Overview

• Pakistan claims its Chinese-made J-10C jets, equipped with PL-15 missiles, downed Indian Rafale fighters, although India has not confirmed or denied the incident.
• The clash is being hailed as a milestone for China’s defence industry, showcasing the combat capabilities of its modern weaponry for the first time.
• Investor reactions saw Avic Chengdu Aircraft shares rise by 20.6% while Dassault Aviation shares dropped 6.2%, reflecting reassessments of Chinese and Western defence technologies.
• China, which accounted for 5.9% of global arms exports between 2020 and 2024, may see increased interest from developing nations if its weapons prove reliable in combat.
• Analysts caution against drawing broad conclusions from a single engagement, citing factors like radar systems and missile guidance as critical variables in future outcomes.