China Defence and Security Report Q2 2014

Business Monitor International
March 5, 2014
104 Pages - SKU: BMI5213865
Countries covered: China

China Defence and Security Report Q2 2014

China's establishment of an Air Defense Identification Zone (ADIZ) in November 2013 (discussed at lengthseparately in this report) has significantly raised geopolitical tensions in the Asia-Pacific region, and riskscreating a major backlash against Beijing. Tensions over the disputed Diaoyu/Senkaku Islands with Japanalso remain a concern.

China's military modernisation programme is continuing unabated and it is pursuing export orders withcountries in and out of NATO, although political pressure can close some avenues for Chinese materiel. Forexample, in Q214 Turkey was debating about whether to continue with a US$3.44bn contract for theChinese HQ-9 air-defences ballistics from China Precision Machinery Import-Export Corp, which is ona US sanctions list. The win had signalled that Chinese companies are becoming competitive in the worldmarket for advanced military systems (they have previously only dominated in the low end of the market).

However, China's competitiveness is still very much based on being able to provide arms and equipment atlower costs than higher-quality, Western-sourced suppliers.



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