China Defence & Security Report 2018
The Chinese defence and security sectors are undergoing substantial changes and modernisation. Having already beganthe process of reform, statements made by President Xi Jinping in 2017 highlight that these are set to continue into 2018 andbeyond. The promotion of greater civil-military integration and private-sector and foreign investment will spur military industrialinnovation and expand the technological capabilities of the domestic defence sector, in turn boosting its export competitiveness inthe global defence market. Persistent regional tensions - particularly tensions on the Korean peninsula and territorial disputes in theSouth China Sea - will ensure that Chinese defence spending remains elevated in 2018 and beyond. There will continue to be acontinued emphasis on spending on cyberwarfare, naval and air forces. This will take place in spite of a cooling Chinese economy.
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