Page 19 - ADT MARCH 2023 Latest Magazine | GBP

Data released by the Stockholm International Peace Research
© Gordon Arthur Institute (SIPRI) revealed that of the world’s 100 top arms makers in
2021, a record 21 were from Asia-Pacific. The Chinese were as follows:
Norinco at number seven, AVIC eight, CASC nine, CETC ten, CASIC
eleven, China State Shipbuilding Corporation (CSSC) 14 and China
South Industries Group Corporation 20. This list reflects the sheer
dominance of Chinese manufacturers within Asia.

Sales of the top eight Chinese companies amounted to USD109
billion in 2021, up 6.3% compared to 2020. Indeed, Norinco’s sales
soared 11% to USD21.6 billion, while CASIC’s grew even more, up
13% to USD14.5 billion. SIPRI commented: ‘The growth in arms sales
reflects the scale of China’s military equipment modernisation and
its objective to become self-reliant in the production of all cate-
gories of major arms.’ SIPRI added: ‘Signs of consolidation have
The sheer size of these contracts is startling, and been observed in China’s arms industry since the mid-2010s, which
equally so is the ability of South Korean industry marked a reversal of previous structural reforms aimed at improving
to fulfil them quickly. For example, within about productivity and competitiveness by breaking up sector monopo-
three months of the contract being signed, the lies. In 2021 the two largest shipbuilders in China, CSIC and CSSC,
first 24 K9s and ten K2s disembarked on Polish finalised a merger to form a new entity operating under the name
docks in Gdynia on 5 December 2022. More is CSSC (ranked 14th) … [making it] the largest military shipbuilder in
to come too, with LIG Nex1 recently revealing the world in 2021.’
that Seoul is close to sealing a deal with Saudi
Arabia for KM-SAM missile systems. Also signif- It is only after these aforementioned Chinese state-owned con-
icant is the willingness of South Korean OEMs to glomerates that other Asian companies begin to appear in SIPRI’s
transfer technology. For instance, Hanwha will top 100 arms companies. Mitsubishi is listed by SIPRI in 35th posi-
establish a K9 SPH production and MRO facility tion, Hindustan Aeronautics Limited at 42, Hanwha Aerospace 50,
in Poland from 2026. Kawasaki 54, ST Engineering 57, National Chung-Shan Institute of
Science and Technology 60, Bharat Electronics Limited 63, China
Incidentally, Australia once pooh-poohed South National Nuclear Corporation 64, KAI 65, LIG Nex1 71, Fujitsu 77,
Korean equipment, but it did a full U-turn in Hanwha Corporation 82, IHI 89 and Austal in 97th position.
December 2021 when it signed up for 30 AS9
Huntsman SPHs and 15 AS10 ammunition resup- Asia has unparalleled industrial capacity compared to other
ply vehicles from Hanwha Defense Australia. regions of the world, with China, Japan, South Korea and Taiwan
Furthermore, the company’s AS21 Redback is all having well-developed heavy industrial and high-tech sectors.
one of two shortlisted contenders for Project This is reflected in their ability to produce all manner of sophisticated
Land 400 Phase 3, which seeks up to 450 infan- weaponry. Japan may be trailing China and South Korea in terms
try fighting vehicles for the Australian Army. The of arms exports, but Tokyo seems intent on rectifying this historical
rise of South Korea’s defence industry has not and political reticence to sell weapons.
been sudden but it has been inexorable, as the
country’s manufacturers offer reliable, innovative © Gordon Arthur
and affordable defence equipment. South Korea
is now deliberately targeting the US market, and
its Australian success gives it a foot in the door
of the Five Eyes community.

China
China is Asia’s largest defence manufacturer,
and it has done particularly well in exports.
Its largest clients from 2017-21 were Pakistan,
Bangladesh and Thailand. However, African,
Asian and Middle East nations are all queueing
up to buy relatively low-cost military equipment
from Beijing, which has no compunction selling
to regimes with less-than-stellar human rights
records.
ASIAN DEFENCE TECHNOLOGY MARCH 2023 | 19