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[aradar]

im playing as a goblin civilization at war with elves and also economically linked to them at the same time ??!!

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[brewer bob]

Yeah, it's normal.

The DF Wiki says about econimacal links:

An existing site may decide to "look to your thriving economy for its future prosperity" and become part of your holdings on its own. Proximity is required (within a day's travel--about 6 or less world map tiles). Economically-linked sites are not required to belong to your civilization, or even race. You can expel citizens to an economically-linked site, and send a messenger to request workers from the same site. Whether or not workers are available depends on whether there are any historical figures at the site. These can be citizens you have sent there, but can also be adventurers retired at the site, or the folks that they've been talking to. Presumably if historical figures move into a site on their own, these will also show up on the 'request workers' list.

If your fortress becomes a barony, economically-linked sites are converted to direct holdings.

And economical links as explained by Toady:

It's a weird situation; in the future economy, they'd be much more closely tied to you, but they aren't actually occupied.  So something like taking them over, or not bothering (since there'd be no reason if you can send messengers anyway), seems like it'll matter later, but for now, it would just be approximated/faked.

All sites no matter what, as long as they can communicate with you (e.g. not kobolds), get linked up to the closest market site, and that includes goblins, yeah, whether there is a war or not.  This is supposed to *actually* represent something more like incidental peasant neighbor interactions and smuggling and so forth, not an official link, but we aren't close to nuance yet.  We also don't have any nuance in what a 'war' is; is it between governments, cultures, or 'fantasy races'.  That all needs to be much better defined as well, and it doesn't help that the site entity lives partially on top of civilians and partially not.  The status/etc. release is meant to clear this up with some finality.