I’ve been banging on this drum for quite some time. In short, I’ve been skeptical of all those China demonizers in the U.S. who are somehow connected to big military contractors. We’re talking big money from these contracts, and this translates not only into nice big campaign contributions, but also cushy jobs for politicians when they get out of office.

Terrorism has been good, but that fight is quickly running out of scare power. Sure, the drone aircraft companies will still make money in some of these countries, but the big payouts require a much scarier enemy.

Enter China, with a growing inscrutable defense budget, scary political structure, and unknown intentions. And anyway, the West still hasn’t gotten over that embarrassing Macartney Mission.

But while I’ve been focusing on contracts with the Pentagon, I’ve been remiss in mentioning all that money these companies are making from Asian nations that are building up their defensive arsenals to respond to a rising China.

Not to worry, Bloomberg is on the case:

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.

Oh man, it sure is good to be in the war business these days, isn’t it? Keep up that China bashing and everyone will get rich!

© Stan for China Hearsay, 2012. | Permalink | 7 comments | Add to del.icio.us
Post tags: defense spending, military