The escalating India-Pakistan conflict is giving the world its first live glimpse of how China’s advanced military technology performs in real combat, and Chinese defence stocks are already soaring.
The Showdown: Chinese Jets vs. Western Hardware
This week, Pakistan claimed it shot down Indian fighter jets — including French-made Rafales — using Chinese-made J-10C jets, produced by AVIC Chengdu Aircraft. Shares in AVIC surged 40% this week. While India hasn’t confirmed losses, the claims have drawn global attention, framing the clash as not just a regional battle but a proxy test between Chinese and Western military tech.
Pakistan’s air force now relies heavily on Chinese J-10CEs and JF-17 Block IIIs, both advanced 4.5-generation fighters, alongside aging U.S.-made F-16s. India, meanwhile, fields Rafales, Su-30s, and MiG-29s, drawing increasingly on Western weapons after cooling ties with Russia.
China Becomes Pakistan’s Main Arms Supplier
China now supplies over 80% of Pakistan’s imported weapons, according to SIPRI. This includes jets, missiles, radars, and air defense systems, many co-developed or built with Chinese tech. As the U.S. froze arms sales to Pakistan over terrorism concerns, Beijing filled the vacuum, becoming Islamabad’s closest military backer.
China’s Foreign Ministry called for “calm and restraint”, but behind the scenes, Beijing is watching carefully. Craig Singleton, senior fellow at the Foundation for Defense of Democracies, says the clash is “a glimpse of how Chinese defense exports are reshaping regional deterrence.”
Market Impact and Global Attention
Reports suggest Pakistan’s J-10C jets may have used PL-15 long-range missiles to down Indian Rafales — a major credibility boost if confirmed.
Chinese defense stocks reflect this excitement: AVIC shares jumped 17% on Wednesday and another 20% Thursday, riding a wave of nationalistic pride and investor enthusiasm.
Not Just About Weapons — Tactics Matter: Experts caution the clash isn’t just about hardware. Indian losses (if confirmed) could stem from tactical or planning failures, not simply technological gaps. At the same time, Indian strikes successfully hit Pakistani targets, penetrating Chinese-supplied HQ-9B air defences — a dent in China’s reputation as an air defence provider.
Global Stakes and a Changing Balance: Beyond the battlefield, this moment matters because it tests China’s military modernization — and its rising challenge to U.S. influence. Antony Wong Dong, a Macau-based military observer, calls this clash “a powerful advertisement” for Chinese defense exports, but warns: “It will shock even the U.S. — just how strong is its opponent, really?”
This India-Pakistan flare-up isn’t just another border clash — it’s the first live-fire proving ground for Chinese military exports on the global stage, with far-reaching consequences for arms markets, geopolitics, and the future balance of power.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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