China’s private defence companies see opportunities amid growing conflicts

Escalating global conflicts could create opportunities for China’s private defence companies as customers, both at home and abroad, seek affordable and reliable military equipment, according to industry insiders.

“The international landscape is highly favourable for our private enterprises’ participation in the defence industry,” said Li Yi, a researcher with Beihang University’s Shenzhen Research Institute. Li made the comments on Monday at a military exhibition in the southern city of Shenzhen.

Li, a former member of the People’s Liberation Army armaments department, said the Russia-Ukraine war and the India-Pakistan conflict in May had accelerated the development of new equipment and forces.

“These developments have created a broad stage and ample space for private firms to contribute to the military sector,” he said at a forum during the exhibition.

While China’s major state-owned defence conglomerates continue to dominate weapons development, private companies have increasingly entered the sector in recent years under the country’s military-civil fusion strategy, which seeks to deepen integration between civilian and defence industries.

The strategy is a core pillar of China’s ambition to build a modern military by 2035 and a “world-class” force by 2049.

South China Morning Post