China Defense Industry Report: 2016 Edition

The armed forces of the People's Republic of China are known as the ‘Chinese People's Liberation Army (popularly known as PLA) which operates under the Central Military Commission (CMC). The CMC is responsible for providing unified commands and for leading the armed forces of China, along with determining the operational structure and strategies to be adopted by the military. The PLA has 7 Military Regions under the General Staff Headquarters. The PLA has recently restructured its departmental structure and added a new PLA Strategic Support Force as a new service branch in December 2015.

China's defense industry has been relishing the most productive and lucrative years in its history, which is driven by plentiful state funding, pent-up domestic demand, and access to and development of critical technological know-how on equipment, aircrafts, shipbuilding, missiles etc.

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The key factors which are anticipated to drive China's Defense Industry include increasing military expenditure of China, reducing import reliance, increasing economic growth and rising exports. Some of the noteworthy developments of this industry include increasing asset injections, changes in pricing models and management incentives as a part of the SOE reforms, increasing modernization of the PLA. However, the growth of respective industry is hindered by the lower profitability and lack of global competences.

This report offers a comprehensive analysis of the Chinese defense industry, along with an extensive study of its various segments including Aviation Industry, Shipbuilding Industry and Nuclear Industry. Furthermore, market dynamics such as key trends and development; and challenges are analyzed in depth. On the contention front, the China defense industry is dominated by several large conglomerates including the AVIC Group, China Shipbuilding Industry Corporation, China State Shipbuilding Corporation etc. The competitive landscape of the respective market, along with the company profiles of the leading players are also discussed in detail.

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