Chinese Military Expansion Contrasts With Declining Arms Exports

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China's Arms Sales Paradox: Military Grows, Exports Shrink Amid Purges & Quality Fears

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CNBC TV18•03-03-2026, 13:00

China's Arms Sales Paradox: Military Grows, Exports Shrink Amid Purges & Quality Fears

•China's arms export revenue dropped 10% in 2025, contrasting with South Korea (39%) and Japan (35%) growth, per SIPRI.
•Despite increased military activity, exports struggle due to deep-seated corruption, including purges of PLA officials and Norinco's CEO.
•Concerns about low technology, performance issues, spare-part supplies, and less testing plague Chinese equipment.
•Rising competition from South Korea and Türkiye, offering high technology and smoother tech transfers, impacts China's market share.
•Japan's defense revenue rose, driven by domestic demand and a stronger stance on Taiwan, further escalating regional tensions with China.

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