China’s Defense Budget Analysis (FY 2020), Competitive Landscape and Forecasts

China’s Defense Budget Analysis (FY 2020), Competitive Landscape and Forecasts report provides the market size forecast and the projected growth rate for the next five years. The report covers industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It also offers insights regarding key factors and government programs that are expected to influence the demand for military platforms over the forecast period.

This report discusses how maritime platforms are a significant area of investment for the PLAN. In FY2020, GlobalData estimates that US$3.2bn was put towards procuring maritime platforms, the third largest domain following land platforms (US$6.26bn) and fixed-wing aircraft (US$4.27bn).

Harry Boneham, Associate Analyst at GlobalData, comments: “This latest development could be one of the greatest foreign policy issues that President Biden is likely to face in his term. There is little appetite for direct conflict between the US and China. Regardless of the outcome of a direct matchup between the PLAN and US Navy, economic and geopolitical incentives deter overtly aggressive action on either side.

“Instead, the primary use for a large blue-water fleet would be to exert and propagate Chinese influence. As an expression of Chinese military muscle, such a fleet would enable the Chinese Government to push the issue on territorial disputes from Taiwan to the South China Sea. It may be the case that for the Biden administration, the days of the US being able to squash disputes in the Asia-Pacific region with the mere presence of the US Navy are waning.”

Currently, the PLAN is focused on the development of blue-water capabilities and has embarked upon developing itself from a coastal defense force into a robust blue-water fighting force. In addition to the third aircraft carrier expected this year, work is beginning on a fourth, shipyards such as the vital Jiangnan shipyard are being expanded, and production of Type-039A Yuan class AIP submarines is being ramped up at Wuchang. The PLAN shows no signs of stopping its expansion anytime soon.”


In particular, it provides an in-depth analysis of the following –

– The Chinese defense budget: detailed analysis of the China’s FY2020 defense budget broken down into market size and market share. This is coupled with an examination of key current and future acquisitions.

– Regulation: the procurement policy and process is explained. This is coupled with an analysis of China’s military doctrine and strategy to provide a comprehensive overview of Chinese military regulation.

– Security Environment: political alliances and perceived security threats to China are examined; there help to explain trends in spending and modernisation.

– Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years

– Competitive landscape and strategic insights: analysis of the competitive landscape of the Chinese defense industry.

Reasons to buy

– Determine prospective investment areas based on a detailed trend analysis of the Chinese defense market over the next five years

– Gain in-depth understanding about the underlying factors driving demand for different defense and internal security segments in the Chinese market and identify the opportunities offered.

– Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others

– Identify the major threats that are driving the Chinese defense market providing a clear picture about future opportunities that can be tapped, resulting in revenue expansion

– Channelize resources by focusing on the ongoing programs that are being undertaken by the Russian government

– Make correct business decisions based on in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country.

– The company profiles also includes information about the key products, alliances, recent contract awarded, and financial analysis, wherever available

Companies mentioned

Aviation Industry Corporation of China

China North Industries Group Corp

China Aerospace Science and Industry Corp

China Electronics Technology Group Corporation

China State Shipbuilding Corp

Table of Contents

Table of Contents

1. Introduction

2. Regulation

2.1. Military Doctrine and Strategy

2.2. Budgeting Process

2.3. Procurement Policy and Process

3. Security Environment

3.1. Primary Threat Perception

3.2. Political and Strategic Alliances

4. Defense Market

4.1. Current Budget

4.2. Budgeted Procurements

4.3. Forecast Procurements

4.4. Import Market Dynamics

4.5. Export Market Dynamics

4.6. Entry Strategy

5. Standing Fleet

5.1. Selected Land Platforms

5.2. Selected Air Platforms

5.3. Selected Maritime Platforms

6. Main Defense Companies

6.1. Aviation Industry Corporation of China

6.2. China North Industries Group Corp

6.3. China Aerospace Science and Industry Corp

6.4. China Electronics Technology Group Corporation

6.5. China State Shipbuilding Corp

7. Business Environment

8. About this report

8.1. Definitions

8.2. Summary Methodology

9. Appendix

9.1. About GlobalData

9.2. Disclaimer


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