Armaments: US and Chinese giants dominated the global market

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U.S. and Chinese armaments companies captured the lion’s share of the global market in 2019, while the Middle East posts its first entry among the 25 largest companies in the sector, according to a Sipri Institute report released Monday.

Last year, the US arms industry accounted for 61% of sales of the world’s 25 largest producers, ahead of China at 15.7%, according to data from Sipri (International Peace Research Institute) , based in Stockholm.

The total turnover of this top 25 increased by 8.5% to reach $ 361 billion, or fifty times the annual budget of United Nations (UN) peacekeeping operations.

Six American companies and three Chinese are in the top 10. Only one European company occupies the top of the ranking, the British BAE Systems, at the 7the square.

For Lucie Béraud-Sudreau, director of the armaments and military expenditure program at Sipri, “this ranking reflects the fact that China and the United States are the two largest states in world arms expenditure, with companies cut out for it” .

If American domination is not new, for China – whose revenues of the main companies have increased by nearly 5% over one year – “this increase corresponds to the implementation of reforms to modernize the People’s Army of release since 2015 ”, continues the researcher, interviewed by AFP.

The Americans Lockheed Martin, Boeing, Northrop Grumman, Raytheon and General Dynamics occupy, in that order, the top five places in the world. The Chinese AVIC, CETC and Norinco occupy the 6e, 8e and 9e places.

“Europe still remains in dispersed order […], but if we put the European companies together, we could arrive at European companies of the same level ”as the United States and China, continues Mr.me Béraud-Sudreau.

If Airbus (European, 13e ranking) and Thales (French, 14e) can however be proud of having the strongest presence abroad (24 countries each) – ahead of the American Boeing -, this is mainly due to the fact “that European companies are more internationalized” than elsewhere , according to the researcher.

For the first time, a Middle Eastern company – EDGE in the United Arab Emirates, resulting from the merger of some 25 entities – has entered the top 25.

Sipri also notes the progress of the French group Dassault, which leaps from the 38e at the 17e place – driven by its exports of Rafale fighter jets.

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