US arms dealers reap huge profits from war

Source
China Military Online
Editor
Li Weichao
Time
2024-02-02 16:40:05

By Lou Kexin

A report recently released by the US Department of State has drawn global attention. The US saw a 16 percent increase in foreign military sales, reaching a record-breaking USD 238 billion in 2023. Among them, sales directly negotiated by the US government amounted to USD 80.9 billion, a 56 percent increase from 2022, and commercial sales by US companies reached USD 157.5 billion, an increase of 2.5 percent.

2023 witnessed another year of the US reaping profits from wars. The reasons behind this surge are not difficult to discern. On the one hand, the ongoing Russia-Ukraine conflict and Palestine-Israel conflict, coupled with sporadic regional conflicts worldwide, have intensified the complexity of the security environment. In this context, many countries must strengthen their defense capabilities through arms purchases. On the other hand, the increasing demands for modernized equipment have significantly raised the threshold for arms sales. The US, known for its longstanding strategy of "achieving military dominance through warfare," has leveraged its military sales to gain practical battlefield experience and data. Meanwhile, it has made constant efforts to make improvements in this respect, thus capturing a larger market share.

Then, where did the US weapons specifically go in 2023?

Ukraine's neighboring country, Poland, made substantial purchases of US weapons in the past year, including USD 12 billion worth of Apache helicopters, USD 10 billion worth of the High Mobility Artillery Rocket System (HIMARS), and USD 3.75 billion for M1A1 Abrams tanks. Additionally, there was a USD 4 billion order for an integrated air defense and missile defense operations command system.

In 2023, the US also sold USD 8.5 billion worth of CH-47 Chinook helicopters and USD 3 billion worth of advanced medium-range air-to-air missiles to Germany, USD 1.5 billion worth of Stryker armored vehicles to Bulgaria, USD 1 billion worth of utility helicopters to Norway, and USD 5.6 billion worth of F-35 fighter jets and ammunition to the Czech Republic. According to multiple foreign media outlets, the Russia-Ukraine conflict has facilitated numerous substantial arms sales orders for the US, as European countries found themselves compelled to purchase military equipment from the US to fill the gaps resulting from supporting Ukraine.

Over the past year, US arms sales in the Asia-Pacific region have also attracted attention. For example, the ROK spent USD 5 billion purchasing F-35 fighter jets, Australia paid USD 6.3 billion for C130J-30 Super Hercules transport aircraft, and Japan reached a USD 1 billion agreement with the US for the E-2D Advanced Hawkeye early warning aircraft.

The US carried out emergency arms sales to Israel following a new round of Palestinian-Israeli conflict since October 2023. Data shows that the US had provided Israel with at least tens of thousands of tons of military equipment by the end of 2023.

Conflicts and wars bring profound disasters to ordinary people but have proven lucrative for the US military-industrial complex. Through intricate arrangements, the US has formed a vast interest group comprising the military, arms dealers, lawmakers, defense research institutions, think tanks, and media. The stocks of the US military-industrial complex initially declined after the US withdrew from Afghanistan in August 2021. For instance, Lockheed Martin's stock fell by 18 percent. However, with the outbreak of the Russia-Ukraine conflict in February 2022, the US military-industrial complex quickly turned around. Lockheed Martin's stock saw an increase of over 25 percent, and RTX's stock surged by more than 50 percent. In October of the previous year, Jason Aiken, Chief Financial Officer of General Dynamics, revealed that the company's combat systems department that produces armored vehicles, tanks, and artillery, saw a nearly 25 percent year-on-year revenue growth.

The gains for the US go beyond these. As evident from the report by the US Department of State, the 2023 arms sales align with the US global strategic layout. From fanning the flames of the Russia-Ukraine conflict to advancing the so-called Indo-Pacific strategy and unconditionally supporting Israel, as stated by the US Department of State, "Arms transfers and defense trade are important US foreign policy tools with potential long-term implications for regional and global security." The US government acts as a salesperson for arms to enhance its influence in Europe, the Asia-Pacific, the Middle East, and other regions and seize geopolitical interests.

The record-breaking arms sales make it clear that the more chaotic the world becomes, the more the US benefits. The strategy of "achieving military dominance through warfare" has enriched US arms dealers but has brought war and turmoil to the world. Does the US care about the lives of the Ukrainian people? Does the US think about the harm suffered by European allies? Is the US concerned with the security of people in the Asia-Pacific? The financial conglomerates and arms dealers in the US remain silent on these questions as they are busy celebrating with champagne.

Editor's note: Originally published on news.cri.cn, this article is translated from Chinese into English and edited by the China Military Online. The information and opinions in this article do not necessarily reflect the views of eng.chinamil.com.cn.

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