Beijing/New Delhi, – Following the India-Pakistan ceasefire, Chinese defence companies faced a significant setback as their stock prices tumbled, reflecting the failure of Chinese-manufactured drones and missiles used by Pakistan in recent attacks. India’s advanced air defence systems effectively neutralized these assaults, exposing vulnerabilities in the Chinese weaponry that Pakistan heavily relied upon.
The Hang Seng China A Aerospace and Defence Index recorded a sharp decline of 3% in the wake of the ceasefire. Reports indicate that between 2020 and 2024, China was Pakistan’s largest arms supplier, accounting for 81% of its total arms imports. In comparison, the Netherlands contributed 5.5% and Turkey 3.8% to Pakistan’s arms trade during the same period.
A major player in this sector is the Aviation Corporation of China, a state-owned defence conglomerate that oversees numerous design institutes and manufacturing facilities. The poor performance of its systems in real-world combat scenarios has raised concerns about the reliability of Chinese military hardware, particularly as Pakistan’s dependence on these exports has grown. The market downturn underscores broader implications for China’s defence industry, which has been a cornerstone of its military exports to allied nations like Pakistan.
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