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China's arms exports declined by 10% as of December 2025, per SIPRI, despite its military expansion in Asia. While South Korea and Japan saw growth in defense exports, China's internal issues, such as corruption and military purges, affect its export performance.

The purges highlighted instability within the Chinese military, raising concerns among potential buyers regarding reliability. Additionally, China is rapidly expanding its nuclear capabilities, now exceeding 600 warheads, amid tensions with Japan and Taiwan. This growing military visibility does not translate into stronger arms sales, challenging China's position in the global arms market.