00:00China's missile production appears to be booming, and it's all down to a web of companies little known outside the
00:06country.
00:07Bloomberg's exclusive analysis of corporate filings has mapped out for the first time the finances of the Chinese missile sector.
00:14It signals an urgent push in Beijing to ramp up capacity, with production last year appearing to grow at its
00:20fastest pace since Xi Jinping became president in 2013.
00:24Out of the nearly 400 listed firms Bloomberg examined, about 80 were directly tied to the missile supply chain, producing
00:31everything from infrared sensors to stealth coatings.
00:35Within that group, last year saw the highest percentage of companies reporting record revenues during Xi's tenure.
00:41Our analysis indicates that that was the result of a surge in new orders to expand China's missile program.
00:48By contrast, China's 300 largest listed companies saw an overall drop in revenue last year.
00:54And our data crunching suggests a bigger shift in China.
00:58The increasing role of civilian companies in expanding the country's military prowess.
01:04So what does that mean for China's capabilities?
01:06Well, some of these firms are producing components that power both cruise and ballistic missiles, key weapons that extend China's
01:14military reach across the Indo-Pacific.
01:16The build-up indicates that China is flush with missiles, just as U.S. stockpiles have been depleted by President
01:23Donald Trump's war in Iran, raising concerns for Taiwan and American allies in the region.
01:29China maintains its arsenal is for self-defense, but as global tensions rise, its expanding missile capabilities could play a
01:36pivotal role in future conflicts, particularly involving the Salford Island of Taiwan.
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