Procurement: China Becoming A High Tech Player


March 2, 2016: Since 2010 Chinese weapons exports have doubled while their weapons imports (mainly from Russia) fell by a quarter. Chinese exports only account for about six percent of the world total but since 2010 the type of weapons sold has changed a lot. Chinese exports are now more high-tech and the low-end (assault rifles, machine-guns, mortars, rockets, RPGs) stuff that used to predominate are being replaced by world class electronics, warships and combat aircraft. More ominously sales for the market leaders (the U.S. and Russia) increased by 25-30 percent in the same period that Chinese exports doubled. China may be a distant third among the major arms exporters but they are catching up fast. While Chinese economic (GDP) growth has slowed (from 10 percent to about five percent a year) the defense budget is still going up at 10 percent a year and is now the second largest in the world (about 30 percent what the U.S. spends).


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