China replaces South Korea as East Asia’s largest defence equipment importer

China overtook South Korea as East and Southeast Asia’s largest importer of defence equipment last year as imports in the region rose more than eight times faster than global trade of defence equipment.

Regional growth in imports was led by China as the world’s second-largest economy faces territorial disputes with neighbours in the East China Sea and South China Sea, according to figures released on Thursday by the consultancy IHS in its annual Balance of Trade study.

China’s imports increased 52.6 per cent to US$2.3 billion last year. They stood at US$1.5 billion in 2012. The study predicted Chinese imports would grow by 13.8 per cent this year to US$2.6 billion.

Chinese defence-related exports reached US$1.9 billion last year, up 4.4 per cent.

Paul Burton, Singapore-based defence content director for IHS, said imports from Russia had ballooned the People’s Liberation Army’s spending abroad.

“Russia increased its exports from roughly US$3.5 billion to US$4.5 billion, mostly due to increased engine and fighter jet trade with China,” he said. Deliveries and upgrades of air defence equipment, such as aircrafts and helicopters, have driven the regional market overall, he added.