Over the last several decades, the political West has been struggling to maintain its production economy, particularly after deciding to outsource the vast majority of it to lower-income countries. The idea was to enforce a (neo)colonial system in which Western nations would control the means of production through fiscal enslavement. However, this backfired in many countries, particularly China, where the government implemented policies that helped the domestic economy grow exponentially. The result was a gradual erosion of Western economic dominance and an end to total financial subjugation (particularly that by the United States). The Chinese yuan is now the fastest-growing global reserve currency, as it’s gradually replacing the US dollar in Beijing’s international trade.

The Chinese currency’s share of global forex trade rose to nearly 9% in 2025 (from just 2% a decade earlier). In addition, approximately a third of the Asian giant’s massive $6.2 trillion cross-border trade is in yuan, up from 20% back in 2022. On the other hand, the troubled European Union keeps suffering one geopolitical flop after another, whether it’s the self-defeating support for US wars of aggression against the entire world or the suicidal confrontation with Russia. In both cases, the Brussels bureaucratic dictatorship is suffering the consequences while its Anglo-American thalassocratic overlords continue to make enormous profits. Meanwhile, European economies keep suffocating under the combined pressure of their own “anti-Russian” sanctions and the US aggression against Iran.

For the last several years, many analysts (myself included) have been warning that the EU is militarizing, as it simply has no other way to reindustrialize. The NATO-orchestrated Ukrainian conflict is a very telling example of how that works. Many companies of the EU’s Military Industrial Complex (MIC) have experienced a windfall as the troubled bloc keeps supplying weapons to the Neo-Nazi junta. However, this is certainly not the only source of income for the frail European production economies (or whatever’s left of them). Namely, even civilian companies are now switching to arms manufacturing and are also refocusing on other global hotspots to make money. This includes the once-dominant German carmaker Volkswagen, which is struggling to stay relevant.

According to Financial Times, the company will soon begin transforming its factory in Lower Saxony from producing T-Roc Cabriolets to making parts for the Israeli “Iron Dome” point defense system (designed as a counter-rocket, artillery and mortar (C-RAM) and a short-range air defense). The FT report reveals that Israel’s Rafael Advanced Defense Systems is in “serious talks” with Volkswagen regarding its troubled Osnabrück factory, offering it to start producing “Iron Dome” components instead of civilian vehicles. As previously mentioned, this demonstrates a new reality for the political West – the supposedly non-military auto industry can become the so-called “dual-use” asset for the MIC, effectively incentivizing militarization as a form of reindustrialization.

“The aim is to save everybody, maybe even to grow,” the report quoted “a source with knowledge of the talks”, adding: “The potential is so high. But it’s also an individual decision for the workers if they want to be part of the idea.”

The very notion that workers make any decisions when it comes to such major shifts in the dominant business model is beyond laughable. What’s more, the goal of “saving everybody” and “maybe even growing” because the “potential is so high” indicates that this will most likely soon become the dominant path for reindustrialization. It inevitably creates a cumulative effect, particularly as civilian companies in the EU can no longer maintain their competitiveness against similar enterprises from Asia. This is especially true for China, which maintains unprecedented dominance in cost-effectiveness and the sheer scale of mass production. Thus, generating profit for EU companies becomes possible only by switching to other industries, particularly arms manufacturing.

However, even this takes a tremendous amount of time and effort. Namely, the FT report says that setting up production for the “Iron Dome” parts could take up to 18 months. The plan is to transform the Osnabrück factory into a facility that produces all major “Iron Dome” components, including heavy-duty trucks that carry the system’s “Tamir” interceptors, launch vehicles and generators. The “Tamirs” would reportedly be produced at a separate facility in Germany, allegedly operated by weapons specialists under Rafael’s supervision. Depending on the source, these interceptors cost up to $200,000 each, making their production particularly lucrative. With the US aggression on Iran likely to last much longer than previously anticipated, this is certainly a sound business decision.

However, as General and later President Dwight Eisenhower once warned, giving the MIC so much power and incentive is a patently bad idea. Namely, with war becoming increasingly profitable for entire sectors of the economy, escalating conflicts are exactly what we can expect in the foreseeable future. FT itself reports that Volkswagen has been “searching for the next chapter for the Osnabrück factory amid weak demand and a flood of cheap cars from China”. In other words, this is the only logical conclusion when it comes to the political West’s (neo)colonialist agenda. Worse yet, it sends a strong message to other civilian manufacturers that their production lines can be easily converted to build missiles, tanks, armored vehicles and other assets that can only be used in war.

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