China's military firms struggle as corruption purge bites, report says

1/12/2025 17:42

Revenues at China's giant military firms fell last year as corruption purges slowed arms contracts and procurement, according to a study released on Monday by a leading conflict think tank. The Chinese declines contrast with strong revenue growth globally for big arms and military-services companies, fuelled by wars in Ukraine and Gaza, and global and regional tensions, the research by the Stockholm International Peace Research Institute found.



"A host of corruption allegations in Chinese arms procurement led to major arms contracts being postponed or cancelled in 2024," said Nan Tian, director of SIPRI's Military Expenditure and Arms Production Programme.



The People's Liberation Army was one of the main targets of a broader corruption crackdown ordered by President Xi Jinping in 2012, reaching the upper levels of the military in 2023 when its Rocket Force was targeted.



Eight top generals were expelled from the ruling Communist Party on graft charges in October, including the country's number two general, He Weidong. He had served under Xi on the Central Military Commission, China's supreme military command organisation.