Chinese weapon makers take second biggest share of global sales as industry avoids pandemic slump

Five companies from China accounted for 13 per cent of total sales by the world’s 100 biggest arms producers last year, led by the US, according to SIPRI

Industry expanded even during Covid-19 crisis, ‘largely shielded by sustained government demand for military goods and services’, Swedish think tank says

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The Type 98B battle tank, made for export by Norinco. The company was the leading Chinese weapons maker last year, with estimated sales of US$17.9 billion. Photo: Barcroft Media via Getty Images

Published: 9:43pm, 6 Dec 2021

Chinese arms manufacturers again notched up the second highest global sales after US firms in 2020, as the industry remained largely unaffected by the Covid-19 pandemic.

That is according to the latest report on the world’s top 100 arms companies by the Stockholm International Peace Research Institute (SIPRI), released on Monday.

The Swedish think tank said China’s modernisation programme and push for self-reliance in defence had driven its arms producers and services companies to become more competitive.

It said the combined arms sales of the five Chinese firms in the top 100 list amounted to an estimated US$66.8 billion last year – up 1.5 per cent from 2019.

“All five Chinese arms companies ranked among the top 20, with three in the top 10,” according to the report.

Those Chinese firms accounted for 13 per cent of total sales by the world’s 100 largest arms producers – the second highest volume of aggregated arms sales in 2020 after American companies, which made up the top five, it said.

Norinco, or the China North Industries Group Corporation, was the leading Chinese weapons maker, with estimated sales of US$17.9 billion last year. That compares to the top arms producer, US firm Lockheed Martin, with US$58.2 billion in sales.