Core Viewpoint - The article discusses the acceleration of global militarization and the ongoing arms race, marking the highest level of military buildup in decades, reversing the trend of military decline observed after the Cold War [1][2]. Summary by Sections Historical Context - In the early 21st century, there were signs of a decline in global military power, with defense budgets reduced and nuclear weapons decreasing after the Cold War [1]. - However, this trend reversed decisively over the past quarter-century, particularly after the events of September 11, 2001, which led to increased defense budgets for counter-terrorism efforts [2]. Current Military Spending Trends - Global military expenditure has steadily increased since 2000, reaching the highest recorded level, with defense spending rising from approximately $1.25 trillion at the turn of the century to nearly $2.7 trillion by 2024 [2][4]. - This increase is observed across almost every region, indicating a broadening of military spending beyond just major powers to include countries facing long-term instability in the Middle East, parts of Asia, and Africa [4][5]. Future Projections - Experts indicate that the current trend of military spending is unlikely to peak soon, with a cautious outlook suggesting that military expenditure could reach $6.6 trillion by 2035, nearly five times the level at the end of the Cold War [6]. - There is a warning that without strategic adjustments towards diplomacy and multilateralism, the world may fall into a self-reinforcing cycle of militarization, exacerbating global instability [6].

Group 1 - The document emphasizes that the research material is intended solely for professional investors recognized by Huachuang Securities, and it should not be shared with non-professional investors [1][3] - It highlights that ordinary investors may misinterpret key assumptions, ratings, and target prices due to a lack of interpretative services, potentially leading to investment losses [3] - The content is derived from previously published research reports by Huachuang Securities, and any discrepancies should refer to the complete report published on the same date [3]

Core Insights - Global military expenditure is projected to reach $2.72 trillion in 2024, marking a 9.4% increase from 2023, the largest year-on-year growth since the end of the Cold War [1] Military Spending by Region - U.S. military spending is expected to grow by 5.7%, reaching $997 billion, which accounts for 66% of NATO's total military expenditure and 37% of global military spending in 2024 [1] - European military spending has increased by 17% due to the ongoing Russia-Ukraine conflict and doubts regarding U.S. commitments to NATO [1]