Are Western Arms Dealers Facing the Craziest "Burning Money" Year?

[Global Times Comprehensive Report] "In 2026, global defense and arms-related transaction values are expected to break historical records," the Financial Times reported on the 27th, stating that this year's total value of global defense-related transactions (including mergers and acquisitions and financing) has exceeded $40 billion. Earlier this month, Lockheed Martin, the world's highest-grossing defense contractor, announced an investment of at least $100 million in British and European defense technology startups, having just announced an increase in the total funding of its defense startup investment division from $400 million to $1 billion. According to Reuters, the capital expenditure of the five largest U.S. defense contractors is expected to reach $10.08 billion this year, a nearly 38% increase from last year's $7.31 billion.

The report states that another significant direction for Western defense giants' "burning money" is venture capital for defense startups. Western defense giants, including Lockheed Martin and BAE Systems, have invested a record $4.1 billion this year to support and acquire defense startups, aiming to keep pace with the evolving dynamics of the modern battlefield. The investments by defense giants are highly focused on technology research and development. For example, Airbus's defense and space division in Germany announced earlier this month that it would lead a new dual-use technology fund, with a target size of €500 million, investing in areas such as aviation, maritime, and space. Additionally, statistics show that the total internal R&D expenditure of the 13 largest defense companies worldwide is expected to reach $11.6 billion this year, an increase of over 25% compared to five years ago. (Zhen Xiang)