China Military Growth Spurs Asia Demand for Boeing, Lockheed -- Bloomberg BusinessweekFeb. 10 (Bloomberg) -- China’s surging defense budget, the world’s second-biggest, is helping spur military spending across Asia, offering U.S. and European suppliers a chance to offset slowing demand at home.
Lockheed Martin Corp. and Boeing Co. fighters will be on display at next week’s Singapore Airshow as the two biggest U.S. defense contractors prepare to compete with Eurofighter and Saab AB for a $7 billion South Korean order. The contest follows similar competitions in Japan and India.
Asia-Pacific spending on fighters, missiles and other equipment is set to grow an average 4.2 percent annually to $114 billion in 2016, according to Frost & Sullivan, because of economic growth and tensions in areas including the South China Sea, the Korean peninsula and the Taiwan Strait. China’s defense budget, alone, may rise 14 percent each year through 2015, according to Goldman Sachs Group Inc.
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My Comment: And this growth in military sales can only get bigger with time.
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