SIPRI: Global Arms Industry Growth, China's Military Industry Revenue Slumps Dramatically
SIPRI reported on Monday, December 1st, that global military industry revenue saw a significant increase in 2024. Additionally, with geopolitical tensions, the revenues of arms manufacturers in Europe, including Germany, also showed notable growth.
The Stockholm International Peace Research Institute (SIPRI) released its global military spending report on Monday, December 1st, stating that in 2024, China's military industry experienced a sharp decline in revenue, contrasting sharply with the general growth in global arms sales.
SIPRI data shows that global arms companies generally saw increased revenue due to the Ukraine-Russia war, the Gaza conflict, and global regional tensions. In 2024, the top 100 arms companies globally recorded a 5.9% increase in revenue, reaching a record high of $67.9 billion. Japan saw a significant increase of 40%, Germany grew by 36%, and the United States by 3.8%.
Chinese major military enterprises saw a 10% drop in revenue last year, making Asia-Pacific the only region where overall revenue declined.
Russia-Ukraine War Boosts German Arms Industry Growth
The United States remains the leading country in the global arms industry. Among the top 100 arms companies globally, 39 are from the United States, accounting for nearly half of global arms sales, with an increase of about 3.8%, which is relatively moderate.
European arms companies have seen significant growth. Excluding Russia, there are 26 companies in Europe, with total growth of 13%. Among them, German arms companies saw a substantial increase of 36% in revenue.
Analysts said, "This is almost entirely related to Russia's invasion of Ukraine, as the demand from the German military has significantly increased. Whether it is Rheinmetall or Diehl, they are producing tanks, armored vehicles, and large quantities of ammunition for the German military to replenish weapons for Ukraine and to expand their own tank and infantry fighting vehicle numbers."
Predictions of "Economic Collapse" in Russia Proven Incorrect
In the SIPRI report, Russia's ranking is listed separately. Russian arms companies' revenues have significantly increased, despite Russia's export decline due to international sanctions, as the sharp rise in domestic demand completely offset these losses.
International sanctions have left Russia's military industry lacking components from abroad, especially electronic equipment needed for aircraft. However, predictions that Russia's economy might collapse due to sanctions have been proven inaccurate.
Analysts pointed out, "Russia has completely changed its national priorities. Over the past three years, the production system has fully shifted to a wartime economy," directing all resources toward the war. The SIPRI report also shows that the annual production of 152mm artillery shells in Russia increased from 250,000 to 1.3 million between 2022 and 2024, a rise of approximately 420%.
Analysts said, "Russia's current situation is clearly worse than it was before it invaded Ukraine; however, Russia has demonstrated 'considerable resilience to various sanctions and economic pressures.' They believe that, depending on the extent of Russia's economic transformation, even if peace with Ukraine is achieved permanently in the future, it may still be difficult to return to a non-war economy."
Source: DW
Original: toutiao.com/article/1850295100920860/
Statement: This article represents the views of the author."