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Chinese defence companies soar as Pakistan touts arms purchase

  • Shares of Chinese defense companies, including AVIC Shenyang Aircraft Company, surged after Pakistan announced plans to purchase 40 J-35 fifth-generation fighter jets, KJ-500 aircraft, and HQ-19 missile defense systems from China, marking China's first export of the fifth-generation jet.
  • The deal between China and Pakistan comes amid escalating tensions between Pakistan and India, with both countries engaging in recent clashes involving air, drone, and missile strikes along their shared border.
  • China's defense-industrial complex has shown progress despite corruption scandals, with recent developments including the launch of next-generation amphibious assault ships and reports of test flights of a sixth-generation fighter jet.
  • Indonesia is also considering China's offer of J-10 jets, signaling a potential shift in defense procurement dynamics in Southeast Asia.

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