China's arms imports plummet 72% over past five years

A new report shows China's arms imports fell 72% from 2021 to 2025, as the country turns to domestic production. Meanwhile, neighbors in Asia and Oceania have increased weapons purchases amid fears over China's intentions.

Beijing's arms imports have nose-dived by nearly three-quarters over the past five years, as it has replaced overseas weapons purchases with domestic technology, according to a report by the Stockholm International Peace Research Institute (SIPRI) released on Monday.

However, other countries in the region have increased their overseas weapons purchases amid “fears over China’s intentions”. The report said countries in Asia and Oceania imported 31 per cent of the world’s arms between 2021 and 2025, second only to Europe on 33 per cent.

Nevertheless, the region’s share of arms imports was 20 per cent lower than in the previous five-year period. This was mainly because of falls in arms sales to China, where imports fell 72 per cent, as well as in South Korea, which cut purchases by 54 per cent, and Australia, which bought 39 per cent less, the report said.

According to SIPRI, China was the 21st-largest recipient of major arms globally, falling out of the world’s top 10 largest recipients for the first time since 1991-95.

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Illustration of German arms factory shipping tanks to Ukraine, with SIPRI graph showing Germany as 4th largest exporter.
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Germany rises to fourth largest arms exporter

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According to a report by the Stockholm-based SIPRI peace research institute, Germany has overtaken China to become the fourth largest exporter of major weapons. Nearly a quarter of German deliveries went to Ukraine, while Europe as a whole has tripled its imports. The rise is driven primarily by the war in Ukraine and uncertainties about US support in NATO.

China announced on Thursday a 7% increase in defense spending for 2026, the lowest rate in five years but still exceeding economic growth targets amid rising regional tensions. The move supports military modernization by 2035, with references to Taiwan. Premier Li Qiang highlighted improvements in combat readiness.

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Amid energy shocks from the Iran war threatening Southeast Asia’s supply chains, US and European importers are shifting some orders back to China. Chinese exporters report a recovery in buyer numbers at the Canton Fair in Guangzhou.

South Korea's exports of auto parts to the United States fell in 2025 for the first time in five years. Domestic automakers expanded local sourcing in the U.S. amid tariff measures. According to data from the Korea Auto Industries Cooperative Association, shipments declined 6.7 percent from a year earlier to $7.67 billion.

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A report from Argentina's Observatorio de la Cadena Láctea Argentina warns that China, the world's top dairy buyer, has reduced import volumes by up to 16.5% at the start of 2026. Prices in dollars are cushioning the decline while domestic production rises.

The expiry of the New Strategic Arms Reduction Treaty (New Start) between the US and Russia could trigger a three-way arms race involving Beijing, Washington, and Moscow, analysts warn. China has reiterated its refusal to join trilateral nuclear disarmament talks with the US and Russia, citing disparities in nuclear stockpile sizes. Beijing hopes the US responds positively to Russia's suggestions to safeguard global strategic stability.

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