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Xinhua: US Defense Companies Profit from Israel-Hamas War

Chinese state news outlet Xinhua published an article about how U.S. defense companies have benefited from the Israel-Hamas War.

“As of January 30th, Israel’s military operations in the Gaza Strip have resulted in over 26,700 deaths and more than 65,000 injuries on the Palestinian side. Additionally, around 1.9 million people have been displaced, accounting for approximately 85 percent of the total population in Gaza.

“On the other side of the world, major U.S. defense contractors released outstanding financial reports for the fourth quarter and the full year of 2023. Raytheon Technologies reported sales of nearly $20 billion in the fourth quarter, with a 10 percent increase from the same period last year. Lockheed Martin also performed exceptionally well, with net sales in the fourth quarter of 2023 far exceeding market expectations, reaching $18.9 billion, an increase of $2 billion from the previous quarter. Moreover, Lockheed Martin, Raytheon, and General Dynamics all indicate record levels of unfilled orders, suggesting strong growth potential in the near future.

“According to data from the US State Department, the amount of military equipment sold by the United States overseas increased by 16 percent in the 2023 fiscal year, reaching a record $238 billion.

“Behind this stark contrast lies the blood-stained profit chain of the U.S. military-industrial complex: defense contractors funding congressional members to achieve personal political goals; lawmakers approving massive military spending to reciprocate and profit; high-ranking officials at the Department of Defense providing a steady stream of arms contracts, profiting through the revolving door between politics and business. Research data shows that over the past decade, 55% of US military spending has ultimately flowed to defense contractors. A US think tank revealed that in 2022, US taxpayers paid an average of $1,087 per person for Pentagon contractors, while the average per capita tax expenditure for U.S. basic education was only $270.”

Source: Xinhua, February 1, 2024