GLOBAL ARMS EXPORT
I see parallels. While the jury is still out on how disruptive DeepSeek is to US big tech, its arrival has pointed to a new way forward for China, and shows that growth is still possible despite US President Donald Trump’s tariffs.
More than manufacturing electronics and apparel, Chinese companies can be good at making software, too, the thinking goes. Over time, they might just be able to gain market share in services exports, which the US dominates.
Similarly, Chinese defence companies might one day be able to sell more weapons overseas.
Between 2020 and 2024, China accounted for only 5.9 per cent of global arms exports, well behind America’s 43 per cent, according to the Stockholm International Peace Research Institute. In addition, there’s little geographical diversity; almost two-thirds of China’s weapons exports went to Pakistan.
So imagine China selling more warplanes and missiles to the Global South. Already, it’s the biggest supplier in West Africa, accounting for 26 per cent of total arms imports there. This is lucrative business: Dassault Aviation notched 17 per cent net income margin last year.
