What is the secret to success as an arms exporter? Repeat business.
Countries buy arms from certain suppliers for specific reasons: performance, reliability, cost, alliance politics, and so on. An important sign of success as an arms producer is building up a large and reliable overseas customer base—countries that return, year upon year, to buy additional weapons.
As it stands, China remains pretty much a niche player in the global arms market. It sells most of its weapons to a very small number of countries. Over the past 20 years, for example, more than 60 percent of all Chinese arms sales went to just three countries: Bangladesh, Burma (Myanmar), and Pakistan.
Beijing has had several customers who bought Chinese weaponry—in some cases, quite a lot—for a period of time but then ceased. Examples include Algeria, which, between 2014 and 2016, purchased $900 million worth of arms from China but then pretty much halted further buys. Egypt, Iran, Sri Lanka, and Turkey all acquired Chinese weaponry during the 2000s but then stopped buying in the 2010s and 2020s.
In comparison, over the same period (2003–2022), more than three dozen countries consistently purchased (that is, almost every year) arms from the United States.
This begs the question: if current Chinese weapons systems are really that good, then why is their appeal so limited? Why is their traditional customer base still so small? In fact, one might infer from the large number of “one-shot” sales that most Chinese arms, while certainly better than what they used to be, are still no more than “good enough for government work,” and that other foreign weapons systems—Western, Russian, and Israeli—still outclass Chinese arms in most respects.
During that same period, Western journalists who toured Chinese aircraft production facilities found “rough lap joints,” “sloppy cockpit transparency sealing,” and “coarse rivet finishing” in various types of Chinese fighter jets.
Moreover, in many cases, the Chinese were uninterested making right its poor quality and performance. Islamabad couldn’t get Beijing to repair and overhaul the frigates it sold to Pakistan, so it contracted out the upgrade program to Turkey.
Overall, few countries are lining up to buy other Chinese weapons systems, or, if they are, they are throwing out Chinese parts and replacing them with Western systems. This is because China’s defense industry is still very weak when it comes to key technologies like jet engines and electronics. Algeria, for example, bought corvettes from China but subsequently outfitted them with French radar and communications gear. Meanwhile, Thailand turned to Saab of Sweden to upgrade its Chinese-built frigates, while Pakistani JF-17 jets use a Russian engine and a British ejection seat.
China’s strength as an arms exporter remains, as it had for decades, at the low end of the business, offering basic equipment at rock-bottom prices with few strings attached. In particular, Beijing tries to dominate those types of armaments that could be considered “commodities”—weapons that are basically the same in terms of technology, are not technologically demanding, and where low cost is often the key determining factor. Examples include small arms, ammunition, artillery rounds, and light armored vehicles. China has also carved out a particularly lucrative niche for itself in selling armed drones.
Even then, factors like quality, reliability, and performance will continue to affect Chinese sales, especially follow-on orders. If China cannot improve in these areas, many of its first-time customers will drift away. They will truly be “one and done.”