Report: Huge investments in indigenous defence manufacturing to reduce China’s reliance on imports


China continues to invest heavily in developing domestic military manufacturing capabilities to become self-reliant, says a report by Strategic Defence Inetlligence (SDI). China's efforts to increase domestic production have resulted in the steady decline of imports after 2012.

Titled, "Future of the Chinese Defence Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2021", the SDI report analyses and forecasts the Chinese military manufacturing industry.

Domestic defence production in the nation has grown rapidly in recent years, with local companies including Chengdu Aircraft Industry Group, Shenyang Aircraft Corporation, Harbin Aircraft Manufacturing Corporation and Shaanxi Aircraft Corporation producing technologically advanced aircraft. Indigenous manufacturing capability also enables the nation to minimise the impact of arms embargo imposed by the US and the European Union.

"Low-cost production capabilities of indigenous companies further provide new export opportunities in countries including Pakistan, Bangladesh, Myanmar, Venezuela and Tanzania."

Low-cost production capabilities of indigenous companies further provide new export opportunities in countries including Pakistan, Bangladesh, Myanmar, Venezuela and Tanzania, adds the report. Military aircraft exports constituted approximately 25% of China's total defence equipment exports over the last five years.

Despite low-cost indigenous procurement, China's annual defence expenditure is anticipated to grow to $247bn by 2021, according to the report.