Story perspectives

China's Military Firms Face 10% Revenue Decline Amid Corruption Crackdown

12/1/2025

Summary

Story summary

Revenues at China's military firms declined 10% last year as corruption purges slowed arms contracts, per the Stockholm International Peace Research Institute (SIPRI).
Norinco fell 31%, while AVIC and CASC also posted significant declines.
The corruption crackdown, initiated by President Xi Jinping, has raised uncertainties about modernization and the PLA's 100th anniversary goals for 2027.
Despite setbacks, long-term defense investment is expected to continue.

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Story summary

Revenues at China's military firms declined 10% last year as corruption purges slowed arms contracts, per the Stockholm International Peace Research Institute (SIPRI).
Norinco fell 31%, while AVIC and CASC also posted significant declines.
The corruption crackdown, initiated by President Xi Jinping, has raised uncertainties about modernization and the PLA's 100th anniversary goals for 2027.
Despite setbacks, long-term defense investment is expected to continue.