Asia’s defense boom is rewiring the global arms supply chain

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. South Korea, too, is stepping in to fill the gap in Western inventories. 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).

In 2025, Asia’s defense spending rose 6% to approximately $573 billion, outpacing global defense growth (which currently sits at roughly $2.6 trillion). Defense spending is likely to rise thanks to new technologies, diversification into aerial and naval products, and new strategic frameworks with global partners.

The world is more volatile, as underscored by recent Middle East escalations that have put additional pressure on existing U.S. defense inventories. At the same time, rebuildi...