How China's Arms Sales Compare to the US

By Amira El-Fekki‎

Middle East News Reporter

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US‑based firms generated $334 billion in arms revenues in 2024, an increase of 3.8 percent from the previous year. By contrast, the top Chinese arms companies saw their combined revenues fall 10 percent, to $88.3 billion in 2024, according to a recent report by the Stockholm International Peace Research Institute (SIPRI).

Why It Matters

China is accelerating advanced weapons production and expanding exports amid an intensifying rivalry with the U.S. With some Western analysts noting that China still lags the U.S. in high-end technology and combat experience, its growing capabilities in advanced weapons production and exports are nonetheless reshaping global defense dynamics.

What To Know

The report published on Monday found that, among the world’s top 100 arms companies, several Chinese firms’ ranking declined from 2023 to 2024, while two firms reported revenue growth.

Norinco, China’s largest land-systems producer, reported the steepest decline with arms revenues falling 31 percent to about $14.0 billion and the China Aerospace Science and Technology Corporation (CASC), the country’s main aerospace and missile manufacturer, saw arms revenues fall 16 percent to $10.2 billion. Both companies saw their top executives sacked over corruption allegations, triggering contract reviews and project delays that contributed to revenue declines, according to SIPRI.

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Revenues fell 1.3 percent to $20.3 billion due to slower deliveries of military aircraft for the Aviation Industry Corporation of China (AVIC), China’s largest arms producer, which ranked 8th on the list, up from 9th in 2023. The company produces the J-20, China’s fifth-generation stealth fighter, designed to rival the U.S. F-22 Raptor.

Top-ranking U.S. companies in the report included Lockheed Martin, Northrop Grumman, Raytheon Technologies Corporation, Boeing, and General Dynamics but production faced challenges including budget overruns and delays, particularly on the F‑35 program.

Lockheed Martin’s 2024 arms revenues rose 3.2 percent to $64.7 billion, boosted by the delivery of 110 F‑35s that had been delayed. Meanwhile, Boeing saw its 2024 arms revenues fall 4.6 percent to $30.6 billion, due to production delay, particularly the KC-46A tanker.

What People Are Saying

Nan Tian, Director of the SIPRI Military Expenditure and Arms Production Programme, said in a statement: "A host of corruption allegations in Chinese arms procurement led to major arms contracts being postponed or canceled in 2024. This deepens uncertainty around the status of China’s military modernization efforts and when new capabilities will materialize."

Xiao Liang, Researcher with the SIPRI Military Expenditure and Arms Production Programme, said: "The delays and rising costs will inevitably impact US military planning and military spending. This could have knock-on effects on the US government’s efforts to cut excessive military spending and improve budget efficiency."

What Happens Next

China’s export restrictions on critical minerals and materials essential to weapons production are driving shortages, price spikes, and costly supply-chain overhauls for U.S. and European defense firms, SIPRI says.

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