China · Pentagon · Japan · South Korea · Fortune Technology
In early 2026, the U.S. Department of Defense unveiled is set to expand Asian production of solid rocket motors for guided
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Asia is also becoming a critical supplier for Europe, the Middle East, and Southeast Asia.
Key facts
- In 2025, Asia’s defense spending rose 6% to approximately $573 billion, outpacing global defense growth (which currently sits at roughly $2.6 trillion)
- South Korea’s Hanwha Aerospace kicked off Asia’s land systems exports to Europe in 2022, while LIG Defense & Aerospace recently stood out as the supplier of missile interceptors (known as MSAM-II)
- Because of long build times, heavy upfront investment, and decades of maintenance, naval programs resemble infrastructure investments, with project cycles lasting 10 to 20 years rather than short
- In early 2026, the U.S. Department of Defense announced plans to expand Asian production of solid rocket motors for guided weapons, drones, and ammunition
Summary
For decades, arms sales went in one direction: the U.S. and Western Europe designed and supplied the world’s most advanced weapons, and Asian countries bought them. But that flow is quickly reversing as Asia, once an arms importer, is now emerging as a hardware manufacturer and arms exporter, driving the global defense industry in a more multipolar world. Japan’s recent decision to loosen its arms export restrictions is the clearest signal yet of Asia’s changing role in global defense. In 2025, Asia’s defense spending rose 6% to approximately $573 billion, outpacing global defense growth (which currently sits at roughly $2.6 trillion). The world is more volatile, as underscored by recent Middle East escalations that have put additional pressure on existing U.S. defense inventories.