China's top defense firms saw a 10% revenue drop in 2024 due to anti-corruption drives delaying arms contracts.

China’s top military firms saw a 10% revenue drop in 2024 due to an intensified anti-corruption campaign that delayed or canceled major arms contracts, according to a SIPRI report. The decline, driven by leadership purges and procurement disruptions at state-owned companies like Norinco and AVIC, contrasted with a global defense industry surge of 5.9% to $679 billion. While Japan, Germany, and the U.S. saw strong growth, Asia-Oceania was the only region to decline, with Norinco’s revenue falling 31%. Despite delays in missile, aircraft, and cyber programs, long-term defense investment and political commitment to modernization remain intact.