China spent over $309 billion on defense in 2023, more than any other country with the exception of the United States. China’s record-high defense spending is the product of steady year-over-year increases in its military budget, in what many have called the most rapid military build up of any single country since World War II.

24/7 Wall St. Key Points:

• China’s defense budget has quadrupled over the last two decades.
• Rapid increases in China’s military spending is funding the largest military buildup of any country since the Second World War — while also funneling billions of dollars into the coffers of a handful of Chinese companies.
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China’s military spending has surged by more than 327% over the last 20 years, adjusting for inflation, and by nearly 60% in the last 10 years. On a per capita basis, China’s defense budget has grown from less than $30 per citizen in the early 2000s, to more than $200 per citizen in 2023.

The implications of China’s militarization are sounding alarm bells in the Pentagon. According to a recent report from the U.S. Department of Defense, China has expanded its nuclear arsenal to over 600 warheads, up from 500 last year. China has also improved its military readiness, greatly expanded its naval fleet, and is seeking to extend its overseas military infrastructure, potentially with new bases across Africa and East Asia. (Here is a look at what would happen if China invades Taiwan.)

The hundreds of billions of dollars China is investing in its military are not only a potential threat to American interests, they are also enriching several major Chinese defense companies. According to the Stockholm International Peace Research Institute, nine companies in China reported over a billion dollars in arms sale revenue in 2023 alone.

Using data from SIPRI, 24/7 Wall St. identified the largest Chinese weapons manufacturers. Companies are ranked on proceeds from arms sales in 2023. All revenue figures are expressed in U.S. dollars.

Among the nine companies on this list, arms sales revenue in 2023 ranged from $1.8 billion to nearly $21 billion. The companies on this list are generally large conglomerates, which produce everything from small arms to intercontinental ballistic missiles through their subsidiaries. Every company on this list is state-owned and headquartered in Beijing.

Through a series of executive orders put in place during both the Trump and Biden administrations, the U.S. has imposed sanctions on every company on this list. The orders effectively ban American investors from providing any financial backing to the Chinese defense industry. (Here is a look at how China’s military compares to that of the United States.)

These are the largest defense companies in China.

Why It Matters

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. 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.

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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