BusinessChina homeland security and public safety market to reach $105 billion by 2020

Analysts say that according to the new report, China Homeland Security & Public Safety Market - 2012-2020, based on China’s “12th Five-Year Plan (2011-2015)” documents, and HSRC research, China is the world’s largest importer of homeland security and public safety products. This report show that:

• The last three decades of economic growth in China have bred social tensions, ethnic frictions, and domestic terror, leading the central government to invest “whatever it takes” to defend the economic-social-political fabric of the country.
• By 2014 China’s homeland security and public safety market will replace the U.S. market as the leading national homeland security and public safety market.
• According to the “12th Five-Year Plan (2011-2015),” China’s homeland security and public safety funding grew from $100 billion in 2011 to $111 billion in 2012, and will reach $159 billion by 2015. HSRC forecasts that this funding will reach $257 billion by 2020.
• China’s homeland security and public safety market (excluding the PLA homeland defense market) grew from $40 billion in 2011 to $45 billion in 2012, and will reach $58 billion by 2015. HSRC forecasts that the market will reach $105 billion by 2020.
• In 2011 foreign companies supplied $20.3 billion worth of premium homeland security and public safety products and services.
• While the U.S. embargo on military equipment and technologies export to China limits the export of defense products to this country, the U.S. government (including the State Department and the Department of Commerce) encourages the export of American homeland security and public safety products and technologies to China.
• According to the “12th Five-Year Plan (2011-2015),” China’s homeland security and public safety funding is and will continue to be larger than China’s defense funding. This claim is debated by many in the West, including the U.S. DOD and HSRC analysts, since China’s definition of the defense budget is different from NATO’s.

HSRC notes that the report includes both the homeland security and the public safety markets, since in many cases, products have homeland security and public safety dual-use applications, and present the same business opportunities.

For example, the bio-terror mitigation infrastructure is also used to contain pandemic disease outbreaks. First responders’ equipment and systems are used to respond to both manmade disasters such as terror events (homeland security), as well as natural disasters such as floods and earthquakes (public safety).