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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
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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.
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.
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