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One notable example is China North Industries Group Corporation Limited (Norinko), responsible for much of the PLA’s ground-based weaponry. Norinko experienced a 31% decrease in revenue—the largest among Chinese arms companies—mainly because its leadership was replaced last year amid Xi’s anti-corruption drives. The removal of senior officials resulted in delays, reviews, and cancellations of major arms contracts, subsequently holding up deliveries.
Similarly, China’s Aerospace Science and Technology Corporation faced a 16% revenue decline. According to SIPRI, this was because several projects, mainly military satellites and launch vehicle initiatives, were postponed after the company’s president was dismissed amidst corruption allegations.