China has invested considerably in the modernization of its arms industry since the 1960s, particularly since 1999.1 One aim of this has been to become self-reliant in the production of advanced weapons and technologies for its armed forces, motivated by China’s security assessments and its moderni- zation goals of 2020, 2035 and 2049. The rise in Chinese arms exports and the increased variety of the types of weapon exported suggest that the country’s state-owned arms industry is already at the forefront of many production sectors.
However, due to a lack of transparency, the value of Chinese companies’ arms sales has been either unknown or based on unreli- able estimates. For this reason, the SIPRI Top 100—an annual list of the world’s 100 largest arms-producing and military services companies—has never included Chinese companies.4 This means that Chinese companies cannot be compared to other major arms-producing and military services companies (or ‘arms companies’ for short).