China shoots up to 3rd in arms exports

FILE - In this Nov. 21, 2010, file photo, Pakistan Air Force personnel sit in front of their JF-17 jet fighter at the 8th China International Aviation and Aerospace Exhibition (Zhuhai Airshow) in Zhuhai, southern coast of Guangdong province, China.  China has overtaken Germany to become the world’s third-biggest arms exporter, although its 5 percent of the market remains small compared to the combined 58 percent of exports from the U.S. and Russia, a new study says. (AP Photo/Kin Cheung, File)
FILE - In this Nov. 21, 2010, file photo, Pakistan Air Force personnel sit in front of their JF-17 jet fighter at the 8th China International Aviation and Aerospace Exhibition (Zhuhai Airshow) in Zhuhai, southern coast of Guangdong province, China. China has overtaken Germany to become the world’s third-biggest arms exporter, although its 5 percent of the market remains small compared to the combined 58 percent of exports from the U.S. and Russia, a new study says. (AP Photo/Kin Cheung, File)

BEIJING -- China has overtaken Germany to become the world's third-biggest arms exporter, although its 5 percent share remains small compared with the combined 58 percent of exports from the U.S. and Russia, a new study said.

China's share of the global arms market rose 143 percent from 2010 to 2014, a period during which the total volume of global arms transfers rose by 16 percent over the previous five years, the Stockholm International Peace Research Institute said in a report released Monday.

Its share of the world market was up from 3 percent in the 2009-2014 period, when China was ranked ninth among exporters of warplanes, ships, side arms and other weaponry, the institute said.

The data show the growing strength of China's domestic arms industry, now producing fourth-generation fighter jets, navy frigates and a wide range of relatively cheap, simple and reliable smaller weapons used in conflicts around the globe.

Responding to the study, Chinese Foreign ministry spokesman Hong Lei said China took a "cautious approach" to arms exports and has abided by relevant U.N. resolutions and domestic laws.

"We follow the principle that the export of arms will help increase the recipient country's legitimate self-defense capabilities and not undermine international or regional peace and stability, and we don't intervene in their domestic affairs," Hong said.

China had long been a major importer of weapons, mainly from Russia and Ukraine, but its soaring economy and the copying of foreign technology have largely reversed the trend, except for the most cutting-edge designs and sophisticated parts such as aircraft engines.

China supplies weapons to 35 countries, led by Pakistan, Bangladesh and Burma, the report said.

Chinese sales included those of armored vehicles and transport and trainer aircraft to Venezuela, three frigates to Algeria, anti-ship missiles to Indonesia and unmanned combat aerial vehicles, or drones, to Nigeria, which is battling the Boko Haram insurgency in its north.

China's comparative advantages include its low prices, easy financing and friendliness toward authoritarian governments, said Philip Saunders, director of the Center for the Study of Chinese Military Affairs at the U.S. National Defense University.

"Generally speaking, China offers medium-quality weapons systems at affordable prices, a combination attractive to cash-strapped militaries in South Asia, Africa and Latin America," Saunders said.

Notable successes include a co-production deal with Pakistan to produce the JF-17 fighter, widespread sales of the basic but effective C-802 anti-ship cruise missile, and an agreement to sell the HQ-9 air defense missile system to Turkey that has run into controversy over its incompatibility with NATO weapons systems.

China also has exploited niche markets such as North Korea and Iran that the West won't sell to, said Ian Easton, research fellow at The Project 2049 Institute, an Arlington, Va.-based Asian security think tank.

Both those U.S. foes appear to have received satellite jamming and cyberwarfare capabilities from China, along with technology to break into private communications and spy on government opponents, Easton said.

"All of these sales should be very disconcerting to American policymakers and military leaders," he said, calling China's rise to the third-place spot among exporters a "disturbing development" that could threaten the security of the U.S. and its allies.

Business on 03/17/2015

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