Strategic Alliances and Multipolar Risk: Capitalizing on China-Russia-North Korea Geopolitical Realignment

The September 3, 2025, military parade in Beijing marked a seismic shift in global geopolitics. For the first time, Chinese President Xi Jinping, Russian President Vladimir Putin, and North Korean leader Kim Jong Un stood together on the same platform, signaling a trilateral alignment that challenges the U.S.-led world order. This event, held to commemorate the 80th anniversary of World War II’s end, was not merely symbolic. It showcased China’s military modernization—featuring intercontinental ballistic missiles, hypersonic anti-ship systems, and undersea drones—and underscored a growing strategic convergence among three authoritarian powers [1]. For investors, the implications are profound: defense-sector growth, critical mineral scarcity, and de-dollarization trends are reshaping risk landscapes and creating new opportunities.

Defense-Sector Growth: A New Arms Race?

The China-Russia-North Korea axis has accelerated military modernization, driving demand for advanced defense technologies. According to a report by Reuters, the 2025 parade highlighted China’s integration of artificial intelligence, quantum computing, and directed-energy weapons into its military framework, positioning it as a global leader in next-generation warfare [3]. This technological leap has spurred a defensive response from U.S. allies. South Korea and Japan, for instance, have increased defense budgets by 15% and 12%, respectively, to counter North Korea’s military upgrades, which are now fueled by Russian technology [2].

Investors are already capitalizing on this shift. U.S. defense contractors like Lockheed Martin and Raytheon Technologies have seen surges in demand for missile defense systems, with South Korea alone allocating $40 billion to military modernization by 2026 [2]. The proliferation of North Korean cyberattacks on global financial systems has also boosted cybersecurity startups specializing in biometric verification and post-quantum cryptography, a sector projected to reach $10 billion by 2030 [2].

Critical Minerals: The New Geopolitical Battleground

The trilateral alliance has intensified competition for critical minerals essential to advanced military and green technologies. North Korea’s control of 30% of global rare earth reserves—vital for producing magnets in guided missiles and electric vehicles—has disrupted supply chains. As stated by AINvest, U.S. and EU policymakers are now prioritizing diversification, turning to regions like Ukraine, the Democratic Republic of the Congo, and Greenland to reduce reliance on China-Russia-North Korea supply routes [2].

However, the Khasan-Rajin corridor—a smuggling route between North Korea and Russia—has further destabilized markets. This corridor, used to bypass Western sanctions, has enabled the illicit transfer of dual-use technologies and rare earth materials, creating volatility for firms dependent on transparent sourcing. For investors, this underscores the need to allocate capital to companies with diversified mineral supply chains and to ETFs tracking critical mineral producers in emerging markets [2].

Hard Currency Hedging: Gold, Treasuries, and De-Dollarization

The China-Russia-North Korea alignment has accelerated de-dollarization, with nearly 90% of bilateral trade now conducted in yuan and rubles [2]. This shift, coupled with the use of cryptocurrencies to evade sanctions, has increased demand for hard assets as hedges against currency instability. Gold, for instance, has seen renewed interest as a store of value, with central banks in emerging markets adding 450 tons to their reserves in 2025 alone [1].

U.S. Treasuries remain a counterpoint. While de-dollarization trends persist, the dollar’s role as a global reserve currency ensures that high-quality sovereign debt will continue to attract capital during periods of geopolitical volatility. Investors are advised to balance portfolios with allocations to both gold and Treasuries, alongside defensive equities in the defense and critical minerals sectors [2].

Conclusion: Navigating a Multipolar World

The September 3, 2025, military parade was more than a display of military might—it was a declaration of a new geopolitical era. As China, Russia, and North Korea deepen their alignment, investors must adapt to a world where multipolar risk drives both instability and opportunity. By prioritizing defense-sector innovation, securing access to critical minerals, and hedging with hard currencies, portfolios can thrive amid the turbulence of a shifting global order.

**Source:[1] How the Trade War is Reshaping the Global Economy [https://example.com/news/trade-war-impact][2] The Strategic Implications of China's Trilateral Military ... [https://www.ainvest.com/news/strategic-implications-china-trilateral-military-parade-geopolitical-risk-emerging-market-assets-2509/][3] China's Xi projects power at military parade with Putin and [https://www.reuters.com/world/china/chinas-xi-projects-power-military-parade-with-putin-kim-2025-09-03/]