Homeland Security News Wire reports that the U.S. global dominance of the defense industry is eroding, with Russia and China encroaching on formerly assured markets, while South Korea, Australia, Pakistan, and India will emerge as strong competitors in the industry. This worrying overview was featured today on UPI.com.
According to the industry study, Russia, China and other nations are making inroads into the defense industry that is currently dominated by the United States, and the defense industry will be reshaped by 2020 "as both Russia and China encroach on formerly assured markets,â? the consulting firm said in a statement. South Korea, Australia, Pakistan and India, according to the study, will emerge as strong competitors in the industry â??and challenge the established producers from the West.â?
â??The defense trade relationships of the past two decades were very much shaped along Cold War lines. Those certainties are evaporating,â? said Guy Anderson, editor of Janeâ??s Industry Quarterly. While Russia moved into the market in part by using â??sovereign debt forgivenessâ? as a bargaining chip, â??most importantly, there is a willingness (on Russiaâ??s part) to use arms sales â?¦ to secure access to energy fields around the world,â? Anderson said.
Established arms exporters deal with other hurdles. â??Western firms," Anderson gos on to argue, "in many cases find themselves hampered by the presence of arms embargoes â?¦ the need to align the strategic objectives of national government with the wishes of shareholders.â?
