For decades, China’s defence industry carried a reputation of being a copycat manufacturer, reverse-engineering foreign technologies to build its military arsenal. However, it has transformed into a global leader, producing cutting-edge military technology. This remarkable shift from imitation to innovation reflects China’s broader ambitions to establish itself as a dominant global power, both militarily and technologically.
A Brief Overview of China’s Defense Industry
China’s defence industry traces its roots back to the 1950s when it relied heavily on Soviet assistance to build its military-industrial complex. The relationship brought much-needed technology transfer and technical expertise, enabling China to establish its defence factories. China imported weapon systems, blueprints, production facilities and teaching materials from Russia. However, the Sino-Soviet split in the 1960s disrupted this support, forcing China to focus on reverse engineering of previously imported goods.
Industry’s early years were marred by inefficiency, outdated equipment, and a lack of innovation. By the 1980s, the gap between China and advanced military powers, particularly the United States and the Soviet Union, was glaring. Recognising this, China adopted a strategy of modernisation that integrated foreign technology, a step it deemed crucial for strengthening the People’s Liberation Army (PLA). While China increased its defence production, Deng’s reform focused more on economic reconstruction, leaving China’s defence industry with huge overcapacities, which would be later used for dual use.[i]
The Era of Reverse Engineering
One prominent example is China’s reverse engineering of Soviet MiG-21 fighter jets to produce its J-7 aircraft. While these efforts often resulted in less capable copies, they provided invaluable technical experience for Chinese engineers and laid the groundwork for future advancements. Similarly, the Soviet Su-27 fighter was reverse-engineered into the J-11, which later evolved into a more advanced iteration, the J-11B, incorporating Chinese-made components.[ii]
China’s navy also benefited from this approach. In the 1990s, it acquired and studied Russia’s Kilo-class submarines, Mineral-ME fire-control and Su-27 fighter planes, altering their designs to develop its indigenous warships.[iii]
By the early 2000s, China had mastered the art of reverse engineering but was no longer content with replication. The focus shifted toward indigenization and innovation, marking the beginning of its transformation into a defence industry innovator.
Towards Innovation
The Chengdu J-20 introduced in 2011, became the first stealth fighter developed by a non-Western nation. While designs drew comparisons to the American F-22 Raptor, Russia and US accused China of copying their designs. J-20 has since evolved into an aircraft, tailored to the PLA Air Force’s specific needs.[iv]
Type 055 Destroyer was launched in 2017. Type 055 warships are multipurpose platforms and can be deployed for long-range air defence, anti-surface warfare, anti-air warfare, and anti-submarine warfare missions among others.[v] China’s defence industrial complex is central, state-run. Out of China’s nine state-run defence conglomerates, six are ranked among the top 100 defence companies globally in 2024.[vi]
Under the “Civil-Military Integration” policy, which integrates civilian and military sectors, China is heavily investing in civilian and dual-use technologies in cutting-edge fields like AI, robotics, and quantum computing. Companies like Baidu, Alibaba, Tencent and iFlytek are working to position China as a leader in next-generation military capabilities.[vii]
Challenges
However, challenges remain. Quality control, rampant corruption, and intellectual property disputes limit the growth of industries. The government’s long-standing policy of restricting profit to 5% demotivates military contractors, and limits market competition by making it unattractive for private players.[viii]
Conclusion
As China continues to innovate, its defence industry will undoubtedly shape the future of global military power dynamics. India is also accelerating its indigenous defense capabilities and production, and expanding its defence exports to counter China’s aggressive and expansive foreign policy. How the future trajectory of China’s growing defence industry will affect regional dynamics, remains to be seen.
By: Anushka Gupta, Research Assistant, CS3, USI
ENDNOTES
[i] Keith Hartley, Jean Belin. “The Economics of the Global Defence Industry,” Routledge, 2019. https://www.routledge.com/The-Economics-of-the-Global-Defence-Industry/Hartley-Belin/p/book/9781032085807?srsltid=AfmBOoqa-i7AI2h_0J1e3mHvjE1D64bis6J3n4iGT-JrazNBopy-VF7L.
[ii] Air Marshal Anil Chopra. “Not Just Stealth J-20, Here Are 8 Aircraft That China Copied From US & Russia to Develop Its Own Fighters,” Eurasian Times, October 6, 2024. https://www.eurasiantimes.com/from-j-10-to-j-20-7-fighter-jets-that-china/.
[iii] Keith Hartley, Jean Belin. “The Economics of the Global Defence Industry,” Routledge, 2019. https://www.routledge.com/The-Economics-of-the-Global-Defence-Industry/Hartley-Belin/p/book/9781032085807?srsltid=AfmBOoqa-i7AI2h_0J1e3mHvjE1D64bis6J3n4iGT-JrazNBopy-VF7L.
[iv] Subhodip Das. “China’s Reverse Engineered Weapons – a Land of Larceny,” DefenceXP – Indian Defence Network, February 5, 2024. https://www.defencexp.com/chinas-reverse-engineered-weapons-a-land-of-larceny/.
[v] Franz-Stefan Gady. “China Launches Second Type 055 Guided-Missile Destroyer,” The Diplomat, May 2, 2018. https://thediplomat.com/2018/05/china-launches-second-type-055-guided-missile-destroyer/.
[vi] “Top 100,” Defense News, https://people.defensenews.com/top-100/.
[vii] Keith Hartley, Jean Belin. “The Economics of the Global Defence Industry,” Routledge, 2019. https://www.routledge.com/The-Economics-of-the-Global-Defence-Industry/Hartley-Belin/p/book/9781032085807?srsltid=AfmBOoqa-i7AI2h_0J1e3mHvjE1D64bis6J3n4iGT-JrazNBopy-VF7L.
[viii] Ibid