Financing the Defence Industry – A Comparison of the Investment Climate in the European Union, United States and China
The global military expenditure rose by 3.7 per cent in real terms in 2022 to a record high of $2.24 trillion (Tian et al., 2023). The United States, China and the European Union (as the aggregated national expenditures of its member countries) make up the three largest (see first chart). Given the rising demand, governments and the defence industry are increasing their investments. Evaluating the strengths and weaknesses of each market will be essential in determining the necessary steps forward.