1 Introduction
1.1 What is this Report About?
1.2 Definitions
1.3 Summary Methodology
1.4 SDI Terrorism Index
1.5 About Strategic Defense Intelligence
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1 Defense Market Size Historical and Forecast
3.1.1 Chinese defense expenditure is expected to value US$1007.7 billion cumulatively over the forecast period
3.1.2 Race over military supremacy, territorial disputes, peacekeeping missions, increasing tension with the US, and research and development are the main factors driving Chinese defense expenditure
3.1.3 Chinese defense expenditure to average
1.3% of GDP over the forecast period
3.2 Analysis of Defense Budget Allocation
3.2.1 Capital expenditure allocation expected to average
32.8% of the total defense budget over the forecast period
3.2.2 Defense capital expenditure is expected to reach US$330.2 billion cumulatively over the forecast period
3.2.3 Per capita defense expenditure expected to increase during the forecast period
3.3 Homeland Security Market Size and Forecast
3.3.1 Chinese homeland security is expected to reach US$36.4 billion by 2021
3.3.2 Organized crime, terrorism threats, and cyber protection are expected to drive Chinese homeland security expenditure
3.3.3 China falls under the "highly affected" of terrorism category
3.3.4 China has a terrorism index score of
6.3
3.4 Benchmarking with Key Global Markets
3.4.1 China to be the largest defense spender in Asia
3.4.2 China has the second largest defense budget in the world
3.4.3 China allocates a lower share of GDP for defense compared to the US and other Asian countries
3.4.4 China is "highly affected" by terrorism as per SDI Research Intelligence Terrorism Index
3.5 Market Opportunities: Key Trends and Growth Stimulators
3.5.1 Multi-role Aircraft
3.5.2 Infrastructure construction
3.5.3 Surface-air missiles
3.5.4 Multi-mission Helicopter
3.5.5 Transport Aircraft
3.5.6 Destroyers
4 Defense Procurement Market Dynamics
4.1 Import Market Dynamics
4.1.1 China is expected to import fewer weapons over the forecast period
4.1.2 Russia accounts for the majority of Chinese defense imports
4.1.3 Aircraft, engines, and ships are the most imported military hardware
4.2 Export Market Dynamics
4.2.1 Defense exports are expected to grow over the forecast period
4.2.2 Pakistan emerged as the biggest importer of Chinese low-cost defense equipment exports
4.2.3 Chinese aircraft and armored vehicle exports expected to increase
5 Industry Dynamics
5.1 Five Forces Analysis
5.1.1 Bargaining power of supplier: high
5.1.2 Bargaining power of buyer: medium
5.1.3 Barriers to entry: high
5.1.4 Intensity of rivalry: low
5.1.5 Threat of substitution: low
6 Market Entry Strategy
6.1 Market Regulation
6.1.1 The Chinese military-industrial complex opens up to private sector participation
6.1.2 Defense industry remains closed to foreign direct investment
6.2 Market Entry Route
6.2.1 Foreign technology finds its way into the Chinese defense industry through civil-military integration
6.3 Key Challenges
6.3.1 Lack of competition and long production cycles continue to hamper the performance of the Chinese defense industry
6.3.2 Arms embargo imposed by the US and EU
7 Competitive Landscape and Strategic Insights
7.1 Competitive Landscape Overview
7.1.1 State-owned enterprises are the only major players in China's defense industry
7.1.2 Foreign technology enters the Chinese defense market by supplying civil use products
7.2 Key Domestic Companies
7.2.1 China North Industries Corporation: overview
7.2.2 China North Industries Corporation: products
7.2.3 China North Industries Corporation: recent announcement and strategic initiatives
7.2.4 China North Industries Corporation: alliances
7.2.5 China North Industries Corporation: recent contract wins
7.2.6 China Electronics Technology Group Corporation: overview
7.2.7 China Electronics Technology Group Corporation: products
7.2.8 China Electronics Technology Group Corporation: recent announcements and strategic initiative
7.2.9 China Electronics Technology Group Corporation: alliances
7.2.10 China Electronics Technology Group Corporation: recent contract wins
7.2.11 Aviation Industry Corporation of China: overview
7.2.12 Aviation Industry Corporation of China: products
7.2.13 Aviation Industry Corporation of China: recent announcements and strategic initiatives
7.2.14 Aviation Industry Corporation of China: alliances
7.2.15 Aviation Industry Corporation of China: recent contract wins
7.2.16 China National Nuclear Corporation: overview
7.2.17 China National Nuclear Corporation: services
7.2.18 China National Nuclear Corporation: recent announcements and strategic initiatives
7.2.19 China National Nuclear Corporation: alliances
7.2.20 China National Nuclear Corporation: recent contract wins
7.2.21 China Xinshidai Company: overview
7.2.22 China Xinshidai Company: products
7.2.23 China Xinshidai Company: recent announcements and strategic initiatives
7.2.24 China Xinshidai Company: alliances
7.2.25 China Nuclear Engineering and Construction Corporation: overview
7.2.26 China Nuclear Engineering and Construction Corporation: services
7.2.27 China Nuclear Engineering and Construction Corporation: recent announcements and strategic initiatives
7.2.28 China Nuclear Engineering and Construction Corporation: alliances
7.2.29 China Aerospace Science and Industry Corporation: overview
7.2.30 China Aerospace Science and Industry Corporation: products
7.2.31 China Aerospace Science and Industry Corporation: recent announcements and strategic initiatives
7.2.32 China Aerospace Science and Industry Corporation: alliances
7.2.33 China Aerospace Science and Technology Corporation: overview
7.2.34 China Aerospace Science and Technology Corporation: products
7.2.35 China Aerospace Science and Technology Corporation: recent announcements and strategic initiatives
7.2.36 China Aerospace Science and Technology Corporation: alliances
7.2.37 China State Shipbuilding Corporation: overview
7.2.38 China State Shipbuilding Corporation: products
7.2.39 China State Shipbuilding Corporation: recent announcements and strategic initiatives
7.2.40 China State Shipbuilding Corporation: alliances
7.2.41 China State Shipbuiding Corporation: recent contract wins
7.2.42 China National Electronics Import and Export Corporation: overview
7.2.43 China National Electronics Import and Export Corporation: products
7.2.44 China National Aero-Technology Import and Export Corporation: overview
7.2.45 China National Aero-Technology Import and Export Corporation: products
7.2.46 China National Aero-Technology Import and Export Corporation: recent announcement and strategic initiatives
7.2.47 China National Aero-Technology Import and Export Corporation: recent contract wins
8 Business Environment and Country Risk
8.1 Economic Performance
8.1.1 Gross Domestic Product per Capita
8.1.2 Gross Domestic Product (Current US$ Bn)
8.1.3 Exports of goods and services in local currency
8.1.4 Imports of goods and services in local currency
8.1.5 Local Currency Unit per US$
8.1.6 Market Capitalization of Listed companies (US$ bn)
8.1.7 Market Capitalization of Listed companies (percentage of GDP)
8.1.8 Goods Exports as a percentage of GDP
8.1.9 Goods Impors as a percentage of GDP
8.1.10 Services Imports (as percentage of GDP)
8.1.11 Services Exports (as percentage of GDP)
8.1.12 Net Foreign Direct Investment
8.1.13 Net FDI as a percentage of GDP
8.1. Minerals
8.1.14 Mining, Manufacturing, Utilities Output
9 Appendix
9.1. About SDI
9.2. Disclaimer