Governing Trusted Supply Chains: Public-Private Coordination in an Era of Geoeconomic Competition - Center for International Private Enterprise
AI Analysis
A new report from the Center for International Private Enterprise analyzes how Australia, Finland, and South Korea are building 'trusted supply chains' in response to increasing geoeconomic competition. These nations are prioritizing economic resilience and reducing reliance on potentially adversarial sources for critical technologies, including AI and drones. The report highlights the growing alignment with US strategies for securing key industries.
Key Takeaways
- Geopolitical factors are increasingly overriding economic efficiency in global trade and technology flows.
- The US and its allies are prioritizing 'trusted supply chains' as a core component of economic security policy.
- Australia, Finland, and South Korea are actively reinforcing their industrial bases in high-tech and dual-use sectors.
- Drones are specifically identified as a key sector requiring supply chain security measures.
- National strategies, institutional capacity, and US partnerships are shaping approaches to securing critical technologies.
Why It Matters
This trend signals a significant shift towards protectionism and industrial policy focused on strategic technologies like drones. It will likely lead to increased government intervention in supply chains, potentially impacting costs and innovation, and accelerating the development of independent, allied supply networks for critical defense-related technologies.
Governing Trusted Supply Chains: Public-Private Coordination in an Era of Geoeconomic Competition - Center for International Private Enterprise
- Governing Trusted Supply Chains: Public-Private Coordination in an Era of Geoeconomic Competition Evidence and Lessons from Australia, Finland, and South Korea Download
Geopolitics is rewriting the rules of the global economy. Trade, investment, and technology flows are increasingly shaped by security imperatives—not just efficiency or market logic. The long-standing assumption that economic interdependence would foster stability has given way to a more contested landscape defined by strategic competition, selective decoupling, and the growing use of economic tools for national security purposes. In this new environment, trusted supply chains have emerged as a cornerstone of economic security policy for the United States and its allies.
This report explores how that shift is unfolding in practice and what it means for governments and firms operating in strategic and dual-use sectors. Focusing on Australia, Finland, and South Korea, it draws on national policy frameworks, firm-level survey data, and targeted case studies to examine how trusted supply chains are being built—and where implementation challenges persist.
Despite differences in geography, history, and institutional structure, all three countries are converging on a shared priority: strengthening economic resilience and reducing exposure to geopolitical risk. Each is navigating complex relationships with major powers while working to secure critical industrial capabilities and safeguard supply chains in key sectors.
By comparing these cases, the report highlights how trusted supply chains are being operationalized across diverse national contexts. It also provides a closer look at how governments and firms are reinforcing industrial bases in high-tech and dual-use sectors, including artificial intelligence (AI) and drones. Ultimately, the analysis underscores how national strategies, institutional capacity, and partnerships with the United States are shaping different—but increasingly aligned—approaches to securing the technologies and industries that will define the next phase of global competition.
Published Date: May 22, 2026