
Chinese defence stocks surge as Pakistan signals major arms deal: report
Shares of Chinese defence firms soared on Monday after Pakistan announced plans to acquire a significant package of military equipment from Beijing, including one of China's most advanced stealth fighter jets, according to a Bloomberg report.
The government of Pakistan, in a social media post last Friday, said it would purchase 40 J-35 fifth-generation stealth fighter jets, KJ-500 airborne early warning and control (AEW&C) aircraft, and HQ-19 ballistic missile defence systems. China's Ministry of Defence has not officially commented on the announcement.
Bloomberg reported that AVIC Shenyang Aircraft Company, which manufactures the J-35 fighter, surged by its 10 percent daily limit in Shanghai, marking the third straight session of gains.
The rally extended to other defence companies, including Aerospace Nanhu Electronic Information Technology Co., which saw its shares rise as much as 15 percent.
The rise in Chinese defence stocks comes amid growing confidence in the effectiveness of Chinese military hardware following recent border clashes between Pakistan and India.
Last month, Pakistan claimed that its Chinese-supplied J-10C fighter jets were involved in successfully shooting down six Indian aircraft, including French-built Rafale jets.
While India dismissed those claims and downplayed the performance of foreign-supplied weaponry, it later confirmed that it had lost an unspecified number of fighter jets in the early May conflict.
Indian Chief of Defence Staff Anil Chauhan acknowledged the losses during a May 31 interview, without providing further details.
Military tensions between the two nuclear-armed neighbours flared up in early May, with both sides reportedly engaging in air, drone and missile strikes, along with cross-border artillery and small-arms fire, particularly along the Line of Control (LoC).
Previous reports had highlighted the effectiveness of Chinese-made platforms like the J-10C in active combat has significantly raised their credibility in the global arms market.
According to Bloomberg, this latest deal would mark China's first-ever export of the J-35 stealth fighter, first publicly unveiled at the 2024 Zhuhai Airshow.
The inclusion of KJ-500 AEW&C aircraft is expected to substantially improve Pakistan's radar coverage, given the system's advanced electronic warfare capabilities and operational agility.
The HQ-19 surface-to-air missile system would enhance Pakistan's air defence, particularly against ballistic missile threats.
Defence analysts say the procurement reflects Pakistan's ongoing efforts to upgrade its military preparedness amid sustained regional volatility.
At the same time, China continues to expand its influence as a global arms exporter by offering cutting-edge technology at relatively lower costs than its Western counterparts.
Despite facing periodic scrutiny over corruption in its military-industrial complex, China has accelerated the development of advanced defence platforms.
In December 2024, Beijing launched the world's largest next-generation amphibious assault ships, drawing international attention.
Business Recorder also recently reported that Indonesia, traditionally reliant on military equipment from the United States and Russia, is now considering China's offer to sell J-10 fighter jets, signalling a shift in regional defence procurement trends.
In a broader context, China's military-industrial progress appears to be part of a strategic vision to extend influence not just in the arms sector but also in dual-use domains.
The J-35 sale, if confirmed, could further boost investor confidence in China's ability to compete in the high-end defence export market dominated by the United States and European powers.
While formal details of the deal are still awaited, analysts say the announcement marks a milestone in Sino-Pakistan defence cooperation, with implications for both regional stability and global arms dynamics.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Business Recorder
3 hours ago
- Business Recorder
Oil up 1% at 7-week high on hopes of positive US-China trade talks
NEW YORK: Oil prices edged up 1% to a seven-week high on Tuesday on hopes trade talks between the U.S. and China - the world's two biggest economies - will result in a deal that could support global economic growth and boost oil demand. Brent crude futures rose 81 cents, or 1.2%, to $67.85 a barrel by 11:22 a.m. EDT (1522 GMT), while U.S. West Texas Intermediate crude rose 83 cents, or 1.3%, to $66.12. Those gains pushed both crude benchmarks into technically overbought territory for the first time since early April and put Brent on track for its highest close since April 17 and WTI on track for its highest close since April 3. U.S. Commerce Secretary Howard Lutnick said trade talks with China were going well as the two sides met for a second day in London, seeking a breakthrough on export controls that have threatened a fresh rupture between the superpowers. 'There's a sense of optimism around these trade talks; the market is waiting to see what this will produce, and that is supporting prices,' said Harry Tchilinguirian, group head of research at Onyx Capital. On the supply side, allocations to Chinese refiners showed that Saudi Arabia's state oil company Saudi Aramco will ship about 47 million barrels of oil to China in July, 1 million barrels less than June's allotted volume, Reuters reported. The Saudi allocations could be an early sign that the unwinding of OPEC+ production cuts might not result in much additional supply, Tchilinguirian said. Saudi Arabia cuts July oil prices to Asia to 4-year low after OPEC+ supply boost OPEC+, which pumps about half of the world's oil and includes the Organization of the Petroleum Exporting Countries (OPEC) and allies like Russia, put forward plans for an output increase of 411,000 barrels per day (bpd) for July as it looks to unwind production cuts for a fourth straight month. A Reuters survey found that OPEC's May increase to oil output was limited, with Iraq, the second biggest OPEC producer behind Saudi Arabia, pumping below target to compensate for earlier overproduction, and Saudi Arabia and the United Arab Emirates making smaller increases than agreed. Elsewhere, Iran said it would soon make a counter-proposal for a nuclear deal in response to a U.S. offer that Tehran deems 'unacceptable', while U.S. President Donald Trump made clear that the two sides remained at odds over whether Tehran would be allowed to continue enriching uranium on Iranian soil. Iran is the third-largest OPEC producer and any easing of U.S. sanctions on Tehran should allow Iran to export more oil, which should reduce crude prices. In Europe, meanwhile, the European Commission proposed an 18th package of sanctions against Russia for its invasion of Ukraine, aimed at Moscow's energy revenues, banks and military industry. Russia was the world's second biggest crude producer in 2024 behind the U.S., and any increase in sanctions will likely keep more of that oil out of global markets, which could support oil prices. US oil inventories and exports The American Petroleum Institute (API) trade group and the U.S. Energy Information Administration (EIA) are due to release U.S. oil inventory data on Tuesday and Wednesday, respectively. Analysts forecast energy firms added about 0.1 million barrels of oil to U.S. stockpiles during the week ended June 6. If correct that would be the first storage increase in three weeks and compares with an increase of 3.7 million barrels during the same week last year and an average increase of 2.8 million barrels over the past five years (2020-2024).


Business Recorder
4 hours ago
- Business Recorder
India and US advance toward interim trade deal after four-day talks
NEW DELHI: Indian and U.S. negotiators made progress in their latest round of talks in New Delhi on Tuesday on a bilateral trade deal, having focused on market access for industrial and some agricultural goods, tariff cuts and non-tariff barriers, Indian government sources said. 'The negotiations held with the U.S. side were productive and helped in making progress towards crafting a mutually beneficial and balanced agreement including through achievement of early wins,' one of the sources said. The U.S. delegation, led by senior officials from the Office of the U.S. Trade Representative, held closed-door negotiationswith Indian trade ministry officials headed by chief negotiator Rajesh Agrawal. Both sides discussed increasing bilateral digital trade, by improving customs and trade facilitation measures, the sources said, adding that 'negotiations will continue' for early conclusion of the initial tranche of the trade pact. U.S. President Donald Trump and Indian Prime Minister Narendra Modi had agreed in February to conclude a bilateral trade agreement by fall 2025 and to more than double bilateral trade to $500 billion by 2030. India, US push to finalise interim tariff deal as Trump's deadline nears The two sides are expected to sign an interim agreement by the end of the month, before the expiry of Trump's 90-day pause on reciprocal tariffs on major trading partners, including a 26% tariff on India. Commerce Minister Piyush Goyal, currently in Switzerland for talks with European trade partners, said India is prepared to proceed with the deal by first addressing simpler issues. The next phase of negotiations could tackle more complex matters, with the goal of signing the first tranche of the bilateral trade pact by September or October, the officials added. India resisted U.S. demands to open its markets to wheat, dairy and corn imports, while offering lower tariffs on high-value U.S. products such as almonds, pistachios and walnuts, one of the sources said. India also asked the U.S to revoke its 10% baseline tariff. However, the U.S. side opposed this, noting that even Britain was subject to this under its recent bilateral trade agreement. Trump says US doing 'big deals' with Pakistan, India Additionally, India sought an exemption for its steel exports from a 50% tariff. A potential 26% tariff on India would be devastating to Indian goods - including rice, shrimp, textiles and footwear, which together comprise nearly one-fifth of India's merchandise exports - and could severely hit exports and dampen foreign investment inflows. India has pledged to increase purchases of American goods, including energy products like liquefied natural gas, crude oil, coal and defence equipment. India's exports to the U.S. rose 28% to $37.7 billion in the first four months of 2025, while imports increased to $14.4 billion, widening India's trade surplus, according to U.S. government data.


Business Recorder
6 hours ago
- Business Recorder
India disrupting Indus Water flows: Musadik Malik
Federal Minister for Climate Change and Environmental Coordination Musadik Malik accused India of using dams to disrupt the flow of the Indus River system reported Bloomberg on Tuesday. 'India is manipulating the flow of rivers that run into Pakistan by holding and releasing, holding and then flooding,' he was quoted as saying during an interview with Bloomberg. The minister added how India lacks the storage capacity to completely stop the water, noting that when the water was needed for crop sowing, 'it was not available' over the past month. He also said their neighbour was doing this 'to disturb crop patterns and the food security of Pakistan'. Following the April 22 attack, Indian Prime Minister Narendra Modi ordered officials to expedite planning and execution of projects on the Chenab, Jhelum and Indus rivers, three bodies of water in the Indus system that are designated primarily for Pakistan's use, reported Reuters. About 80% of Pakistani farms depend on the Indus system, as do nearly all hydropower projects serving the country of some 250 million. Any efforts by Delhi to build dams, canals or other infrastructure that would withhold or divert significant amount of flow from the Indus system to India 'would take years to realise,' said water security expert David Michel of the Washington-based Center for Strategic and International Studies. There will be no compromise on water, says Bilawal Meanwhile, in the interview, Malik added, 'Because they don't have storage dams, they have not been able to materially affect us.' 'If they start to build storage dams, it would be deemed as an act of war,' he said.