China’s massive military spending is creating a ripple effect across the Asia-Pacific region

With a defence budget second only to the US, China is amassing a navy that can circle the globe and developing state-of-the-art autonomous drones

The build-up is motivating surrounding countries to bolster their own armed forces, even if some big-ticket military equipment is of dubious necessity

Reading Time:4 minutes

Chinese President Xi Jinping reviews an honour guards before a naval parade in Qingdao. Photo: Xinhua

Published: 8:35pm, 10 Jun 2019Updated: 9:34pm, 10 Jun 2019

The Asia-Pacific region is one of the fastest-growing markets for arms dealers, with economic growth, territorial disputes and long-sought military modernisation propelling a 52 per cent increase in defence spending over the last decade to US$392 billion in 2018, according to the Stockholm International Peace Research Institute.

The region accounts for more than one-fifth of the global defence budget and is expected to grow. That was underscored last week by news of Taiwan’s bid to strike a US$2 billion deal to purchase US tanks and missiles.

Taiwanese Soldiers on a CM11 battle tank, jointly developed with US arms manufacturer General Dynamics. Photo: EPA

The biggest driver in arms purchases, however, is China – responsible for 64 per cent of military spending in the region. With a defence budget that is second only to the US, China is amassing a navy that can circle the globe and developing state-of-the-art autonomous drones. The build-up is motivating surrounding countries to bolster their armed forces too – good news for purveyors of submarines, unmanned vehicles and warplanes.

It is no coincidence that the recent Shangri-La Dialogue in Singapore, a security conference attended by defence chiefs, was sponsored by military contractors including Raytheon, Lockheed Martin and BAE Systems.

Kelvin Wong, a Singapore-based analyst for Jane’s, a trade publication that has been covering the defence industry for 121 years, has developed a niche in infiltrating China’s opaque defence industry by attending obscure trade shows that are rarely advertised outside the country.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x