Table of Contents
- 1 Expansion of Chinese military spending… Narrowing the gap in naval power with the United States
- 2 Impact of military spending on the economy
- 3 The impact of China’s military industry on neighboring countries
- 4 In what ways has China’s military spending reshaped the domestic job market and industrial sectors?
Entered2024.11.19 06:29 Modified2024.11.19 06:41
Hankyung.com The Money East
China’s military industry has become an economic and military threat
China’s military exerts enormous influence on politics and economy
Helicopter of the Chinese People’s Liberation Army. The photo and article are unrelated./Photo=XINHUA The Chinese military exerts enormous influence not only on political power but also on the economy. China’s military industry straddles both state-run and private enterprises and leads the industry in the development and application of new technologies. Although China is experiencing slowing growth due to various factors such as real estate stagnation, sluggish consumption, overproduction, debt problems, inflation, sluggish exports, and exchange rates, its military industry is continuing to advance and grow continuously.
China is steadily increasing its military spending and is evaluated as narrowing the gap with the United States. Recently, U.S. President-elect Donald Trump said in his first phone call with President Yoon Seok-yeol that Korea’s help is needed to rebuild the U.S. shipbuilding industry. The United States was the country with the world’s largest shipbuilding capacity until the mid-20th century, but it lost its ability to build warships due to the Jones Act, and the gap in naval power with China is narrowing.
The core of China’s military is the Central Military Commission (CMC). The Central Military Commission is the agency that oversees and guides China’s armed forces, including the People’s Liberation Army. Although Mao Zedong (毛澤東) stepped down from the position of Chairman of the State due to political mistakes, he did not offer up the position of Chairman of the Party’s Central Military Committee until his death. Deng Xiaoping also ruled China as Chairman of the Party’s Central Military Commission from 1981 to 1989.
After completing his term, Jiang Zemin handed over the positions of President and General Secretary of the Party to his successor Hu Jintao in 2002, but did not hand over the most important position of Chairman of the Central Military Commission for another year and 10 months. It wasn’t. China’s legal head of state is the president. However, since the Chairman of the Central Military Commission of the Chinese Communist Party is in charge of military forces, it can be said that the Chairman of the Central Military Commission is the de facto head of state and head of government.
Impact of military spending on the economy
China’s military industry occupies a game-changing position not only in the national economy but also in the global defense industry market. This is because we are targeting emerging markets based on price competitiveness.
China is accelerating its military modernization. The Navy is increasing the construction of large ships such as aircraft carriers and destroyers, and the Air Force has begun mass production and development of stealth fighters to strengthen strategic deterrence and long-distance strikes. Additionally, the Rocket Force is investing a lot of money in the development of precise missile systems to enhance its nuclear capabilities and conventional missile strike capabilities.
The increase in China’s military spending is having a positive impact on the overall economy as it drives the development of the military industry and significantly contributes to employment stability. Although China’s military spending appears to be a low percentage of gross domestic product (GDP), experts believe that it is actually higher.
The impact of China’s military industry on neighboring countries
China’s state-owned defense companies are taking on the role of military intelligence and military-civilian integration to realize the so-called ‘strong military dream.’ The core value of China’s military industry is changing from traditional weapons production to cutting-edge aerospace industry. The Chinese military is active in transferring or applying technology to civilian industry. In particular, public-private partnerships in the fields of 4th Industrial Revolution technologies such as hypersonics, artificial intelligence (AI), space technology, cyber security, electronic warfare, machine learning (ML), quantum computing, and unmanned technology. Through this mutual cooperation, we began to secure global competitiveness.
In China, technology and human resource exchanges between the military and companies are also active. There are many cases where soldiers go to work at companies or company employees receive training at the military. The Chinese military supports the export of military supplies in international trade and also protects and supports certain industries for national security.
The rapid progress of China’s military industry has also caused geopolitical tensions, and Korea, along with Taiwan, is classified as a country directly affected. The ‘Trump second term’ administration is expected to pursue policies centered on its own interests. During the election campaign, Trump already announced that he would strongly suppress and block China by imposing a 60% punitive tariff on Chinese exports to the United States.
Photo = Getty Image Bank Korea has emerged as the world’s leading arms exporter. The reason why Korea’s arms sales are booming is because it has invested in the defense industry for a long time and has achieved competitiveness by domestically producing cutting-edge technology. This is because the country is adopting a strategy of transferring weapons production technology to weapons importing countries. We also need a forward-looking stance to leverage our strengths and use exporting countries as our strategic partners.
China is a country where politics and economy are consistent, and the military has a strong influence on the economy. We are in a situation where we must cooperate with the United States’ front line to keep China in check. If we are not fully prepared for the US-China trade conflict and China’s military industry, we will face a crisis. This is because China’s military, economic, and social retaliation against Korea may continue.
Cho Pyung-gyu, Doctor of Business Administration, Director of the Korean Peninsula Advancement Foundation
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In what ways has China’s military spending reshaped the domestic job market and industrial sectors?
1. Can you explain China’s military organization and its significance in the country’s political and economic landscape?
2. How has China’s military spending impacted the domestic economy, and what role does the military industry play in driving growth?
3. What are some specific areas of military modernization that China is currently focusing on, and what are the implications for its neighbors and the global balance of power?
4. How does China’s approach to technology transfer and cooperation between the military and private sector impact its military industry?
5. What strategies has Korea adopted to become a top global arms exporter, and how can it maintain this position in light of shifting geopolitical dynamics?
6. Discuss the potential risks and benefits of deepening ties between Korea’s defense industry and China’s military sector.
