Time for China to Move From ‘Product Export’ to ‘System Export’ in Aviation Arms Trade: NPC Deputy

China is increasingly pushing for a strategic shift in its defence industry — moving beyond simply exporting military products to becoming a global exporter of fully integrated defence systems. That was the message delivered this week by NPC Deputy Zhang Wei, a member of the National People’s Congress, during a high‑profile defence industry forum in Beijing. Zhang’s comments underscore China’s ambitions to compete more directly with the United States and other major arms exporters in the global aviation and military hardware market.
“The era in which we are content to sell standalone products — fighters, missiles, radars — must give way to a pursuit of complete systems that integrate across air, space, and cyberspace,” Zhang told delegates. “This is not just an industrial upgrade, but a strategic imperative if China is to deepen partnerships with foreign militaries and contribute to international security.”
From “Product” to “System” Export
For decades, Chinese defence exports have primarily consisted of “products”: individual platforms such as aircraft, helicopters, surface‑to‑air missiles, and naval vessels. Many of these offerings — notably the Chengdu J‑10, Hongdu L‑15, and various drone types — have found buyers in Africa, Southeast Asia, and the Middle East, particularly among countries seeking more affordable alternatives to Western hardware.
However, the global arms trade has increasingly shifted toward integrated systems — packages that include not just the hardware itself but command‑and‑control infrastructure, logistics support, training, and ongoing upgrades. Western defence firms, particularly those in the United States and Europe, now sell such systems to allied militaries, bolstered by long‑term service contracts and interoperability with existing Western military networks.
Zhang emphasised that China must position itself to offer not just platforms, but “complete solutions” for prospective buyers. “Our emphasis must move from what the hardware can do on its own to what it can achieve in the context of a broader defence ecosystem,” he said, echoing similar calls from senior equipment designers and People’s Liberation Army (PLA) strategists.
Strategic Rationale and Global Context
China’s defence industry has made impressive strides in recent decades. Its jets, UAVs, and missiles now rival many Western designs on performance metrics, and Beijing has steadily improved its ability to produce advanced microelectronics, sensors, and propulsion systems. Yet its share of the international arms market remains significantly smaller than that of the United States Department of Defense and European exporters such as France’s Dassault Aviation and the United Kingdom’s BAE Systems.
According to SIPRI arms transfer data, China accounted for roughly 5 per cent of global major arms exports in recent years, compared with about 37 per cent for the United States. European exporters together held another large share. China’s market presence is strongest in nations that often face sanctions or restrictions on Western equipment, including Pakistan, Myanmar, and some African states.
By promoting system exports, China hopes to expand beyond these traditional markets and appeal to countries seeking high‑end, interoperable defence solutions without political restrictions tied to Western alliances. This could include emerging aviation systems tied to integrated air‑defence networks, logistics‑management suites, and even cyber‑enabled maintenance systems that increase uptime and reduce lifecycle costs.
Aviation and the Arms Trade
Aviation remains at the centre of this strategic shift. Integrated solutions in the aviation domain now include not just the aircraft themselves but weapons payloads, datalinks, sensor fusion packages, and training simulators that allow air forces to operate effectively as part of multi‑domain battle networks.
Zhang cited recent advances by China’s defence conglomerates — including Aviation Industry Corporation of China (AVIC) and China Aerospace Science and Industry Corporation (CASIC) — as evidence that China now has the industrial base to pursue integrated offerings. “We have matured to the point where we can offer not just discrete aircraft but entire aerial ecosystems that include surveillance, strike, and defensive capabilities working in concert,” he said.
Challenges and Skepticism
Despite the ambition, analysts warn that China faces several obstacles in making the leap from product to system exporter. These include questions about interoperability with existing military frameworks in buyer countries, intellectual property concerns, and political apprehension — particularly among nations wary of close ties with Beijing.
There are also internal challenges. China’s defence industry has historically focused on producing equipment for its own PLA needs, which do not always translate directly to export markets. Building robust after‑sales support networks — critical for system exports — requires investment in foreign infrastructure and long‑term commitments that many Chinese firms have historically been reluctant to make.
What This Means for the Global Arms Market
If China succeeds, the implications for the global arms trade could be significant. Western exporters, which have long dominated the market for integrated defence systems, could face increased competition in regions where cost, neutrality, and fewer political strings are attractive to buyers. Additionally, a more competitive Chinese offer could encourage buyers to demand better terms and interoperability regardless of source, potentially raising capabilities across multiple regions.
Zhang’s comments signal a strategic recalibration within China: an effort to redefine its role not just as a producer of defence hardware, but as a provider of complex, sustained defence solutions. Whether that shift takes hold will depend on China’s ability to build trust with buyers, invest in global support infrastructure, and continue improving the technological sophistication of its offerings.