Russian defense industries are on a roll, thanks to continued growth in exports. In 2004, Russia sold $5.6 billion worth of weapons to overseas customers, up from $5 billion in 2003. That was an 8.5 percent increase from 2002. Most of the sales are to India and China, both nations that have long used Russian military technology. However, both nations are increasingly building their own weapons. Many Russian sales include the transfer of manufacturing technology, or assembly of the weapons locally, from components imported from Russia. In the long run, Russia is simply making potential competitors stronger.