Rethinking defense: What Europe and NATO can learn from China's global military logistics and use of AI

From civil-military integration to AI: How China is revolutionizing its logistics strategy and inspiring Europe

This article analyzes China's advanced global and innovative military logistics and identifies transferable lessons for European defense logistics. Given the evolving geopolitical landscape, robust and adaptable logistics are a strategic imperative for Europe. China demonstrates principles through its long-term planning, comprehensive civil-military integration for resource optimization, rapid technological adoption—particularly in artificial intelligence (AI)—and the establishment of a global logistics presence. These principles can serve as inspiration for Europe, adapted to its own values ​​and structures. A direct adoption of the state-driven Chinese model is neither feasible nor desirable. Nevertheless, the underlying strategic approaches offer valuable paradigms. Key recommendations for Europe include the immediate harmonization of cross-border military transport, the piloting of joint logistics hubs involving the private sector, and the acceleration of data interoperability. In the long term, strategic investments in critical dual-use infrastructure, the development of a pan-European defense logistics industrial and technological base, and the cultivation of a deep-rooted culture of jointness are essential. The goal is a coherent, technologically advanced, and resilient European logistics framework.

The changing landscape of Chinese military logistics: Global reach and innovation

Pillars of the logistical modernization of the People's Liberation Army: From doctrine to "intelligentization"

The comprehensive modernization of the People's Liberation Army (PLA), which began in the late 1970s, has been significantly accelerated under Xi Jinping, with a revised target of completion by 2035. This modernization includes profound reforms: the disentanglement of the military from civilian politics, a reorganization into branch commands (Theatre Commands) to improve joint operations, a reduction in personnel toward a leaner force, and an emphasis on combined arms warfare. The doctrinal development toward "people's warfare under modern conditions," which emphasizes forward defense and combined arms tactics, has served as a driving force for the transformation of logistics.

A key aspect is the focus on domestic equipment production and technological upgrades. This is manifested in the introduction of advanced vehicles such as the Type 15 tank and the ZBD-04 infantry fighting vehicle, as well as the use of unmanned aerial vehicles (UAVs) for rapid critical air support, demonstrating a clear commitment to self-sufficiency and high technology.

Central to the current phase of modernization is the concept of "intelligentization" (智能化), particularly the integration of artificial intelligence (AI) into all facets of military operations, including logistics. China views AI as a strategic bet to potentially gain a technological advantage over other military powers. The transformation of the PLA from a large, somewhat outdated force to a leaner, more technologically advanced army organized under branch commands necessitates a fundamental rethinking of logistical requirements. Instead of mere mass supply, more agile, precise, and responsive support systems are now required, capable of supporting rapid deployments, distributed operations, and complex, multidimensional effects. The emphasis on "intelligentization" indicates that China views data and AI not only as efficiency enhancers for logistics but also as transformative elements that can provide a decisive operational advantage and potentially transcend traditional logistics paradigms. This implies the use of AI for predictive logistics, autonomous replenishment, and optimized resource allocation in dynamic environments.

Military-Civil Fusion (MCF): A Paradigm for Resource Mobilization and Technological Progress

Military-Civil Fusion (MCF) is an aggressive national strategy spearheaded by the Chinese Communist Party (CCP) to develop the world's most technologically advanced military by removing barriers between civilian research and economic sectors and the military and defense industry. Xi Jinping personally oversees the implementation of this strategy, which aims to enable "intelligent warfare." Key dual-use technologies targeted include quantum computing, big data, semiconductors, 5G, advanced nuclear technology, aerospace engineering, and artificial intelligence. Methods for technology acquisition are diverse and include investments in private companies, talent recruitment programs, aligning academic and research collaborations with military applications, forced technology transfer, and even theft.

Within the framework of the Military Cooperation Framework (MCF), logistics is undergoing a conceptual redefinition: "Modern logistics is military-civilian fusion logistics" (现代后勤就是军民融合后勤), whereby logistics infrastructure facilities are treated as dual-use assets serving both economic and defense policy objectives. Private logistics companies such as SF Express, YTO Express, and China Post Express & Logistics are obligated to support national defense and participate in military logistics pilot projects and the development of corresponding infrastructure. SF Express, for example, has an extensive network of over 950 overseas warehouses worldwide, including seven in key US cities, whose dual-use potential is evident.

The Military Cooperation Framework (MCF) is not merely a cooperative effort, but a state-mandated integration in which civilian actors have a legal obligation to support military objectives. This creates a vast, state-directed ecosystem for innovation and resource pooling that market-oriented economies struggle to directly counter. The dual-use nature of the targeted technologies and logistical infrastructure within the MCF deliberately blurs the lines between commercial and military activities. This makes it difficult for other nations to assess intentions and risks, particularly with regard to globally operating Chinese companies, and can provide China with strategic advantages, for example, through covert intelligence gathering or the pre-positioning of equipment under a commercial guise.

Key elements of China's military-civilian fusion (MCF) in logistics

Key elements of China's military-civilian fusion (MCF) in logistics – Image: Xpert.Digital

China's military-civilian fusion (MCF) in logistics is based on a state-led national strategy for the comprehensive integration of civilian resources for military purposes. This guiding principle is supported by a legal framework that imposes statutory defense obligations on companies and mandates participation in MCF initiatives.

The private sector plays a central role as an integral part of the MCF. Companies provide know-how, resources, and infrastructure for military logistics and potentially also serve in intelligence gathering. The technological focus is on dual-use technologies such as artificial intelligence, big data, 5G, quantum computing, semiconductors, and aerospace technologies.

In terms of infrastructure, China pursues an approach in which commercial facilities such as ports, warehouses, and transportation networks are designed and used as dual-use assets with military support. Key players include the Chinese Communist Party (CCP), the Central Military Commission (CMC), the People's Liberation Army (PLA), state-owned enterprises, and nominally "private" companies such as SF Express, YTO Express, and China Post Express & Logistics.

Power projection: China's global logistics network and dual-use infrastructure

China is pursuing a strategy to expand its global logistics presence to support its growing overseas interests. This includes foreign investment, trade routes under the Belt and Road Initiative (BRI), and the PLA's capability to operate in distant seas. The establishment of its first official overseas military base in Djibouti is a clear indication of this strategy. The base is distinguished by its strategic location and capabilities, including mechanized infantry, hangars for helicopters and UAVs, and a multi-ship pier.

Furthermore, the development and use of dual-use commercial port facilities, such as Gwadar in Pakistan and Hambantota in Sri Lanka, play a central role as hubs for naval operations, rest periods, and resupply. These developments have significant strategic implications for regional powers like India, which fears encirclement and a threat to its sea-based deterrence. Other potential locations for Chinese military bases or access points include Cambodia, Equatorial Guinea, Namibia, the United Arab Emirates, Cuba, Tanzania, and Myanmar. The primary declared mission of these overseas sites is the protection of sea-to-sea operations (SLOCs) and the support of peacetime operations, although their military utility in wartime is subject to ongoing assessment.

China's approach to establishing overseas bases often follows a "commercial-first" or "dual-use" development model. For example, the development of the port of Djibouti was preceded by the construction of the military base, and Gwadar and Hambantota are commercial ports with significant military potential. This approach confers economic influence, reduces initial political resistance from host countries, and provides a plausible excuse for denying military intentions. It is a patient, long-term strategy that allows for the gradual establishment of a presence that can later be militarized or used for military support. While the immediate kinetic benefits of these bases against a peer competitor like the United States may be limited until 2030, their strategic value lies in maintaining a peacetime presence, gathering intelligence, projecting power, protecting low-level operational bases (SLOCs), and creating dilemmas for adversaries. This gradually shifts regional power dynamics and lays the foundation for future, more robust capabilities.

European Defence Logistics: Current Capabilities, Ongoing Challenges and Strategic Imperatives

The patchwork of progress: an assessment of EU and NATO logistics initiatives

Europe has a number of frameworks and initiatives aimed at improving defense logistics, reflecting an awareness of its necessity. Within the framework of Permanent Structured Cooperation (PESCO), the "Network of Logistic Hubs in Europe and Support to Operations (NetLogHubs)" project is particularly noteworthy. It aims to establish a multinational network, building on existing capabilities, to reduce response times and increase the sustainability of operations. Other PESCO projects, such as "Strategic Airlift for Outsized Cargo," address specific capability gaps.

The EU's Military Mobility Action Plan 2.0 (MMAP 2.0) aims to enable the rapid and seamless deployment of personnel and equipment. Achievements include the funding of approximately €1.7 billion for dual-use infrastructure projects, the revision of the TEN-T regulations to incorporate military requirements, and efforts to simplify cross-border authorization procedures. The European Defence Agency (EDA) supports Member States in standardizing logistics capabilities, developing logistics hubs, exploring new technologies such as additive manufacturing (AM), and improving security of supply (SoS) through framework agreements.

Within NATO, the Readiness Action Plan (RAP) was initiated after 2014, the Very High Readiness Joint Task Force (VJTF) and the NATO Response Force (NRF) were strengthened, and new battlegroups were established on the eastern flank. In May 2024, the NATO Logistics Action Plan was adopted to drive changes in the areas of maintenance, supply, stockpiling, and medical support. Initiatives such as LOGFAS and the JEDI concept aim to improve data interoperability.

Despite this multitude of initiatives, European efforts in defense logistics appear fragmented. A single, overarching strategic authority or a sufficiently empowered coordinating body is often lacking, which can lead to duplication of effort, inefficiencies, and slower progress than a more unified system would allow. Project management at PESCO varies considerably, and some projects fall short of expectations. A report by the European Court of Auditors (ECA) points to “complex governance structures” and the absence of a central point of contact for military mobility at EU level. Many European initiatives also rely heavily on “dual-use” concepts. While pragmatic, this may not fully address purely military requirements or the scale necessary for high-intensity conflicts, particularly given funding constraints and competition with civilian priorities. The Connecting Europe Facility's (CEF) focus on dual-use infrastructure, rather than purely military infrastructure, which remains urgently needed, is one example.

Overview of current European defence logistics initiatives and identified gaps

Overview of current European defense logistics initiatives and identified gaps – Image: Xpert.Digital

Current European defense logistics initiatives demonstrate both significant progress and considerable challenges. The EU-led PESCO NetLogHubs project aims to create a multinational network of logistics hubs to reduce response times and increase sustainability. Although the project is actively pursued and builds on existing capabilities, problems arise from varying levels of commitment among member states and slow progress in ensuring interoperability and actual use.

The EU Action Plan on Military Mobility (MMAP 2.0) aims to enable the rapid and seamless deployment of personnel and equipment through infrastructure improvements. With approximately €1.7 billion allocated to dual-use infrastructure projects, progress on the TEN-T revision, and cross-border authorizations, significant milestones have already been achieved. Nevertheless, substantial funding gaps remain, as the budget is quickly exhausted, bureaucratic hurdles persist, and complex governance without a central point of contact slows implementation.

The EDA Security of Supply initiative focuses on ensuring security of supply and building trust between member states. Despite established framework agreements and the promotion of cross-border industrial cooperation, the voluntary nature of these agreements remains problematic, and there is a need to further strengthen trust and ensure their application in times of crisis.

In the area of ​​EDA logistics standardization and technology, the standardization of logistics capabilities and the exploration of new technologies such as additive manufacturing are being promoted. While supporting member states in developing coherent capabilities and initiating AM projects represent positive developments, the broader implementation and funding of new technologies, as well as ensuring compatibility with NATO standards, requires further efforts.

The NATO Logistics Action Plan, adopted in May 2024, aims to improve maintenance, supply, stockpiling, and medical support, and drives adaptations for collective defense. The challenges lie in long-term implementation and financing, ensuring interoperability among allies, and adapting to rapidly changing threat landscapes.

Finally, NATO LOGFAS and JEDI are working to improve data interoperability for multinational logistics operations. While LOGFAS functions as an established NATO system and JEDI-X serves as a bridging solution for integrating national US systems, challenges persist regarding data compatibility and process fragmentation between national systems and LOGFAS, highlighting the need for widespread acceptance and use of standardized data formats.

Critical deficiencies: Infrastructural bottlenecks, bureaucratic hurdles and interoperability gaps in NATO/EU nations

European defense logistics suffers from a number of critical deficiencies that significantly limit its effectiveness. In the area of ​​infrastructure, there is a chronic underfunding of dual-use and purely military infrastructure. The Connecting Europe Facility (CEF) military mobility budget of €1.7 billion was exhausted by the end of 2023 and fell significantly short of the originally proposed €6.5 billion. The European Investment Bank (EIB) estimates an annual investment requirement of €80 billion for transport infrastructure alone. Physical limitations such as narrow roads, insufficient rail capacity, different track gauges (e.g., delays in Rail Baltica), bridges not designed for heavy loads, and a shortage of specialized railcars exacerbate the situation. Furthermore, there is a strategic vulnerability due to inadequate transport and storage capacities, particularly in the energy sector. The need to upgrade ports, railways, and airports for heavy military equipment is especially evident in regions such as the Black Sea.

Bureaucratic and regulatory hurdles represent another major problem. Permits for cross-border military movements can take up to 45 days. "Bureaucracy" is cited as the main obstacle. Differing national regulations, for example, for the transport of dangerous goods or weight restrictions for tanks, as well as incomplete implementation of harmonized procedures, hinder rapid deployments. The lack of a central contact point for military mobility at the EU level and complex governance structures contribute to the slowdown.

In the area of ​​interoperability, NATO faces ongoing challenges in the technical (e.g., secure communication, common fuels), procedural (doctrine, terminology), and human dimensions (language, trust). There is a lack of agreed-upon formats and standards for data collection, as well as common assessment tools. Logistical interoperability is explicitly identified as a challenge, and efforts such as LOGFAS/JEDI-X to bridge gaps highlight the existing problems. Further challenges include insufficient strategic airlift capabilities (aging An-124s within the SALIS program), excessive reliance on the private sector for transport, which is problematic in wartime, and a fragmented defense industry base that is unable to scale rapidly or close capability gaps.

The post-Cold War era of the “peace dividend” led to systematic underinvestment in defense infrastructure and the dismantling of robust military logistics structures. The consequences are clearly visible today. Reversing this requires not only financial resources but also a generational shift in mindset and priorities. Bureaucratic and regulatory hurdles are not merely administrative inconveniences but significant operational obstacles that an adversary could exploit. They reflect a lack of political will or effective mechanisms at the EU/NATO level to enforce standardization and harmonization across member states, even though technical solutions are often available. The lack of technical and data interoperability severely limits the ability to conduct truly integrated multinational operations and utilize modern data-driven logistics. This is a critical vulnerability at a time when information superiority and speed are paramount, especially in light of China’s “intelligent” ambitions.

The imperative for improved European strategic autonomy in defense logistics

Robust, autonomous logistics capabilities are fundamental to Europe's credibility as a security actor and its ability to act independently when necessary. The war in Ukraine has underscored the critical importance of logistics and resupply, which potentially represent Europe's greatest weakness in a major conflict. The EU's pursuit of greater strategic autonomy cannot be achieved without self-sufficient and resilient logistics. The European Defence Industry Strategy (EDIS) aims to support this.

Dependence on external actors, such as the US for strategic airlift or non-EU commercial companies for transport, creates vulnerabilities. The need to rebuild Europe's defense industry base to support sustained conflicts and reduce external dependencies is of paramount importance. This includes ensuring security of supply within Europe.

True European strategic autonomy in defense is unattainable without prior logistical autonomy. A military force that cannot independently deploy, resupply, and redeploy is fundamentally dependent on others, regardless of its combat capabilities. Even if Europe possesses advanced weapons systems, its strategic autonomy will remain largely a pipe dream if it cannot effectively and independently move and resupply its armed forces. However, the pursuit of strategic autonomy in logistics, if not carefully managed, can create tensions with NATO, particularly regarding resource allocation, standardization, and defense-industrial policy. Nevertheless, a more logistically capable Europe ultimately strengthens NATO. A Europe with stronger, more autonomous logistical capabilities would be a more capable partner within NATO, better able to contribute to collective defense and relieve pressure on the United States. The key lies in complementarity, not competition.

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Dual-use logistics experts - Image: Xpert.Digital

The global economy is currently undergoing a fundamental transformation, a watershed moment that is shaking the foundations of global logistics. The era of hyper-globalization, characterized by the relentless pursuit of maximum efficiency and the "just-in-time" principle, is giving way to a new reality. This new reality is marked by profound structural breaks, geopolitical power shifts, and increasing fragmentation of economic policy. The once taken-for-granted predictability of international markets and supply chains is dissolving and being replaced by a period of growing uncertainty.

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Lessons from Beijing: What Europe can adapt from the Chinese logistics model

Strategic coherence and long-term vision in logistics development

China's approach to modernizing the PLA, including its logistics, is a decades-long, centrally directed endeavor with clear objectives and timelines, as exemplified by the target year of 2035. Logistics is an integral part of this strategic planning and not an afterthought. The Central Military Commission (CMC) ensures unified leadership. For Europe, this means that a more unified, long-term strategic vision for defense logistics is needed, one that transcends national interests and short-term budget cycles. While a single "European CMC" is unrealistic, stronger coordinating bodies with greater authority within EU and NATO structures are necessary to promote coherence and counter fragmentation.

China's ability to define and pursue long-term strategic objectives in logistics, backed by political will and resources, stands in stark contrast to Europe's often reactive and incrementally funded approach. European funding cycles, such as the Multiannual Financial Framework (MFF), are more short-term and subject to political negotiations, leading to funding gaps. PESCO projects suffer from varying levels of commitment from member states. Europe needs to develop a more campaign-oriented strategic planning mindset for critical capabilities like logistics. This would involve setting clear, multi-decade-spanning strategic objectives for European logistics, identifying the necessary resources, establishing committed governance, and ensuring sustained political support.

Utilizing dual-use capabilities and civil-military synergies (A European “MCF light version”?)

China's Military Cooperation Framework (MCF) systematically integrates civilian research, commercial sectors, and infrastructure into military development. Private companies are legally obligated to support the Civil Defense. Europe, without adopting China's coercive model, can more systematically identify and promote dual-use synergies. This requires cultivating deeper, more strategic public-private partnerships (PPPs) for logistics, research and development, and infrastructure development. Clear frameworks, risk sharing, and the attractiveness of defense contracts are crucial to addressing the existing dependence on the private sector and underfunded infrastructure.

Europe's current PPPs are often transactional or project-specific. A "European MCF light version" would involve creating long-term strategic partnerships with key industries (logistics, technology, manufacturing). The aim would be the joint development of capabilities, ensuring security of supply, and unlocking civilian innovation pipelines for defense logistics, potentially through dedicated EU/EDA programs with clear incentives and long-term commitments. This would go beyond current dual-use financing or ad-hoc PPPs and could include strategic dialogues, co-investment in R&D for logistics technologies, preferential access agreements during crises, and potentially regulatory frameworks that encourage private sector support for national/EU security objectives in critical areas, balanced with market principles.

Leveraging technological innovation: AI, data analysis and automation in logistics

The VBA is investing heavily in "intelligent technology" and using AI for situational awareness, decision-making, unmanned systems, and logistics, as it sees AI as a means to catch up technologically or even surpass existing technologies. The successes of commercial AI-powered logistics serve as a model. For Europe, this means accelerating the introduction of AI, big data analytics, and automation (e.g., unmanned ground/air vehicles for resupply) in defense logistics. This requires targeted R&D funding, common data standards, and testbeds for new technologies. The EDA's research into additive manufacturing is a good start, but it needs broader application to close technical interoperability gaps and keep pace with technological advancements.

China’s “intelligent” efforts aim for a fundamental transformation of warfare, including logistics. By contrast, Europe’s adoption of AI in defense logistics appears more gradual. Failure to match China’s pace and ambitions in AI-driven logistics could result in a significant capability gap affecting everything from deployment speed and supply efficiency to operational resilience. Europe needs a committed, well-funded “smart logistics” strategy, not just isolated projects, to avoid falling behind in this critical capability area. This requires, first and foremost, the availability of standardized, accessible, and secure data—a fundamental prerequisite for the effective use of AI at the coalition level.

Key Chinese innovations in military logistics and potential European applications

Key Chinese innovations in military logistics and potential European applications – Image: Xpert.Digital

Chinese military logistics innovations offer important approaches for European applications. In the area of ​​AI-supported predictive maintenance, China uses artificial intelligence to forecast maintenance needs for weapons systems and vehicles. Europe could implement AI-based systems for monitoring military equipment to optimize maintenance cycles and reduce downtime. This requires common data standards, secure data platforms, and investments in AI software and trained personnel.

For autonomous supply systems, China uses UAVs for critical air support and humanoid robots in hazardous environments. Europe could develop autonomous land and air vehicles for resupply in conflict zones and utilize robotics for warehousing. This requires R&D funding for robotics, legal frameworks, and interoperability standards.

In the field of big data, China uses AI to process enormous amounts of data for complex situational awareness. Europe should establish a common, secure data analytics platform to optimize supply chains and enable real-time planning. This requires data-sharing agreements, NATO/EU-wide standards, and investments in big data infrastructure.

MCF-driven research and development systematically integrates civilian research into military development. Europe could strengthen strategic partnerships with the private sector and create incentives for dual-use innovations. Clear legal frameworks for public-private partnerships and long-term funding commitments are necessary.

China's integrated civil-military logistics infrastructure utilizes civilian ports and transport networks for military purposes. Europe should systematically plan for dual-use infrastructure and integrate civilian logistics providers into crisis response plans. This requires increased investment in dual-use infrastructure and clear agreements with private operators.

Development of resilient and distributed logistics networks

China is expanding its global logistics infrastructure, including dual-use ports and warehouses (e.g., the SF Express network, Djibouti, Gwadar, Hambantota). This creates redundancy and multiple access points. Europe needs to improve the resilience and distribution of its logistics networks. This includes hardening critical infrastructure, developing more distributed logistics hubs (according to NetLogHubs), and ensuring alternative supply routes and means of transport. Pre-positioning inventory and equipment is also crucial to address vulnerabilities in European infrastructure and increase resilience to disruptions.

China's distributed network, while partly serving power projection, inherently creates resilience. Europe's current logistics infrastructure, often concentrated and with known bottlenecks, is more vulnerable. A European strategy must prioritize identifying and mitigating single points of failure and develop a logistics system that is more network-based than purely hub-and-spoke. This requires not only more hubs, but also robust connections and alternative transport options between them to reduce vulnerability to attacks or natural disasters.

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Strategic pathways to strengthening European defense logistics

Phase 1: Immediate strategic steps for quick wins (next 1-3 years)

Streamlining cross-border deployment: A “Military Schengen 2.0”

One of the biggest, yet most readily addressable, obstacles is the slow and bureaucratically complex handling of cross-border military transports. As an immediate measure, the full, harmonized implementation of existing Technical Arrangements (TAs) for land, air, and sea movements should be aggressively pursued. A high-level EU/NATO task force could be established to identify and remove remaining regulatory and bureaucratic roadblocks within 12-18 months. The goal must be a notification and authorization system that enables military deployments in crisis situations within 24 to 48 hours. This addresses a persistent problem whose solution, while politically challenging, is not primarily capital-intensive. Success here would generate momentum and credibility. Achieving a genuine “Military Schengen” requires not only harmonized rules, but also a change in mentality towards a “default-to-yes/expedite” culture in national bureaucracies during crises, supported by strong political mandates.

Piloting of shared dual-use logistics hubs and technology testbeds (Inspired by NetLogHubs & MCF)

Building on the PESCO project NetLogHubs, expanded pilot hubs should be established at 2-3 strategic locations (e.g., the eastern flank, Central Europe, the southern flank/port). These hubs should explicitly include civilian logistics providers – a lesson learned from the effectiveness of the Chinese MCF, but on a voluntary basis – and serve as testbeds for new logistics technologies such as AI, automation, and additive manufacturing. Dedicated seed funding from the EU/NATO would be necessary for this. Such pilot projects would provide tangible demonstrations of improved cooperation, test new concepts in a controlled environment, and generate practical experience, thereby addressing infrastructure gaps and fostering innovation. These pilot hubs could develop into centers of excellence, not only for warehousing and transit, but also for training, doctrine development, and the promotion of civil-military logistics innovation ecosystems.

Improving data interoperability: Introduction of standardized platforms and AI-supported analytics (learning from LOGFAS/JEDI-X and the “intelligentization” of VBA)

The use of NATO LOGFAS or a compatible standard should be mandatory for all multinational operations and exercises. The development and implementation of solutions like JEDI-X to bridge national systems must be accelerated. In parallel, investment is needed in a common, secure data analytics platform for logistics that integrates AI tools for predictive maintenance, demand forecasting, and route optimization. This addresses critical interoperability gaps within NATO and forms the basis for any future "smart logistics" in Europe. However, true data interoperability requires more than just common software; it necessitates shared data ontologies, security protocols, and a willingness to exchange data, which requires overcoming national reservations and investing in a robust, secure cloud infrastructure for defense.

Phase 2: Sustainable development for long-term resilience and capabilities (3-10+ years)

Strategic investments in critical dual-use infrastructure: closing gaps and ensuring resilience

A significantly larger, dedicated European Defence Infrastructure Fund is needed, building on the CEF's military mobility facility but with considerably more resources, as has been repeatedly called for. Projects should be prioritized based on strategic military requirements (identified corridors, modernization of ports/airfields) and resilience aspects (hardening, redundancy). Civilian and military planning for new infrastructure must be integrated from the outset. This addresses the core problem of underfunded and inadequate infrastructure and requires a long-term commitment. Such infrastructure investments must be threat-informed and future-proof, taking into account not only current gaps but also evolving threats (cyber, physical attacks), the impacts of climate change, and the needs of future military equipment.

Promotion of a pan-European defense logistics industrial and technology base

The frameworks of the EDIS and the EDA should be used to promote collaborative R&D in logistics technologies (AI, robotics, advanced materials, AM). Incentives should be created for the joint procurement of logistics platforms and systems, and European champions in key logistics technology areas should be developed. Security of supply for critical components from European sources must be guaranteed. This reduces external dependencies, strengthens strategic autonomy, and stimulates innovation while consolidating the fragmented European defense industry. Building such a foundation requires overcoming national protectionism and promoting genuine cross-border industrial cooperation, potentially through harmonized defense procurement regulations and common IP frameworks for collaborative projects.

Cultivating a culture of jointness and interoperability across national armed forces

The scope, reach, and complexity of joint logistics exercises within the NATO and EU frameworks must be increased. Permanent multinational logistics units, extending beyond the components of the VJTF/NRF, should be established. The training and certification of logistics personnel must be standardized, and personnel exchange programs should be promoted. This addresses gaps in human and procedural interoperability and builds trust and common understanding. True jointness in logistics goes beyond shared equipment; it requires a common operational culture, common doctrines, and authorized multinational command structures—a long-term cultural transformation process.

Developing robust public-private partnerships for logistics support and innovation

Clear legal and financial frameworks must be established for long-term public-private partnerships (PPPs) in defense logistics, defining roles, responsibilities, and risk sharing. Incentives must be created for private investment in dual-use logistics capacities and innovations. Mechanisms for prioritizing military needs in crises, while simultaneously maintaining attractiveness for commercial partners, must be ensured. This will unlock the efficiency and innovative capacity of the private sector and address problems of overextension and availability in wartime. Successful PPPs in defense logistics require a shift from purely transactional relationships to strategic partnerships, where the private sector is viewed as a co-developer of capabilities and resilience, not merely as a service provider.

Addressing the specific challenges of NATO member states: Tailor-made approaches within a unified strategy

Although a unified European strategy is needed, its implementation must be flexible enough to take into account the different geographical, infrastructural, economic and political realities of the individual NATO/EU member states.

Eastern Flank Nations: The focus should be on rapid reinforcement capabilities, robust host nation support infrastructure, pre-positioning of assets, and defense against A2/AD challenges. Rail Baltica is a key project in this regard.

Hub nations (e.g. Germany, Netherlands): The focus is on modernizing the transit infrastructure (rail, road, ports, airports), streamlining customs and approval procedures, and functioning as central logistics hubs.

Southern flank nations: The focus should be on maritime logistics, port infrastructure, and capabilities to support operations in the Mediterranean and Africa.

Nations with a strong industrial base: Can be leaders in the development and production of advanced logistics technologies and platforms.

Nations with limited resources: Can contribute niche capabilities or specialize in specific logistics functions as part of a burden-sharing arrangement.

A one-size-fits-all approach will fail. Tailor-made solutions enable efficient resource utilization and the leveraging of national strengths. A successful pan-European logistics strategy requires a sophisticated model of burden-sharing and specialization, in which nations contribute based on their capabilities and geostrategic location, coordinated by a central mechanism (EU/NATO) that ensures collective needs are met. This is politically complex, but essential for efficiency and fairness.

Matrix of European/NATO logistics challenges and proposed China-inspired solutions/first steps

Matrix of European/NATO logistics challenges and proposed Chinese-inspired solutions/first steps – Image: Xpert.Digital

The matrix of European and NATO logistics challenges and the proposed, China-inspired solutions identifies several critical areas where improvements are needed.

Regarding the slow cross-border movement of troops and equipment, the proposed approach is based on China's centralized coordination and focus on efficiency. A "Military Schengen 2.0" is proposed as a European solution, encompassing the harmonization of transport permits, a task force to remove blockages, and 24- to 48-hour crisis authorizations. These measures are to be implemented by all EU and NATO member states and their respective bodies.

The infrastructure deficits, manifested in inadequate, outdated facilities and bottlenecks, are to be addressed through an approach modeled on China's military-civilian fusion of dual-use infrastructure and state-directed strategic investments. The proposal includes piloting joint dual-use logistics hubs and, in the long term, establishing a European Defence Infrastructure Fund for strategic projects. Hub nations, the eastern and southern flanks, and EU institutions such as the CEF, EIB, EDA, and PESCO are to play a leading role in this endeavor.

The technological lag and slow adoption of AI and automation necessitate an approach modeled on China's "intelligentization" and massive investments in AI and new technologies. European solutions include technology testbeds in pilot hubs, the mandate of LOGFAS or compatible standards, and investment in a shared AI analytics platform. All EU and NATO member states, as well as the EDA, NATO ACT, and national research and development agencies, should participate.

The fragmented defense-industrial base is to be strengthened by focusing on domestic industry and military-civilian fusion to pool resources, similar to the Chinese model. Proposed measures include promoting collaborative research and development and joint procurement through EDIS and EDA, developing European champions, and securing supply chains. Nations with strong industrial bases, the EDA, and the European Commission (DG DEFIS) are to take the lead in this endeavor.

Excessive dependence on external actors and a lack of resilience are to be reduced by building a global, redundant network and emphasizing self-sufficiency, following the Chinese model. European approaches include developing robust public-private partnerships with clear frameworks, strengthening European security of supply, and building distributed logistics networks. All EU and NATO member states, the Federal Department of Foreign Affairs (FDFA), and national procurement agencies are to cooperate in this endeavor.

Finally, interoperability gaps in technical, procedural, and human aspects are to be addressed through joint operations and standardized training within the People's Liberation Army reforms. Proposed European measures include intensifying joint logistics exercises, standardizing training and certification, and establishing permanent multinational logistics units. All EU and NATO forces, as well as NATO institutions such as JSEC and MNC-NE, and the EU (EUMS), are to play a leading role in this endeavor.

Shaping a more agile and resilient European defense logistics future

The transformation of European defense logistics is urgently needed. Analysis of Chinese approaches shows that Europe can learn from certain principles: strategic long-term planning, effective civil-military synergy adapted to European values, aggressive technological innovation, and the development of resilient, distributed networks. While the Chinese model itself is not transferable to Europe, the underlying strategic impetus and determination to overcome challenges are instructive.

Implementing the proposed short- and long-term strategic pathways requires sustained political will, increased investment, and intensified cooperation among European nations, both within the EU and NATO frameworks. The specific challenges of each member state must be addressed through tailored approaches within a coherent overall strategy.

Strengthened European logistics capabilities not only enhance Europe's security but also contribute to a stronger and more balanced transatlantic partnership. Ultimately, modernizing European defense logistics is not merely a technical or financial challenge, but a profound strategic and political undertaking. It requires a paradigm shift in how Europe collectively approaches defense readiness and capability development, and the recognition that robust logistics represent a shared, vital security interest.

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