China’s Defense Industry Driven by Increasing State Funding

Published Date : Mar 21, 2016

Albany, New York, March 21, 2016: announces the addition of a new research report, titled “China Defense Industry Report: 2016 Edition.” This 64-page research publication offers readers a comprehensive evaluation of the defense industry in China, in addition to an extensive assessment of the various segments such as the nuclear industry, the shipbuilding sector, and the aviation industry. Market dynamics such as the key developments and trends and the major hurdles have been analyzed in absolute detail.

The armed forces in the People’s Republic of China – the Chinese People’s Liberation Army – functions under the Central Military Commission, which is responsible for leading the country’s armed forces and for providing unified commands. The Central Military Commission also determines the strategies to be adopted by the forces and the basic operational structure of the military. Under the General Staff Headquarters, the Chinese People’s Liberation Army has seven military regions. In December 2015, the Army revamped the structure of its department and added a new service branch – the PLA Strategic Support Force.

The defense industry in China has been benefiting what analysts and experts call the most lucrative and productive years in the history of the country. The defense sector in China is propelled by the pent-up domestic demand, the increase in state funding, and the access to and the development of much-needed technological know-how pertaining to aircraft, equipment, missiles, shipbuilding, and others. The major factors that are projected to boost China’s defense industry include the reduction in import reliance, the surge in military expenditure, the rise in exports, and rapid economic growth. Some of the significant developments in this sector are the changes in pricing models, the rise in asset injections, the growing modernization of the People’s Liberation Army, and the surge in management incentives as part of China’s state-owned enterprises reforms. However, factors such as the lack of global competencies and the relatively lower profitability threaten to hamper the growth of the defense industry in China.

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The report studies the vendor landscape of the defense sector in China and states that this market is dominated by a number of large conglomerates such as China Aerospace International Holdings Ltd., China National Nuclear Corporation International Ltd., AVIC Group, and China Shipbuilding Industry Corporation. These companies have been studied in the research report and a business and financial overview of each player has been provided, along with a snapshot of the key business strategies.

China’s defense system has been studied by identifying the top 10 defense budgets in the country and the top 10 active military personnel. The military expenditures of China, the US, and Russia have been compared to give readers a clear understanding of China’s military spending by allocation and its military equipment trade by country and category.

To order report Call Toll Free: 866-997-4948 or send an email on