Donald Trump made a bold proposal: cut military budgets by 50% and return to the negotiating table on denuclearization. Russia’s Vladimir Putin called it a “good idea.” China? They shut it down immediately.
Beijing’s response was predictable. Chinese Foreign Ministry spokesman Lin Jian insisted that China’s defense spending is “limited” to what’s necessary for security and sovereignty. Translation: China has no interest in slowing down its military expansion. They claim they’re not in an arms race, yet their actions tell a different story.
Reality check—military budgets aren’t going down. Nations are ramping up spending like never before. The world is shifting toward full-scale geopolitical competition, and nobody trusts anybody—not even their own allies. Trump’s proposal was dead on arrival.
For investors, there’s a clear takeaway: defense contractors are in a prime position. Companies like $NOC and $LMT are set to benefit as global tensions keep driving up military spending. The arms race isn’t slowing down—it’s accelerating.
Sources:
https://www.newsweek.com/china-rejects-trump-putin-proposal-reduce-military-budget-2036366