Archive · 1 Dec 2025
China's military firms face revenue decline amid corruption crackdown
China's big military companies had a bad year in 2023.
Their money from selling weapons went down by 10% because of a big fight against corruption.
This fight caused important deals to be delayed or canceled.
Meanwhile, other countries like Japan, Germany, and the US saw their military companies make more money.
The corruption fight even reached high-ranking generals, with eight being kicked out of the ruling party.
Despite these problems, China is still building up its military with new ships, missiles, and drones.
Experts think China will keep investing in its military, but it might take longer and cost more because of these issues.
China's military firms saw a 10% revenue decline in 2023 due to corruption purges and procurement delays.
Eight top generals, including the number two general He Weidong, were expelled on graft charges.
Global arms revenues rose 5.9% to $679 billion, with Japan, Germany, and the US seeing significant growth.
Norinco experienced the steepest revenue decline at 31% to $14 billion.
China continues to modernize its military despite delays and higher costs due to corruption crackdowns.
- Who
- China's military firms, including AVIC, Norinco, and CASC
- What
- Revenue decline due to corruption crackdown and procurement delays
- When
- 2023-2024
- Where
- China
- Why
- Corruption allegations and purges led to delays in arms contracts and procurement
- Revenue Decline
- 10%
- Top Generals Expelled
- 8
- Number Two General
- He Weidong
- Japan's Revenue Growth
- 40%
- Germany's Revenue Growth
- 36%
- US Revenue Growth
- 3.8%
- Norinco Revenue Decline
- 31% to $14 billion
Sources
China’s military firms struggle as corruption purge bites, report says
SIPRI report: Global arms sales rise to USD 679 bn in 2024 amid Ukraine and Gaza conflicts
China’s state defence giants see revenue slump as corruption probes stall procurement: SIPRI
War is good business? Global arms sales hit record $679bn in 2024. US, Russia among those who profited the most
