Revenues at China’s giant military firms fell last year, as corruption purges slowed arms contracts and procurement, a study released yesterday by a leading conflict think tank said.
The Chinese declines contrast with strong revenue growth globally for big arms and military-services companies, fueled by wars in Ukraine and Gaza, and global and regional tensions, the research by the Stockholm International Peace Research Institute (SIPRI) found.
“A host of corruption allegations in Chinese arms procurement led to major arms contracts being postponed or canceled in 2024,” said Nan Tian, director of SIPRI’s Military Expenditure and Arms Production Programme. “This deepens uncertainty around the status of China’s military modernization efforts and when new capabilities will materialise,” the report said.
The Chinese People’s Liberation Army (PLA) was one of the main targets of a broader corruption crackdown ordered by Chinese President Xi Jinping (習近平) in 2012, reaching the upper levels of the military in 2023, when the PLA’s Rocket Force was targeted.
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