Zheng Quan Shi Bao Wang·2025-11-19 00:00Core Viewpoint - The report from CITIC Securities indicates that China's military industry is evolving from a reliance on domestic demand to a new development model driven by three engines: domestic demand, foreign trade expansion, and civilian applications supporting military needs [1] Group 1: Domestic Military Demand - The first curve of domestic military demand focuses on "preparation for combat" and equipment modernization, driven by stable growth in defense budgets and the upgrading of equipment during the 14th Five-Year Plan [1] - Key growth directions include strong deterrence through high-precision and systematic unmanned low-cost technologies [1] Group 2: Military Trade Expansion - The second curve represents military trade expansion, where China's military trade share continues to rise due to cost-effectiveness, systematic combat capabilities, and geopolitical cooperation under the Belt and Road Initiative [1] - This expansion allows China to become a significant global supplier, achieving both strategic influence and economic benefits [1] Group 3: Civilian Applications of Military Technology - The third curve involves the civilian application of military technology, leading to the emergence of trillion-level new industries such as commercial aerospace, low-altitude economy, future energy, deep-sea technology, and large aircraft [1] - This trend promotes the development of new processes, materials, and devices, creating a virtuous cycle of "military technology benefiting civilian applications, which in turn supports military development" [1]