China defence industry enters in the top 5 of the biggest arms and military equipment exporters 1803.

The five biggest importers in 2008–12 were India, China, Pakistan, South Korea and Singapore. The flow of arms to Asia and Africa increased notably between 2008–12 and 2003–2007, while flows to Europe and the Middle East decreased. Among the noteworthy deliveries in 2012 were China’s com- missioning of its first aircraft carrier and India’s receipt of an Akula nuclear- powered submarine from Russia.

The USA and Russia remained by far the largest exporters of arms. The volume of arms exported by the top 5 suppliers in 2008–12 was 14 per cent higher than the volume exported by the top 5 suppliers in 2003–2007; however, their collective share of total exports dropped from 78 per cent to 75 per cent. For the first five-year period since 1950, the UK was not among the top 5 suppliers in 2008–12: China displaced it to become the fifth largest exporter.

The volume of Chinese exports of major conventional weapons rose by 162 per cent between 2003–2007 and 2008–12, and China’s share of the volume of international arms exports increased from 2 to 5 per cent. As a result, for the first time since 1986–90, China ranked as the fifth largest suppliers of major arms. During 2008–12 Asia and Oceania received 74 per cent of the volume of Chinese arms exports and Africa 13 per cent.

Pakistan—which accounted for 55 per cent of Chinese arms exports—is likely to remain the largest recipient of Chinese arms in the coming years due to large outstanding and planned orders for combat aircraft, submarines and frigates from China. Recent major deals indicate that China is establish- ing itself as a substantial arms supplier to a growing number of large arms recipients, including Algeria, Morocco and Venezuela.