China’s dominance of the rare-earth mineral supply chain gives Beijing a powerful tool of economic coercion against rival states. Vital rare-earth minerals like cobalt, copper, lithium, and graphite are crucial inputs for products used in daily life and in national defense. These include electric vehicles, solar panels, military aircraft, and semiconductors. Ensuring control over the supply chains of these critical minerals is becoming a key aspect of geopolitical rivalry. 

Much of this competition is focused on Africa, which holds about 30 percent of the world’s mineral reserves. China has already secured dominant positions in essential parts of these supply chains, recognizing the strategic importance of controlling access to these critical resources. 

China produces nearly 70 percent of the world’s rare earth minerals, and has reinforced this position through deliberate efforts to control every stage of the critical mineral supply chain. This process begins long before extraction, with Chinese banks and engineering firms securing involvement. Beijing then extends that control to the project’s end, pairing ownership of mines with ownership of the railways, roads, and ports through which these materials move. The result is a supply system in which China extracts, refines, and exports minerals from Africa which ensures that, in many cases, raw materials move on Chinese terms. 

China’s dominance in the rare earth mineral trade stems from its strategic approach to mineral supply chains, not just profit. This allows Beijing to maintain long-term control of mines during economic downturns. This is a luxury that profit-driven Western competitors do not have. Chinese firms enter the market fully prepared and offers financing, workforce, equipment, and logistics that often gain significant control over project execution from the start. This strategy has helped Beijing achieve “processing dominance,” meaning control over the refining system to the point that winning a mining contract in Africa does not ensure independence from Chinese supply chains. Although China produces only about 10 percent of the world’s lithium, cobalt, and copper, it controls roughly 40-90 percent of the refining capacity for these materials. Therefore, a Western company extracting ore in sub-Saharan Africa has not truly succeeded if the ore must be processed through a Chinese refinery. For the United States, this distinction has far-reaching consequences beyond market competition. 

The U.S. is highly exposed to supply chain disruption risks because critical minerals have uses that extend far beyond consumer products. They are key components of systems essential to national defense, including F-35 fighter jets, Virginia- and Columbia-class submarines, Tomahawk missiles, radar systems, Predator unmanned aerial vehicles, and more. The U.S. maintains only one domestic rare earth mine, possesses minimal refining infrastructure, and relies on China for 70% of rare earth imports. Expanding domestic mining and refining capacity requires significant capital investment and highly specialized expertise, limiting the speed at which domestic production can realistically offset exposure risks. The result is a situation in which the U.S. defense industrial base is significantly dependent on a strategic adversary for materials it cannot easily replace, and which are essential to the production and sustainment of advanced military capabilities. 

The risks of relying on a strategic adversary like China for materials vital to American national security are clearly shown by the China–Japan Rare Earths dispute of 2010. In September 2010, a Chinese fishing boat collided with two Japanese Coast Guard ships in the East China Sea, leading to the arrest and detention of the boat’s captain. In reaction, the Chinese government stopped exporting critical minerals to Japan. Tokyo, which depended on Beijing for nearly 90 percent of its rare earth mineral imports, saw prices for these goods rise nearly 10-fold in the year after the incident. Although the United States and Japan are in different positions within global supply chains, Japan’s experience demonstrates the broader strategic dangers that arise when a country becomes heavily dependent on a geopolitical rival for key resources. 

The coercive value of rare earth dominance lies not only in China’s ability to deny access but also in the threat of disruption. Even the possibility of export restrictions can drive price volatility, delay industrial production, complicate defense procurement, and undermine long-term investment planning. Japan’s response to the 2010 dispute reveals that dependency on rare earth elements is not unavoidable. Japan’s proactive approach included investing in recycling technologies, developing alternative materials, diversifying supply chains through overseas mining projects in Australia and other countries, and building stockpiles to secure reserves. As a result, Tokyo reduced its reliance on Chinese rare earths by about 30 percent, demonstrating that policy actions can yield tangible results. More broadly, Japan’s experience underscores a key truth of modern strategic competition: dependence on an adversary for vital materials can create vulnerabilities that go beyond economics. Washington and its partners should take notice. 

Holden Johansen is an independent researcher focused on geopolitical security risks. He holds a B.A. in Political Science from Miami University and completed coursework in European Politics and Security at the Danish Institute for Study Abroad in Copenhagen. The views expressed in this article are the author’s own. 

China’s Critical Mineral Strategy and the Structure of Strategic Competition was originally published on Global Security Review.

Strategic competition in the Indo-Pacific is increasingly taking place in the “gray zone”—the space between routine state competition and open warfare. Rather than relying solely on conventional military confrontation, states are employing hybrid tactics such as economic coercion, cyber operations, disinformation campaigns, and limited military provocations to gradually shift the strategic balance in their favour.

China, North Korea, and Russia are among the most active practitioners of gray zone strategy. Their activities are deliberately calibrated to remain below the threshold that would trigger a large-scale military response, allowing a to challenge the rules-based order while avoiding outright conflict.

For policymakers and military planners, this presents a difficult dilemma. Traditional deterrence models were designed to prevent major wars, not persistent low-level coercion. As gray-zone competition intensifies across the Indo-Pacific, regional states must consider how to deter and respond to these activities without inadvertently escalating the situation.

Understanding the actors involved, and the tactics they employ, is therefore essential. The following sections outline how China, North Korea, and Russia conduct gray zone campaigns across the Indo-Pacific and how these activities collectively challenge regional stability.

China: Gradual Strategic Expansion

China arguably conducts the most sophisticated and comprehensive gray zone campaign in the Indo-Pacific. Beijing’s approach combines military presence, maritime coercion, economic pressure, and legal strategies to expand its influence while avoiding direct confrontation.

In the maritime domain, China frequently uses coast guard vessels and maritime militia to harass foreign ships in disputed waters, particularly in the South China Sea. These forces operate in ways that blur the line between civilian and military activity, allowing Beijing to apply pressure while maintaining plausible deniability.

China also conducts frequent aircraft incursions and large-scale military exercises near Taiwan, while maintaining persistent patrols around the Senkaku Islands. These operations serve multiple purposes: demonstrating military capability, testing regional responses, and normalizing Chinese presence in contested areas. Moreover, Beijing employs cyber espionage, economic coercion, and diplomatic strategies sometimes described as “lawfare,” often passing domestic laws that extend jurisdiction into contested spaces to codify expansive claims, selectively invoking international law, and using legal ambiguity to its advantage. These efforts allow China to reinforce its territorial claims and political narratives while staying below the threshold of open conflict. Over time, such actions gradually reshape the strategic environment in China’s favour.

North Korea: Coercion Through Provocation

North Korea relies heavily on gray zone tactics to pressure its opponents while avoiding the disastrous consequences of full-scale war on the Korean Peninsula.

Cyber operations are one of Pyongyang’s most important tools. Groups such as the Lazarus Group have conducted large-scale hacking campaigns targeting financial institutions, governments, and cryptocurrency exchanges. These cyber activities not only generate revenue for the regime but also demonstrate North Korea’s growing technological capabilities.

In addition to cyber operations, North Korea regularly conducts missile launches, artillery exchanges near disputed maritime boundaries, and military demonstrations aimed at raising tensions in the region. These examples are limited military provocations designed to signal resolve without triggering open conflict.

North Korea also operates extensive sanctions-evasion networks. Through covert maritime trade, smuggling operations, and cyber-enabled financial crime, the regime generates revenue while circumventing international restrictions. These activities allow Pyongyang to sustain its economy and military programs despite heavy sanctions pressure.

Taken together, North Korea’s gray zone strategy enables the regime to coerce its adversaries, generate financial resources, and maintain strategic relevance without crossing the threshold of major war.

Russia: Information Warfare and Strategic Signalling

Although Russia’s primary strategic focus lies in Europe, Moscow also conducts gray zone activities in the Indo-Pacific that challenge regional stability and Western influence.

Cyber operations remain a central element of Russia’s approach. Moscow-linked actors have been associated with intrusions targeting government systems and critical infrastructure in countries such as Japan and Australia. These operations are often accompanied by online disinformation campaigns aimed at undermining public trust and influencing domestic political debates.

Russia also engages in strategic military signalling across the region. Long-range bomber patrols and naval deployments near areas such as the Sea of Japan and the East China Sea demonstrate Russia’s military reach and reinforce its presence in the Indo-Pacific. In some cases, these activities occur alongside Chinese forces, highlighting increasing coordination between Moscow and Beijing. Such cooperation amplifies the strategic message that Russia and China are capable of jointly contesting Western and allied presence in the region.

Russia also maintains sanctions-evasion networks that facilitate illicit maritime trade, including ship-to-ship transfers involving North Korea. These networks allow Moscow to sustain economic ties while bypassing international restrictions.

The Strategic Challenge of Gray Zone Competition

Gray-zone campaigns pose a growing strategic challenge for Indo-Pacific states. Because these activities remain below the threshold of armed conflict, they are difficult to deter using traditional military tools. Yet over time, they can gradually erode regional stability and shift the balance of power. This raises an important question for policymakers: how should states respond to persistent gray zone coercion without escalating into major conflict?

One approach is to use limited, proportionate conventional responses to push back against gray-zone activities. However, such responses must be carefully calibrated to prevent unintended escalation. This is where broader strategic deterrence may play an important role.

A stronger Indo-Pacific security framework—potentially including deeper military integration among regional allies and partners—could provide the stability needed to manage escalation risks. In particular, a future Indo-Pacific nuclear security architecture could serve as a strategic backstop. As much as nuclear deterrence underpins NATO’s conventional defence posture in Europe, a similar framework in the Indo-Pacific could help ensure that responses to gray zone provocations remain limited rather than spiralling into major war.

Preparing for Persistent Competition

Gray zone competition is likely to remain a defining feature of Indo-Pacific security in the coming decades. China, North Korea, and Russia are already using these tactics to challenge the existing strategic order while avoiding direct confrontation.

For regional states, the challenge is not simply responding to individual incidents. It is developing a deterrence framework capable of managing persistent, low-level coercion across multiple domains. Without such a framework, gray zone activities will continue to stress the limits of allied resolve and gradually reshape the strategic landscape. Strengthening regional cooperation, improving resilience against hybrid tactics, and reinforcing strategic deterrence will therefore be essential steps in preserving stability in the Indo-Pacific.

Natalie Treloar is the Australian Company Director of Alpha-India Consultancy, a Senior Fellow at the Indo-Pacific Studies Center (IPSC), a Senior Analyst at the National Institute for Deterrence Studies (NIDS), and a member of the Open Nuclear Network. Views expressed are the author’s own.

Beyond a Pacific Defense Pact 2: Gray zone campaigns and activities conducted by China, North Korea, and Russia in the Indo-Pacific was originally published on Global Security Review.

Strategic competition in the Indo-Pacific increasingly occurs in the grey zone, the space between routine statecraft and open armed conflict. China, North Korea, Russia, and Iran employ a range of coercive tactics designed to alter the strategic environment without triggering a conventional military response. These activities include cyber operations, maritime harassment, disinformation campaigns, economic coercion, and limited military provocations. Because these actions remain deliberately below the threshold of war, they often exploit the reluctance of states to respond with force. As grey zone competition intensifies, the question confronting policymakers is not only how to deter such activities, but also how to ensure that responses to them are credible. In this context, a nuclear alliance could serve as the ultimate strategic backstop for military responses to persistent grey zone coercion.

Grey zone strategies rely heavily on ambiguity and escalation management. The states that employ these tactics understand that their adversaries—particularly democratic states—are cautious about escalating disputes into major military confrontations. By operating just below the threshold of armed conflict, grey zone actors seek to gradually erode the strategic position of their opponents while avoiding a decisive response. Maritime coercion in disputed waters, persistent airspace incursions, cyber intrusions, and limited military demonstrations all serve this purpose. Over time, these actions can reshape the operational environment, undermine alliances, and weaken the credibility of deterrence.

The difficulty lies in crafting responses that are both proportionate and credible. Conventional military responses to grey zone activities risk escalating a crisis if they are perceived as excessive, yet insufficient responses can embolden further coercion. This dilemma has led analysts to argue that deterrence in the grey zone requires a layered approach that combines political, economic, and military tools. However, even robust conventional responses may prove insufficient if adversaries believe that escalation dominance ultimately rests in their favor. It is in this context that nuclear deterrence retains enduring strategic relevance.

A nuclear alliance would not be designed to deter grey zone activities directly. Nuclear weapons are instruments of last resort intended to deter existential threats and large-scale conventional aggression. Nevertheless, the presence of a credible nuclear backstop fundamentally shapes the broader strategic environment in which grey zone competition occurs. By reinforcing the credibility of allied military responses, nuclear deterrence can prevent grey zone crises from escalating into major wars while simultaneously discouraging adversaries from testing the limits of conventional deterrence.

In practical terms, a nuclear alliance would strengthen escalation management in the Indo-Pacific. If regional states believed that their security rested on a collective nuclear deterrent, they would be better positioned to respond firmly to grey zone provocations. Maritime patrols, cyber countermeasures, and limited military deployments could be undertaken with greater confidence that adversaries would hesitate to escalate beyond the conventional level. In this sense, nuclear deterrence functions as a strategic umbrella under which lower-level military responses can occur without triggering uncontrolled escalation.

The experience of the Cold War offers a useful historical precedent. During that period, the North Atlantic Treaty Organization relied on nuclear deterrence to prevent large-scale aggression by the Soviet Union while simultaneously engaging in conventional competition across multiple domains. Although grey zone tactics—including espionage, proxy conflicts, and political interference—were common, the presence of a credible nuclear deterrent helped ensure that such competition did not escalate into direct war between nuclear powers. A similar logic could apply in the Indo-Pacific today.

In the contemporary regional context, a nuclear alliance could involve close coordination among the United States and key Indo-Pacific partners. Such an arrangement would not necessarily require the proliferation of nuclear weapons. Instead, it could mirror existing extended deterrence frameworks in which nuclear-armed states provide security guarantees to non-nuclear allies while maintaining operational control over nuclear forces. Through mechanisms such as joint planning, strategic consultation, and integrated command structures, allied states could strengthen the credibility of collective deterrence without undermining existing non-proliferation commitments.

Importantly, a nuclear backstop would also reinforce political resolve among allied states. Grey zone strategies often aim to exploit divisions within alliances by testing whether partners will respond collectively to incremental coercion. If adversaries perceive hesitation or disunity, they may conclude that the risks of escalation are manageable. A formal nuclear alliance could signal a high level of strategic commitment among participating states, thereby increasing the perceived costs of continued grey zone pressure.

Critics may argue that linking nuclear deterrence to grey zone competition risks lowering the nuclear threshold or introducing unnecessary escalation dynamics. These concerns highlight the importance of clearly defining the role of nuclear weapons within a broader deterrence framework. The objective would not be to threaten nuclear retaliation for minor provocations, but rather to ensure that adversaries understand that attempts to escalate beyond the grey zone could encounter a unified and credible deterrent response. In this sense, nuclear deterrence functions as a stabilizing force that sets clear limits on how far coercion can be pushed.

As the Indo-Pacific becomes the central arena of strategic competition, the persistence of grey zone tactics will continue to test existing security arrangements. States that rely solely on conventional responses may find themselves locked in a cycle of incremental coercion that gradually shifts the balance of power. By contrast, a nuclear alliance would provide a strategic foundation that reinforces the credibility of allied military responses across the escalation spectrum.

Ultimately, understanding grey zone actors and the tactics they employ is essential for effective deterrence. Yet deterrence also requires credible escalation management and the assurance that adversaries cannot exploit the space between peace and war indefinitely. In the Indo-Pacific, a carefully structured nuclear alliance could provide the strategic backstop necessary to ensure that responses to grey zone coercion remain both credible and effective while preventing escalation into catastrophic conflict.

Natalie Treloar is the Australian Company Director of Alpha-India Consultancy, a Senior Fellow at the Indo-Pacific Studies Center (IPSC), a Senior Analyst at the National Institute for Deterrence Studies (NIDS), and a member of the Open Nuclear Network. Views expressed in this article are the author’s own.

Beyond a Pacific Defense Pact 3: A Nuclear Alliance as the Ultimate Backstop to Grey Zone Coercion was originally published on Global Security Review.

5GW includes information dominance and manipulation, social engineering, economic coercion, cyber sabotage, and hybrid influence operations. It thrives on ambiguity, exploiting vulnerabilities without traditional combat. In 5GW, the lines between war and peace are blurred. No declarations, no clear enemies, just a relentless assault on stability. The goal is not to conquer land or destroy armies, but to cripple a nation’s spirit, economy, and infrastructure from within.

One of the most potent asymmetric tools of 5GW is economic manipulation. Palau, a serene archipelago of over 500 islands, were untouched by war until 2017. Palau dared to reject Beijing’s “One China Policy.” This move sent shockwaves through its fragile economy in the form of economic strangulation. In a masterstroke of economic coercion, China’s state-backed tour operators erased Palau from the Web.

Travel agencies stopped selling trips. Online searches yielded no results. Palau’s tourism industry, which accounted for 45 percent of gross domestic product (GDP), collapsed. Hotels emptied, airlines shut down, and the once-thriving economy suffocated.

This was not an anomaly, but a pattern. In 2016, South Korea agreed to facilitate the American THAAD missile defense system. China retaliated not with weapons but with economic muscle. Mysterious “fire and safety” violations suddenly appeared in South Korean businesses across China. A nine-month ban on Chinese tourism cost Seoul $6.5 billion. Retail giants like Lotte crumbled, thousands lost jobs, and yet, no war was declared.

The more interconnected the world economy becomes, the more vulnerable nations are to economic blackmail. Even Venezuela, despite its fiery anti-American rhetoric, was bound to the US economy. In 2018, despite Washington branding Nicolás Maduro a dictator and Caracas calling the US a “white supremacist regime,” the two nations still had $24 billion in trade, a quarter of Venezuela’s GDP.

Yet, when Washington imposed sweeping financial sanctions, Venezuela’s economy shrunk by 35 percent in a single year. After all, the United States does not just impose sanctions; it controls the very financial system that runs the world. The US dollar is the bloodline of global trade, and those who defy it find themselves cut off from international markets, unable to access capital or even conduct basic transactions. However, economic warfare breeds resistance.

Russia and China saw the writing on the wall. Between 2017 and 2020, Moscow slashed its holdings of US Treasury securities from $105 billion to just $3.8 billion and shifted towards China’s Cross-Border Interbank Payment System (CIPS), sidestepping American financial hegemony.

The true commanding heights of global dominance lie at the intersection of technology, finance, and unchecked ambition. China is not just selling 5G networks, it is embedding itself into the nervous system of global communication. On the other hand, the US does not just dominate finance, it controls the SWIFT banking system, ensuring economic warfare is just a sanction away. Similarly, corporations do not just innovate, they monopolize, influence, and quietly dictate policy behind closed doors.

“Surge forward, killing as you go, to blaze us a trail of blood.” A battle cry? Indeed. Not from a general on the battlefield, but from Ren Zhengfei, the founder of Huawei, a company waging a war not just against competitors but against entire nations. Britain’s telecom networks are suspected to have Chinese backdoors.

Information is now what oil was in the 1970s, a critical commodity to be controlled. Today, data is the new crude, and the battle to monopolize its flow has already begun. Quantum computing, AI, and machine learning are the new oil rigs, and the nations that dominate these technologies will dictate the future. Unlike oil, information is easily stolen, manipulated, or even weaponized in ways no physical resource ever could.

The first lethal autonomous drone strike in Libya, recorded in March 2020, was a grim reminder of what is to come. A suicide drone, powered by AI, needed no human command—just a target. Fire and forget was the name of the game. Imagine the next phase: terrorist organizations deploying AI-powered swarms, able to strike with precision, invulnerability, and zero risk to human operatives. They would not negotiate, would not retreat, and would prove hard to stop.  

In a world where biological warfare is outlawed, the selective control of food, aid, and healthcare has replaced mass destruction with slow, calculated suffocation. Nations can now deny access to the very essentials of life to break their adversaries in a siege without walls and a war without battlefields. Over 40 percent of the world’s population faces water scarcity, and by 2030, drought could displace 700 million people. The Turkish-backed militias that had control over the Alouk water station in Syria in 2020 was a stark reminder—when resources are weaponized, suffering becomes policy.

Interestingly, the battle of perception is gaining momentum more than ever. In an era of clickbait headlines and disinformation campaigns, lies travel faster than truth. The Massachusetts Institute of Technology found that false news spreads 70 percent faster than real news. From the Soviet KGB planting the rumor in the 1980s that the US government created AIDS to modern deepfake propaganda, deception is the new artillery.

Even culture is not immune. Hollywood exported American ideals, Bollywood spread Indian influence, and K-pop turned South Korea into a global powerhouse. For instance, the Cold War was not just won by missiles, it was won when a West German band sang “Wind of Change,” which then became the anthem of the Berlin Wall’s collapse.

If hunger, water, and financial systems hare already weaponized, the next battlefield is clear—space and the seabed. Subsea communication cables are responsible for carrying 97 percent of global data traffic and are the arteries of the modern economy. They enable over $10 trillion in financial transactions every single day. Yet, these vital lifelines remain shockingly unprotected and are vulnerable to sabotage, espionage, and strategic disruption. A targeted attack on just a handful of these cables could cripple stock markets, paralyze banking systems, and sever military command structures—all without a single warship being deployed.

Meanwhile, the race for space dominance is accelerating. From $63.66 billion in 2024 to an estimated $74.4 billion by 2028, the global military satellite market is growing, fueled by the realization that power no longer lies in boots on the ground, but in eyes in the sky. Satellites provide precision-strike capabilities, secure communication, and real-time battlefield intelligence. The Pentagon warns that the US is already vulnerable, with China and Russia developing anti-satellite (ASAT) weapons.

In this realm, one can say that modern states wage wars without battlefields, where the goal is not to destroy but to subdue—crippling economies, infiltrating cyber networks, and manipulating narratives without a single shot fired. What is never openly begun is rarely officially ended. In 5th-generation warfare, silence is a weapon, perception is the battlefield, and survival means accepting that war never truly ends.

Syeda Fizzah Shuja is a Research Associate at Pakistan Navy War College and an Mphil scholar in Peace and Counter Terrorism. Her work focuses on hybrid warfare and maritime terrorism. She can be contacted at fizzasyed2k@gmail.com.

The 5GW Playbook: Silent Wars and Invisible Battlefields was originally published on Global Security Review.