Opinion | Inside China's 'Low-Cost' Arms Exports, Serving Everyone From Pak To West Africa

China's arms exports to Pakistan are just one part of a complex military production, export, and diplomacy ecosystem that Beijing has built over the years.
Opinion | Inside China's 'Low-Cost' Arms Exports, Serving Everyone From Pak To West Africa
Pakistan's Operation Sindoor showcased an array of Chinese-manufactured weapons, including HQ-9P and HQ-16 surface-to-air missiles, PL-15E air-to-air missiles, JL-10CE fighters, and the jointly developed JF-17 'Thunder' Block III aircraft. As China's largest arms client, Pakistan accounts for 63% of Beijing's arms exports between 2020-2024, while China supplies 81% of Pakistan's defense imports.
China has established a sophisticated military production and export ecosystem as part of its drive toward defense self-reliance. Although facing challenges related to political issues and quality concerns compared to leading exporters like the US, Russia, and France, China's defense export market continues to grow, presenting significant implications for India.
The Chinese military-industrial complex is dominated by major state-owned corporations focusing on innovation and self-sufficiency. These include CASC, CASIC, AVIC, CSSC, CETC, and NORINCO - all State-Owned Defense Enterprises primarily supervised by the State Council's SASAC. These corporations collectively manage over 2000 subsidiaries, research facilities, and global operations, with companies like NORINCO International Ltd. owning oil fields in Iraq and facilities in Saudi Arabia.
These entities operate under the 'Military-Civil Fusion' doctrine, aligning their production with PLA requirements while enabling dual-use capabilities for both civilian and military applications. Each corporation specializes in specific sectors crucial to the PLA: CETC focuses on radar and communications systems, AVIC (particularly CAIG) produces fighter jets, and CSSC builds naval vessels. Together, CAIG, CASIC, and CASC manufacture China's military drone fleet, including the CH 'Rainbow' series and Wing Loong systems.
SASTIND serves as China's primary regulatory authority in the defense sector, establishing production standards, R&D priorities, and quality certification requirements. Other government institutions like the Ministry of Industry and IT, Ministry of Commerce, and the Central Military Commission's Logistics Department provide additional oversight regarding ideological alignment, innovation policies, and export controls.
Since 2022, China's defense budget has grown consistently at 7.2% annually, with substantial investment in defense production. Profit motivation partially drives this expansion, with Chinese weapons reaching various conflict zones. In Myanmar, for example, Chinese arms are supplied to both the junta government and the 'Brotherhood Alliance' insurgents.
China often serves as a supplier of last resort for countries seeking affordable military equipment, such as Pakistan's acquisition of low-cost J-10C fighter variants. Non-state actors including insurgent groups in Chad and Syria have also obtained Chinese weapons like FN-6 MANPADS. Despite controversies surrounding such sales, China maintains a policy of "non-interference" in other nations' internal affairs.
Notably, Beijing reserves its most advanced defense systems for domestic use, offering export variants of reduced quality to international clients. Chinese analysts acknowledge a "technological gap" between their offerings and Western alternatives in major weapons systems like fighter jets and warships. Consequently, China cultivates relationships with developing economies having limited international options, explaining its position as West Africa's largest arms supplier (26% of regional imports) and its growing presence in the Middle East.
China integrates arms sales with broader defense cooperation and security initiatives. Xi Jinping's Global Security Initiative (GSI) exemplifies this approach, with many GSI-friendly nations becoming major arms importers. Defense agreements with ASEAN countries and Indian Ocean Region states have boosted Chinese exports, as evidenced by Indonesia's planned acquisition of 42 J-10CE fighters following recent bilateral defense talks. China's military presence is expanding through bases in Djibouti and potential facilities in Cambodia and Myanmar, enabling testing of capabilities in the Indian Ocean.
Historically, China specialized in exporting Small Arms and Light Weapons to developing nations in Asia, Africa, and Latin America. More recently, its export portfolio has diversified to include submarines, aircraft, missiles, artillery, UAVs, and electronic systems. Since 2011-2012, China has gained significant market share in drone exports, becoming the world's largest producer and exporter of civilian drones. Between 2017-2024, countries including the UAE, Serbia, Saudi Arabia, Algeria, DR Congo, and Pakistan were major importers of Chinese military UAVs.
In missile technology, China has delivered hundreds of surface-to-air missiles to Pakistan, Bangladesh, and Cambodia. In naval defense, CSSC shipyards supply vessels even to US allies like Singapore. Bangladesh has become heavily dependent on Chinese defense imports (70% since 2010), including two submarines stationed at BNS Pekua purchased for $203 million.
While China's global arms export market share is growing gradually, India's primary concern lies with the nations acquiring Chinese weaponry and their level of dependence. The increasing reliance of Pakistan, Myanmar, Bangladesh, and Sri Lanka on Chinese defense products signals an expanding PLA influence throughout India's neighborhood.
(Manoj Kewalramani is the Chairperson of the Indo-Pacific Studies Programme at the Takshashila Institution. Anushka Saxena is a Research Analyst with Takshashila's Indo-Pacific Studies Programme.)
Disclaimer: These are the personal opinions of the author