Is China Ready for War? Its Largest Defense Contractor Sells Nearly $21 Billion in Weapons Annually, So We’d Say Yes

Satellite images of China have military experts worldwide concerned about the future of military power. These satellite images purportedly captured the breadth and scale of a new project that might turn out to be the largest underground military command center ever established. And yes, that means ever in history. For China, this military command center allows the country to establish itself as a military leader, prepare for expanded geopolitical or territorial gains, and defend national security against outside threats. The nation has simultaneously been increasing its defense spending, expanded its nuclear and space capabilities, and gotten itself increasingly ready for any battle — moves that have frightened other nations and prompted concerns about military action in the Indo-Pacific region. U.S. Defense Secretary Pete Hegseth has even stated that China is a threat both regionally and internationally; deterring China’s threats is needed to maintain worldwide stability.

Should China soon find itself in conflict or even war with other countries, it already has a significant stockpile of weapons. But who are the companies and defense contractors who are making these weapons? To identify the largest weapons manufacturers in China, 24/7 Wall St. used a December 2024 fact sheet published by the Stockholm International Peace Research Institute (SIPRI). While this sheet was published in December 2024, it contains information on the top arms-producing and military services companies in 2023 on a global scale. We used this data to rank every Chinese company on the list based on their total revenue and arms sales from that year. Additional information on inflation-adjusted sales, headquarters, and total revenue was also sourced from SIPRI.

This previously published article was updated in May 2025 to provide insights into China’s military development and add recent information on arms manufacturers. 

Current China-U.S. Conflict

The United States and China have somewhat of a contentious history. Although the two global powers have gone back and forth over the years, experiencing periods of both tension and cooperation, tensions between U.S. President Donald Trump and Xi Jiping, President of the People’s Republic of China, have soured over recent months. Not only does the United States no longer outwardly reject Taiwanese independence — a switch in perspective that China has called “erroneous” — but the trade war and heightened tariffs have led to China exporting fewer valuable minerals to the U.S. If conflict continues to rise, the U.S. and China may soon find themselves in a more militaristic battle. At this point, defense contractors should be prepared to pump out weapons and munitions.

Why It Matters Now

China’s rapid militarization has been ongoing for decades, and every year, is pumping billions of dollars into the hands of several defense firms owned by the Chinese government. In an opening statement for the Defense Department’s fiscal 2025 budget request, former Defense Secretary Lloyd Austin named China as the leading threat to American national security, a line that has since been repeated by Hegseth and other parties. Iowa Senator Joni Ernst has even asked the U.S. Department of Defense to investigate New York-based S&L Aerospace Metals LLC for its potential connections to China. Although there seems to be more hesitancy and fear around Chinese-manufactured weapons, China has a large enough market to sustain itself as it stands.

Here are the largest defense contractors and weapons manufacturers in China: 

9. China National Nuclear Corporation (CNNC)

• Arms sales in 2023: $1.8 billion
• Total company revenue in 2023: $39.7 billion (4.6% arms sales)
• 1-yr. change in arms sales (inflation adj.): -1.1% (-$20.0 million)
• Notable weapons systems or services: Nuclear weapons components
• Headquartered in: Beijing
• Ranking among all defense contractors globally: 74th largest

8. China South Industries Group (CSGC)

• Arms sales in 2023: $5.1 billion
• Total company revenue in 2023: $43.9 billion (11.7% arms sales)
• 1-yr. change in arms sales (inflation adj.): -8.9% (-$500.0 million)
• Notable weapons systems or services: Type 625E AA Gun Missile Integrated Weapon System
• Headquartered in: Beijing
• Ranking among all defense contractors globally: 28th largest

7. Aero Engine Corporation of China (AECC)

• Arms sales in 2023: $5.8 billion
• Total company revenue in 2023: N/A
• 1-yr. change in arms sales (inflation adj.): +17.5% (+$860.0 million)
• Notable weapons systems or services: Aircraft engines, transmissions, turbines, and other components
• Headquartered in: Beijing
• Ranking among all defense contractors globally: 23rd largest

6. China Aerospace Science and Industry Corporation (CASIC)

• Arms sales in 2023: $8.9 billion
• Total company revenue in 2023: $27.6 billion (32.0% arms sales)
• 1-yr. change in arms sales (inflation adj.): -21.5% (-$2.4 billion)
• Notable weapons systems or services: HQ-17AE short-range missile defense, ZR-1500 integrated early warning system, FK-3000 air-defense missile weapon system
• Headquartered in: Beijing
• Ranking among all defense contractors globally: 18th largest

5. China State Shipbuilding Corporation (CSSC)

• Arms sales in 2023: $11.5 billion (estimated)
• Total company revenue in 2023: $49.0 billion (23.5% arms sales)
• 1-yr. change in arms sales (inflation adj.): +14.8% (+$1.5 billion)
• Notable weapons systems or services: Type 003 class air-craft carriers, Type 054A frigate, Coast Guard 3901 patrol vessel
• Headquartered in: Beijing
• Ranking among all defense contractors globally: 15th largest

4. China Aerospace Science and Technology Corporation (CASC)

• Arms sales in 2023: $12.4 billion (estimated)
• Total company revenue in 2023: $41.2 billion (30.0% arms sales)
• 1-yr. change in arms sales (inflation adj.): -7.6% (-$1.0 billion)
• Notable weapons systems or services: Rainbow UAV, HQ-10 short range surface-to-air missile, strategic nuclear missiles, air and missile defense equipment
• Headquartered in: Beijing
• Ranking among all defense contractors globally: 14th largest

3. China Electronics Technology Group Corporation (CETC)

• Arms sales in 2023: $16.1 billion (estimated)
• Total company revenue in 2023: $56.0 billion (28.7% arms sales)
• 1-yr. change in arms sales (inflation adj.): +12.6% (+$1.8 billion)
• Notable weapons systems or services: Air defense radar, missile control radar, surveillance radar, electronic warfare hardware and software
• Headquartered in: Beijing
• Ranking among all defense contractors globally: 10th largest

2. China North Industries Group Corporation Limited (NORINCO)

• Arms sales in 2023: $20.6 billion
• Total company revenue in 2023: $76.6 billion (26.8% arms sales)
• 1-yr. change in arms sales (inflation adj.): -2.7% (-$570.0 million)
• Notable weapons systems or services: QBZ-191 assault rifle, PF-98 anti-tank rocket launcher, Type 69 Main Battle Tank
• Headquartered in: Beijing
• Ranking among all defense contractors globally: 9th largest

1. Aviation Industry Corporation of China (AVIC)

• Arms sales in 2023: $20.9 billion
• Total company revenue in 2023: $83.4 billion (25.0% arms sales)
• 1-yr. change in arms sales (inflation adj.): +5.6% (+$1.1 billion)
• Notable weapons systems or services: J-10 Vigorous Dragon Multirole Tactical Fighter jet, Xian H-6 long-range bomber, CAIC Z-10 attack helicopter, Wing Loong 3 drone
• Headquartered in: Beijing
• Ranking among all defense contractors globally: 8th largest

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