cross-posted from: https://lemmy.sdf.org/post/46642259
New data by the Stockholm International Peace Research Institute (SIPRI) shows that while China’s arms sales revenues fell, other major producing nations posted significant growth, Japan: +40%, Germany: +36%, and United States: +3.8%
SIPRI said revenues for the world’s 100 largest defense firms rose by 5.9% to an unprecedented $679 billion in 2024, while China became the only major producer showing a downturn
SIPRI researchers said revenues for China’s top defense companies dropped 10%, citing a wave of corruption allegations that triggered internal audits, leadership purges and procurement delays across multiple military branches.
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“A host of corruption allegations in Chinese arms procurement led to major arms contracts being postponed or cancelled in 2024,” said Nan Tian, director of SIPRI’s Military Expenditure and Arms Production Program. “This deepens uncertainty around the status of China’s military modernization efforts and when new capabilities will materialize.”
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In October 2025, eight senior generals — including former vice chairman of the Central Military Commission He Weidong, China’s second-highest-ranking officer — were expelled from the Communist Party on corruption charges. Analysts say the scale of the purge has few precedents in recent military history.
China’s downturn occurred despite Beijing’s defense budget rising annually for 30 consecutive years, driven by strategic competition with the United States, tensions over Taiwan and territorial disputes in the South China Sea.
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Several of China’s largest defense conglomerates were affected, Norinco, the leading land-systems developer, reported a dramatic 31% drop to $14 billion, SIPRI said — the steepest fall among China’s top firms. CASC, China’s major aerospace and missile manufacturer, also saw declines after corruption-related leadership reshuffles triggered internal reviews and project delays. AVIC, the state-owned aviation giant responsible for fighter jets and military aircraft, recorded slowed deliveries, particularly in the PLA Air Force.
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