Tuesday, 02 January 2024 12:17 GMT

The Rot Eating At China's War Machine


(MENAFN- Asia Times) China's drive to build a modern, high-tech military is increasingly undermined by a widening corruption crisis that is raising doubts about its true strength.

This month, the Stockholm International Peace Research Institute (SIPRI) released a report mentioning that China's major state-owned defense firms suffered the steepest downturn among the world's top arms producers in 2024, as corruption scandals rippled through the sector and disrupted procurement.

According to the report, arms revenues of the eight Chinese companies on the list fell 10% to USD 88.3 billion, the sharpest decline of any country, dragging down overall regional performance. SIPRI researchers said six firms saw revenue losses after high-profile graft probes triggered postponements, cancellations and reviews of major military contracts.

Specifically, the report mentions that China North Industries Group Corporation Limited (NORINCO), China's biggest land-systems maker, reported a 31% plunge in sales after the government removed its chairman and the head of its military division over corruption allegations, prompting delays to key projects.

Similarly, the report says that China Aerospace Science and Technology Corporation (CASC) recorded a 16% revenue drop as satellite and launch-vehicle programs were postponed following the corruption-linked dismissal of its president.

Furthermore, it states that the Aviation Industry Corporation of China (AVIC), China's largest defense producer, also saw revenues slip 1.3% amid slower aircraft deliveries.

SIPRI noted that while other Asian producers generally expanded, China's decline stood out as systemic misconduct within procurement channels constrained output and undermined its efforts to modernize its forces at scale.

These industrial setbacks point to a deeper structural issue inside China's military system-one increasingly shaped not just by procurement failures, but by the political logic of Chinese President Xi Jinping's centralization of control.

As corruption increasingly disrupts China's defense-industrial output, the problem may be rooted not only in procurement misconduct but also in Xi's broader project of power consolidation, which is reshaping incentives inside the People's Liberation Army (PLA) and deepening the structural vulnerabilities undermining China's military effectiveness.

MENAFN01122025000159011032ID1110417677



Asia Times

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.

Search