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China’s Defense Industry Is Fastest Growing in Asia, Says New Market Potential Index from Jane’s by IHS Markit


11/21/2017


China’s Defense Industry Is Fastest Growing in Asia, Says New Market Potential Index from Jane’s by IHS Markit
With the Asia Pacific region. China, Japan and Australia are the countries that have the most capabilities with respect to defense industrial capabilities. This was revealed in a very recently published research report on the new Market Potential Index conducted by HIS Markit.
 
The research firm has expertise in studying issues that require analysis of critical information, analytics and solutions.
 
“What the countries at the top of this list have in common is strong government-backed research and development investment, a long-term approach to the growth of their national defense industries, and an emphasis on the involvement of domestic companies in national defense equipment programs,” the report said.
 
“Multiple factors are driving rapid industrial development across Asia,” said Paul Burton, research director at Jane’s, a collaborator for research work. “In addition to economic growth and a desire for military self-sufficiency, a complex security environment characterized by North Korea’s ongoing nuclear program, and overlapping territorial claims in the East and South China Seas are leading to rapid growth in indigenous defense production throughout Asia,” Burton said.
 
“China's defense industry has made substantial progress over the past decade towards achieving the advanced capabilities targeted by Beijing,” Burton said. “Further industrial reforms are required for China to address remaining capability gaps and attain its goal of at least parity with the world's most advanced industrialized states. Beijing continues to transform its defense industrial base from one that imitates into one that innovates,” Burton added.
 
Industrial proficiencies of almost 100 defense markets spread right across the world is tracked by the newly launched Market Potential Index form jane’s and its also gives ranks to the individual industries thus creating an excellence list. The list of global ranking is produced using a unique methodology that takes into consideration the technological sophistication and the scale of defense industrial competencies on three planes – the land, sea and in the air, in addition to capabilities in the electronics domains.
 
“What the countries at the top of this list have in common is strong government-backed research and development investment, a long-term approach to the growth of their national defense industries, and an emphasis on the involvement of domestic companies in national defense equipment programs,” said Guy Anderson, Associate director ay Jane’s’.
 
“Greater government-backed research and development investment in defense sectors has been a feature of the Asia Pacific as a whole, with regional investment having climbed 32 percent to $16.7 billion over the last five years,” Anderson said. “Over the next decade, we expect defense industrial self-reliance to increase in this part of the world, and for the defense industries of the Asia Pacific region to make a larger dent in world export markets,” Anderson said.
 
(Source:www.businesswire.com)


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