US EditionChina's military firms struggle as corruption purge bites, report says
China’s top military firms saw a 10% revenue drop in 2024 due to corruption investigations delaying contracts, making Asia-Oceania the only region with declining arms sales, SIPRI found.
- A Dec 1 report by SIPRI found revenues at China’s giant military firms fell 10 percent last year as corruption purges slowed contracts.
- Nan Tian said a host of corruption allegations in China's arms procurement led to major contracts being postponed or canceled in 2024, while eight top generals including He Weidong were expelled on graft charges in October.
- Revenue fell at AVIC, Norinco and CASC, while the world's 100 largest arms firms rose 5.9 percent to a record $679 billion, SIPRI found.
- The slowdown deepens uncertainty around when new capabilities will materialize, adding to doubts about the People's Liberation Army's 100th anniversary readiness, SIPRI researcher Xiao Liang warned timelines could be exposed.
- In the medium and longer term, SIPRI expects sustained investment to continue despite program delays, as China’s buildup delivers naval and coast guard fleets, hypersonic missiles, nuclear weapons and drones.
18 Articles
18 Articles
Corruption Crackdown Stalls China's Military Revenue Growth
Corruption Crackdown Stalls China's Military Revenue Growth China's giant military firms witnessed a significant revenue decline due to widespread corruption purges that disrupted arms contracts and procurement processes, a leading conflict think tank has revealed.This downward trend stands in stark contrast to robust revenue growth observed among major global arms and military-services companies, driven by persistent conflicts in regions such a…
China’s Military Suppliers Hit by Corruption Purge, Report Says
Corruption purges in China have undermined the business dealings of the country’s biggest defence firms. A study released on Monday by a leading conflict think tank found a drop in arms contracts and procurement last year. The Chinese declines contrast with strong revenue growth globally for big arms and military services companies, fuelled by wars in Ukraine and Gaza, and global and regional tensions, research by the Stockholm International Pea…
PEKIN.- The revenues of China’s main military conglomerates fell last year due to the impact of a broad anti-corruption purge that delayed contracts and arms acquisition processes, according to a report released this Monday by the Stockholm International Institute for Peace Studies (SIPRI). The setback contrasts with the strong growth recorded by large global defence companies, driven by wars in Ukraine and Gaza and regional tensions. “A series …
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