China’s arms exports grow rapidly

BOFIT Viikkokatsaus / BOFIT Weekly Review 2016/08

According to the new data by the Stockholm International Peace Research Institute (SIPRI), China has established itself as the world’s third-largest arms exporter, after the US and Russia. China’s arms exports increased by 88 % from 2006–2010 to 2011–2015. The country’s share of international arms exports grew from about 4 % in the latter half of the previous decade to about 6 % in the first half of this decade. Some 35 % of China’s weapon exports go to Pakistan, 20 % to Bangladesh and 16 % to Myanmar.

With China increasing its own arms production capabilities, the volume of arms imports fell by about 25 % in 2011–2015 compared to the previous five-year period. Although the country’s share of global arms imports has declined below 5 %, it is still the world’s third-biggest weapons buyer after India (14 %) and Saudi Arabia (7 %). China is still dependent on foreign technology for air defence, helicopters and cargo aircraft, as well as aircraft and ship engines. Engines accounted for about a third of arms imports.

Last year, China agreed to buy from Russia sophisticated air-defence missile systems and 24 Su-35 fighters – the first international sale of these fighters. The fighter sale is valued at $2 billion. SIPRI reports that despite a long-term decreasing trend, Russia still supplies 59 % of China’s arms imports, while France accounts for 15 % and Ukraine 14 %.

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