According to a recently released report by the Sweden-based think tank Stockholm International Peace Research Institute (SIPRI), China’s arms sales rose by 4.8% in 2019 from its 2018 total of $56.7 billion. This was the first time that data on Chinese defence companies has been released by the institute, due to the lack of reliable data in the past.
The report was an annual ranking on the world’s top 25 largest arms manufacturing companies and featured four companies from China this year: Aviation Industry Corporation of China (AVIC), China Electronics Technology Group Corporation (CETC), China North Industries Group Corporation (NORINCO) and China South Industries Group Corporation (CSGC), which SIPRI said ranked 6th, 8th, 9th and 24th, respectively. SIPRI Senior Researcher Nan Tian said, “Chinese arms companies are benefiting from military modernization programmes for the People’s Liberation Army.”
The remainder of the list was dominated by American firms, with 12 US-based companies featuring on the list. Together, American producers account for 61% of the total arms sales on the list, while China accounts for 16%. The top five spots were also all occupied by American manufacturers: Lockheed Martin, Boeing, Northrop Grumman, Raytheon, and General Dynamics. The total registered revenue of these five alone was $166 billion in 2019.
Apart from the two superpowers, French producer Dassault Aviation Group reported the largest increase in annual arms sales, with a 105% rise due to export of its popular Rafale fighter aircraft. UAE-based EDGE was the first Middle Eastern country to also have featured on the list this time. The list also featured six Western European producers who together account for 18% of the total revenue. Almaz-Antey and United Shipbuilding were the only two Russian manufacturers to make the cut. Alexandra Kuimova, Researcher at SIPRI, attributed the lack of Russian presence to “domestic competition and reduced government spending on fleet modernization”.
China featuring prominently on the list, second only to the US, is reflective of its military rise, power projection, and geopolitical expansionism. It goes to show that China isn’t simply a big spender in defence, but also invests generously in the research and development of these goods, thus decreasing its foreign dependence. In recent years, China has been actively exporting assault rifles, ammunition, fighter planes and even submarines. Pakistan is among one of its many buyers. In the last decade, China has also increased drone deployment. These rankings only prove that China’s military intentions are impossible to ignore.
Four Chinese Defence Equipment Companies Listed in World’s Top 25 Arms Manufacturers
Four major Chinese defence equipment producers featured in SIPRI’s list of the world’s 25 largest arms manufacturers.
December 8, 2020
A military parade in celebration of the 70th anniversary of the founding of the People's Republic of China, held in Tiananmen Square in Beijing last year. SOURCE: KEVIN FRAYER/GETTY IMAGES