional reform, and leadership development.

Toffler warned that change could overwhelm us. The Age of Chaos adds that others are working to ensure that it does. The answer is neither nostalgia for a settled order that no longer exists nor faith that technology alone will restore our advantage. The answer is to build the judgment, resilience, and shared purpose needed to act when the frameworks through which we once understood the world are themselves changing.

That is not the end of Toffler’s argument. It is, I hope, one of its continuations.

Source Notes

  • Definition of future shock and Toffler’s coinage of “information overload”: NBC News obituary of Alvin Toffler
  • Future Shock (1970), co-written with Heidi Toffler; “shattering stress and disorientation,” super-industrial society, information overload, and adhocracy: Future Shock overview
  • The Tofflers’ influence on Army RMA thinking, including Generals Sullivan and Franks: The Tofflerian Paradox
  • War and Anti-War (1993), “the way we make war reflects the way we make wealth,” and its influence on network-centric warfare: S. Army, “Is the conduct of war a business?”
  • Toffler on nonlinearity and “small inputs can have enormous outputs”: Catholic Exchange interview with Alvin Toffler
  • Robbin F. Laird, The Age of Chaos: Democratic Strategy, Kill Web Warfare, and Authoritarian Power (Second Line of Defense, 2026), Introduction and Forewords by Lt. Gen. (Ret.) Pasquale Preziosa and Dr. Kenneth Maxwell.
  • Robbin F. Laird, Mastering Chaos: Shaping a Way Ahead for Chaos Management (Second Line of Defense, 2026), Introduction and Foreword by AVM (Retd) John Blackburn.

South Korea Tests the Northern Sea Route by Containership

In brief

South Korea has completed its first Arctic round trip with a containership and has committed to expanding the effort. According to The Maritime Executive on October 13, 2026, the Panstar Acro returned to Busan on October 11 after a 50-day round trip to Europe and back along Russia’s Northern Sea Route (NSR). The voyage was not a commercial success, but Korean officials called it a “springboard” for a planned service.

The 2,758 TEU ship, built in 2011, was acquired from HMM in early August and ice-strengthened for the voyage, organized with government and shipping association support. The crew received Arctic training, and the first officer came from South Korea’s icebreaker research ship. Panstar Acro left Busan on August 22, entered the Arctic on August 31, called at Felixstowe and Rotterdam, and departed Gdansk on September 18. It returned five days behind schedule but with no major incidents (The Maritime Executive).

President Lee Jae-myung said the trip took about ten fewer days than the Suez route and pledged investment in Busan as a maritime hub, polar seafarer training and research into icebreaker and ice-capable ship technologies. He said Korea would ensure the route “does not remain the exclusive interest of any one country” and would abide by international regulations and “the principles of sanctions” (The Maritime Executive).

The commercial results were weak. Only 737 laden containers were shipped to Europe, carrying chemicals, used vehicles and auto parts from six domestic shippers. Aju Press reports that the ship attracted no import cargo and returned with 1,743 empty containers. Officials blamed a late start to marketing. The Ministry of Oceans and Fisheries plans another trial in 2027, aims for a regular service by 2030 and expects economic viability between 2035 and 2040. Citing disruptions from the war in the Middle East and the Red Sea, Minister Hwang Jong-woo said that within 15 years ships could transit the Arctic for more than six months a year (The Maritime Executive).

The significance lies in why a close US ally is investing in a Russian-controlled route. The drive is chokepoint risk. With the Red Sea and Hormuz under pressure, Korea is hedging its trade routes, and its shipbuilding strength in ice-capable ships gives it an industrial stake in Arctic shipping. The emphasis on sanctions and on keeping the route open to all is a signal to Washington and Europe that Seoul is not opening a channel to Moscow.

The challenge is that the NSR runs through Russian waters under Russian rules, with Russian icebreakers and a growing Chinese presence. Any regular Korean service will depend on Moscow’s goodwill and will raise questions within the Western alliance about sanctions, Arctic security and who sets the terms in the High North. For now, the voyage generated data and experience more than trade, and those strategic questions will matter more as the cargo grows.

Source: The Maritime Executive, “South Korea Renews Commitment to Arctic Service as Boxship Ends NSR Trip,” October 13, 2026.

Which Industrial Habits Should America Import from Korea in Shipbuilding?

10/27/2026

By Robbin Laird

Marcus Jones, writing for CIMSEC on October 2, has made a case that deserves a wider audience than the shipbuilding specialists who will read it first. His argument is that Korean shipbuilding will matter to American naval power only if American institutions change how they buy, schedule, repair, and build. Money and goodwill are not enough.

I agree with nearly all of it. The article stops one step short, though, and that step is where the more interesting strategic question sits.

Jones writes about the crewed fleet: destroyers, auxiliaries, submarines, and the repair of hulls the Navy already owns. That fleet needs the fix he describes.

But the fleet being built around it is increasingly a mesh of autonomous and lower-cost systems, and that fleet is made differently.

The question I want to raise is whether the production disciplines America is about to import from Korea suit that second fleet, or whether we risk solving the old problem with habits that will constrain the new one.

The Test Jones Sets

Jones starts from a hard fact. The Navy’s May 2026 Shipbuilding Plan describes the failure of American shipbuilding as structural. The fleet counts 291 battle force ships against a statutory objective of 355. Virginia-class production runs at roughly one and a quarter boats a year against a stated goal of two. Shipbuilding employment has fallen by tens of thousands since 1980. The plan’s new “Total Naval Vessel Force” of 450 reaches that figure largely by counting auxiliaries and unmanned vessels alongside the 299 battle force ships projected for 2031, and Jones is right to warn against reading that as restoration of the manned fleet.

Against this background he treats South Korea as the first serious test of whether the Navy’s declared reforms can become industrial practice. The Korea-U.S. Shipbuilding Partnership Initiative, the new partnership center that opened in Washington in July, and the $150 billion investment commitment tied to MASGA give the effort institutional form. Hanwha owns Philly Shipyard and plans an expansion that would lift output from fewer than two ships a year toward as many as twenty. HD Hyundai has signed a broad agreement with Huntington Ingalls covering distributed shipbuilding, automation, and auxiliary teaming. Samsung is working with Vigor, with General Dynamics NASSCO, and with Hanwha Ocean.

Jones’s most useful contribution is a distinction between three things that are easily conflated: Korean work performed abroad, Korean capital invested in the United States, and Korean methods adopted by American yards. Work abroad relieves bottlenecks. Capital rebuilds physical capacity and sustains commercial workload. Only the third changes how American yards perform. The first two, he argues, should be judged by how well they enable the third.

I would adopt that test as it stands.

It is rigorous, and it cuts through the announcement-driven character of most allied industrial cooperation. My question is what exactly is being absorbed.

What Korean Discipline Buys

Jones describes the Korean advantage precisely. Korean commercial yards practice front-loaded production engineering, high design maturity, extensive design reuse, controlled change, complete work packages, and protected production sequences. They do not push unfinished work downstream for later correction. The Navy’s own emerging acquisition language now echoes these principles: mature designs before construction, modular fabrication, and sensitive integration concentrated at designated yards.

The early repair cases show both the value and the friction. Hanwha’s overhaul of USNS Wally Schirra was first described as a three-month job. It involved more than 300 work items and extensive hull deterioration, and it required a rudder that Hanwha engineers had to reverse-engineer because usable blueprints did not exist. The ship left after seven months. HD Hyundai’s work on USNS Alan Shepard started at about sixty items and grew by more than a hundred.

Jones reads these as a procedural mismatch and not a Korean failure, and I think that reading is correct. Commercial shipbuilding assumes a mature work package. Naval repair finds out what is wrong with the ship after the ship is in the dock. The lesson is that Korean collaboration earns its keep when it forces the Navy to improve technical data, configuration control, and pre-availability planning. An efficient allied yard that inherits American uncertainty is merely efficient at being uncertain.

All of this concerns hulls that are designed once, built to a mature plan, and expected to serve for decades. That is the logic of the traditional yard.

Two Industrial Models, Not One

My argument about the future of naval shipbuilding is that the industrial base is bifurcating. One side is the traditional yard and dry dock: large facilities, heavy capital, mature designs, long cycle times, and workforce pipelines measured in years. That side will keep building the ships that cannot be replaced by anything else, and Jones’s reforms are aimed squarely at it.

The other side looks different. Autonomous surface and undersea systems are increasingly built through dispersed, mold-based manufacturing, closer to production lines than to yards. Companies such as MARTAC, with its T-82, and C-2 Robotics in Melbourne illustrate it. These hulls are cheaper, produced in larger numbers, and often built in places that have never built a warship. Their value comes less from the hull than from the payloads and software that ride on it, and those change quickly.

Here the Korean discipline Jones praises becomes a double-edged tool. Design freeze, controlled change, and suppression of late modification are virtues when the product is a destroyer or a logistics ship. The August 13 presidential memorandum Jones cites directs that mature parent designs not be subjected to iterative Navy redesign without senior approval, which is sound for that class of vessel. For an autonomous mesh fleet, though, the capability is expected to change continuously. A fleet node that cannot take a new sensor, a new communications package, or a new autonomy stack within weeks has missed the point of being a node.

The reconciliation, I think, is to freeze the interfaces and leave the capability free. Korean production discipline applied to the hull, the power system, the payload bays, and the standards by which modules connect would make a mesh fleet easier to build at scale. The same discipline applied to the payloads and software would work against everything that makes the fleet adaptive. Controlled change is a good rule for a hull and a poor one for a mission system.

This distinction matters in practice. When the Navy and its allies write the contracting rules that will govern Korean participation, they will either encode the difference or flatten it. If the working assumption is that Korean methods mean maximum design stability everywhere, we will have imported the right habit for half the fleet and the wrong one for the other half.

The Sentence Jones Doesn’t Develop

Jones mentions in passing that Samsung signed an agreement in July 2026 with Saronic, extending its engagement with the American maritime system into autonomous vessels and production automation. He lists it with the other pathways, ownership, investment, repair, design support, and workforce development, and moves on.

I would not make too much of a single agreement, and neither does Jones.

But it points at something the larger discussion has missed. Jones observes that Korean firms are moving toward higher-value vessels, naval work, and smart-yard technologies as Chinese competition erodes their position in standard commercial ships. Automation and production engineering are therefore part of how Korean yards are repositioning themselves, not side interests.

If those capabilities carry over to dispersed autonomous production, Korea could be useful to both halves of the American fleet. It could teach the traditional side how to build disciplined, high-throughput blocks, and it could help the autonomous side industrialize without losing the speed that makes it valuable.

That possibility turns the question around. The usual framing asks what Korea can supply that America lacks. A better framing asks which part of the American maritime enterprise should be learning which Korean lesson, and in what order. The traditional yards need production discipline. The autonomous builders need scale and automation. Treating those as the same problem will produce one program that serves neither.

Commercial Hulls and the Mothership Path

There is also a hull-type connection. Jones argues that commercial workload sustains the industrial substrate on which naval construction depends, and he points to Newport News and NASSCO, which grew through merchant and commercial work before becoming major naval builders. He identifies auxiliaries as one of the most plausible near-term lanes for Korean participation, because they are industrially demanding without the political and technical sensitivity of submarines, carriers, or major combatants.

This is the lane in which commercial and autonomous shipbuilding overlap.

Korea’s strengths are in LNG carriers, very large containerships, and other technically demanding commercial hulls. Those are the kinds of hulls from which motherships and conversion platforms for autonomous systems are most likely to come, whether purpose-built, as in Singapore’s and China’s programs, or converted from commercial and support hulls, as in several American efforts.

A Korean-American partnership that builds auxiliaries and commercial-derived hulls in American yards could serve the conventional fleet and the autonomous fleet at once. Hanwha’s commercial orders at Philadelphia, intended to create workload for the yard, point in the same direction.

What Seoul Wants, and Why It Matters

Jones is unusually clear about Korean motives, and that clarity is the most valuable part of his article. Korean participation is not a simple matter of Washington identifying a deficiency and Seoul filling it. South Korea has long sought freedom of action despite permanent exposure to larger powers. Shipbuilding investment in the United States offers a protected market, diversification away from Chinese competitive pressure, and a chance to turn commercial expertise into strategic relevance, in effect becoming a producer of alliance capability and not only a consumer of American security.

He also notes the limits. Korean firms will be cautious about becoming indispensable to the production of front-line combat power for a Taiwan or South China Sea contingency. Beijing has already shown it can reach into the partnership: in October 2025 it sanctioned five U.S.-linked Hanwha Ocean entities, including Hanwha Philly Shipyard, then suspended the measures for a year the following month. By my reading, that suspension comes up for decision about a year after it was granted, so the partnership’s exposure to Chinese leverage is a live issue now and not a historical footnote.

This is the middle-power problem, and it is not unique to Korea. Australia faces a version of it, with a hull gap in its surface fleet, alliance obligations, and an economy deeply tied to China. Japan faces another.

What these three have in common is that each wants to contribute to allied capability on terms that preserve its own agency and manage its exposure to Beijing. A coalition shipbuilding model that treats them as interchangeable pools of capacity will fail on their incentives.

One that fits participation to what each wants, with a Korean lane in disciplined commercial and auxiliary production, an Australian lane in autonomous systems and sustainment, and a Japanese lane in proven hull designs, has a chance of lasting past the next election in any of the capitals.

Autonomous systems also help with the sensitivity problem. Firms wary of building crewed warships for a Taiwan contingency may be more willing to build commercial-derived motherships, uncrewed hulls, and production tooling.

This is not a way around Seoul’s caution. It is a way of matching the work to what Seoul can accept.

What America Must Change, Revisited

Jones lists eight requirements: durable law and governance, a cleared production-engineering exchange, governed distributed shipbuilding, bounded participation by vessel class, a binding workload compact, a serious workforce compact, a security architecture suited to allied work, and output-based measurement. I would not change the list. I would add four refinements that reflect the bifurcation.

First, write the standards before the contracts. If the aim is to freeze interfaces while leaving capability free, the Navy needs open, enforceable interface standards for hulls, power, and payload bays. Those standards should be set early and should bind any yard, American or allied, that builds to them.

Second, run two contracting tracks. Crewed hulls and auxiliaries belong under the mature-design, controlled-change regime Jones describes. Autonomous platforms need acquisition rules that allow frequent payload and software updates without reopening the hull contract. The failure mode to avoid is applying the slower track to everything because it is the one the system already knows.

Third, extend the workload compact to cover both models. Jones is right that no investment survives if contracted work disappears or moves unpredictably, and his figure for Norfolk’s Colonna’s Shipyard is striking: of 46 solicited 2026 availabilities the firm examined, 21 had reportedly been moved, canceled, delayed, or put on hold. Dispersed autonomous builders face the same instability. A start-up manufacturer cannot hire and tool up against orders that may not materialize.

Fourth, treat workforce as two problems. The traditional yards need welders, fitters, and the white-collar production engineers Jones rightly says are routinely left out. Dispersed manufacturers need people trained in composites, automation, software integration, and rapid production. Korean training partnerships can contribute to both, but only if somebody designs them that way.

The Measure That Matters

Jones closes with a set of output questions. Is usable capacity rising? Is throughput up? Is rework down? Are work packages more mature? Are workers being retained?

I would add one more, specific to the argument here: can the American maritime system now run two industrial models at once?

That is a stricter test than it sounds.

A system that has learned Korean discipline for destroyers and applies it to a mesh fleet will have improved its old fleet and slowed its new one. A system that, in its enthusiasm for autonomous production, abandons design maturity for crewed ships will repeat the delays and redesigns Jones documents. The capacity to hold both logics, and to know which belongs where, is the real organizational change on offer.

If KUSPI helps American yards become more productive, the supplier base deeper, and workload more predictable, Jones is right that it will have mattered. It will matter more if it also helps the United States build a fleet in which a disciplined hull carries a changing payload, built in a mix of yards and factories, with the rules of each fitted to the work it does.

Korean shipbuilders have spent decades learning how to build ships well. The open question is whether American institutions can learn which of those lessons apply to which of their ships.

What America Must Change to Make Korean Shipbuilding Matter

 

The ECB on Europe’s AI Gap

In brief

Europe has much to gain from artificial intelligence, but it is entering the AI era from well behind the United States and China. That is the message of remarks by Philip R. Lane, Member of the Executive Board of the European Central Bank, at The International AI Summit in Dublin on October 13, 2026, published by the ECB.

Lane describes AI as a general-purpose technology whose benefits depend on many actors: model developers, infrastructure builders, energy operators, the financial system, educators, and the managers and workers who must redesign how firms operate. Bottlenecks in any one of these areas can slow overall adoption (ECB).

AI is already shaping the euro area economy. Firms are set to devote around 10% of their total investment to AI this year, and AI-related lending accounts for roughly a quarter of recent credit growth to firms. In ECB surveys, 64% of firms report using AI experimentally or moderately, but only 7% report significant use. The share of workers using AI at work has doubled in two years, from 26% in 2024 to 52%. Lane says it is still too early to see a material effect on aggregate productivity, but hiring plans are muted, especially for new graduates (ECB).

The central point is the scale gap. Over the past two years, US digital investment has grown twice as fast as in the euro area, and US workers spend two to three times as much of their working week using AI. Citing the Stanford AI Index, Lane notes that the United States and China produced 59 and 35 notable AI models respectively, while France and the United Kingdom produced one each. The United States hosts 75% of global AI computing capacity; Europe hosts 5%. Lane warns that “asymmetrical AI capacity across countries may generate a host of economic and geopolitical issues” (ECB).

The gap also has financial consequences. Lane argues that the global AI investment boom is plausibly pushing up long-term interest rates. Because Europe’s AI boom is smaller, those higher rates amount to a material tightening of financial conditions in the euro area. High AI equity valuations and surging AI-related debt also pose financial-stability risks if expectations reverse (ECB).

The significance for European security is direct. Compute, frontier models and the industrial base behind them are becoming foundations of military power, from intelligence analysis to autonomous systems and decision support. A Europe that hosts 5% of global compute and produces a handful of frontier models will depend on others for capabilities central to its defense, at a time when it is trying to build strategic autonomy and a stronger European pillar in NATO.

The challenge is that Europe pays some of the costs of the AI boom, through higher interest rates and financial risk, without capturing a matching share of the gains. Closing that gap is now as much a strategic question as an economic one.

Source: Philip R. Lane, “The AI opportunity for Europe,” dinner remarks at The International AI Summit, Dublin, European Central Bank, October 13, 2026.

China’s Rise in Science as a Source of Strategic Power

10/26/2026
In brief

China is on course to lead the world in research and development, a shift with direct consequences for technological competition and the balance of global power. That is the conclusion of a news feature by Xiaoying You in Nature, published on October 14, 2026.

The scale of the change is striking. In 1978, researchers in China published fewer than 120 articles in international journals, just 0.02% of the global total. Today China leads in patent applications, dominates research in dozens of critical technologies such as nuclear energy and synthetic biology, and has overtaken the United States in papers published in influential journals. Its R&D spending has grown roughly a hundredfold over three decades, and by more than 10% a year on average over the past ten years (Nature).

In 2024, measured by purchasing power parity, China passed the United States as the world’s largest spender on R&D. Measured by exchange rates, its spending was still about half the US level, up from 8% in 2004. China now aims to raise total R&D spending by at least 7% a year through 2030. Its new five-year plan prioritizes artificial intelligence, quantum applications and controlled nuclear fusion, while, Nature notes, the Trump administration is seeking cuts to US science funding (Nature).

The feature makes clear that this is a national security project. Economist Hao Bin of Xi’an Jiaotong-Liverpool University says the pandemic and US semiconductor restrictions exposed dependence on foreign technology as a strategic weakness: “R&D spending is increasingly serving as a national security goal.” China’s state-backed semiconductor fund, launched in 2014, entered a third round in 2024 worth about 344 billion yuan (roughly $50 billion). DeepSeek’s large language model, which matched leading US tools at a fraction of the cost, is described as an outgrowth of sustained state support, and AI has become a “confidence booster” for Beijing. In space, China has completed the Tiangong station, landed a rover on the Moon’s far side, and plans crewed lunar landings by 2030 (Nature).

Wuhan University’s Zhang Lin identifies a structural advantage: a centralized system that can sustain investment in long-term priorities, while US priorities shift with political change. Yanbo Wang of the University of Hong Kong puts it bluntly: if competing with Japan in the 1980s “felt like weathering a storm, then China will bring a tsunami” (Nature).

There are weaknesses. Basic research made up just under 7% of China’s R&D budget in 2024, against 14.4% in the United States, and the 8% target in the last five-year plan was missed. A publish-or-perish culture discourages long-term, curiosity-driven work, and nearly 60% of papers retracted between 2014 and 2024 included authors with Chinese affiliations (Nature).

The significance for Western defense is that the competition is no longer only about platforms and force structure. It is about which side generates the knowledge, engineers and industrial base that produce the next generation of capability. China is treating science as a long-term instrument of national power, and the risk for the West is meeting a generational, state-directed effort with episodic, budget-cycle responses.

Source: Xiaoying You, “China’s extraordinary rise in science and how it will change the world,” Nature 658, 594–597, October 14, 2026.