The Chinese Defense Industry

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					The Chinese Defense Industry: Market Opportunities and Entry Strategies, Analyses and Forecasts to
2017

Aarkstore.com announces, a new Defense Industry market research report is available in its vast
collection.

http://www.aarkstore.com/reports/The-Chinese-Defense-Industry-Market-Opportunities-and-Entry-
Strategies-Analyses-and-Forecasts-to-2017-170232.html

Product Synopsis
This report is the result of SDI/ICD Research’s extensive market and company research covering the
Chinese defense industry. It provides detailed analysis of both historic and forecast defense industry
values including key growth stimulators, analysis of the leading companies in the industry, and key news

Introduction and Landscape
Why was the report written?
The Chinese Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to
2017 offers the reader insights into the market opportunities and entry strategies adopted by foreign
original equipment manufacturers (OEMs) in order to gain market share in the Chinese defense industry.

What is the current market landscape and what is changing?
The Chinese defense market registered significant growth during the review period and is expected to
retain this positive growth rate during the forecast period. The Chinese defense budget, which valued
US$104.62 billion in 2012, is the largest defense budget in the Asia-Pacific region. Defense expenditure
grew at a CAGR of 11.5% during the review period. Due to the rapid growth of the country’s defense
budget, the Chinese army is now capable of rivaling the leading military powers of Western European
countries.

What are the key drivers behind recent market changes?
China is expected to spend US$722.4 billion in the fulfillment of its defense requirements. Factors such
as Sino-US relations, asymmetric warfare and the threat from Taiwan to its territorial integrity are
expected to stimulate defense expenditure during the forecast period. China’s emphasis on the import
of technology rather than in the import of finished equipment will continue to lead the development of
domestic defense firms.

What makes this report unique and essential to read?
The Chinese Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to
2017 provides detailed analysis of the current industry size and growth expectations from 2013 to 2017,
including highlights of key growth stimulators. It also benchmarks the industry against key global
markets and provides detailed understanding of emerging opportunities in specific areas of defense
market.
Key Features and Benefits
The report provides detailed analysis of the current industry size and growth expectations from 2013 to
2017, including highlights of key growth stimulators. It also benchmarks the industry against key global
markets and provides detailed understanding of emerging opportunities in specific areas.

The report includes trend analysis of imports and exports, together with its implications and impact on
the Chinese defense industry.

The report covers five forces analysis to identify various power centers in the industry and how these
are expected to develop in the future.

The report allows readers to identify possible ways to enter the market, together with detailed
descriptions of how existing companies have entered the market, including key contracts, alliances, and
strategic initiatives.

The report helps the reader to understand the competitive landscape of the defense industry in China. It
provides an overview of key defense companies, both domestic and foreign, together with insights such
as key alliances, strategic initiatives, and a brief financial analysis.

Key Market Issues
Despite structural reforms, the Chinese defense industry remains under state control and contains very
little competition. Barring a few industrial enterprises, the majority of organizations fail to compete with
each other, which impedes the development of China’s modern indigenous defense industry as there is
no incentive for companies to innovate.

Following the 1989 Tiananmen Square massacre, an arms embargo was imposed by the US and other
European countries. During the review period, some European states have proposed lifting the arms
ban, but the US and Japan have opposed this proposal due to fears that it will enable China to enhance
its military capabilities. As a result, China’s defense industry is unable to acquire sophisticated military
hardware from the US or Western European countries.

Key Highlights
Chinese defense expenditure, estimated at US$104.62 billion during 2012, grew at a CAGR of 11.5%
during the review period. During the forecast period, it is expected to record a CAGR of 8.49% and reach
US$174.9 billion by 2017. Over the next five years the country’s defense expenditure is expected to be
driven by factors such as Sino-US relations, asymmetric warfare and the threat from Taiwan to its
territorial integrity.

During the review period, aircraft and armored vehicles were the main categories in defense exports by
China. In 2011, China exports defense products to 36 countries with a total value of US$1.35 billion.
With the rapid grow of domestic defense companies, defense exports are expected to remain high
during the forecast period.

				
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