China buys a US defense firm for $17bn

Chinese defense giant CGN has agreed to buy an American defense company for $15bn, state news agency Xinhua reported.

The purchase of Aegis Dynamics, an engineering and technology company, is expected to close by the end of 2018, Xinhua said.

China also plans to expand its defense cooperation with the United States, Xinjiang’s official Xinhua News Agency said.

The deal follows the announcement of the sale of an Aegis combat system to the United Arab Emirates, and the sale by the US of an MQ-1 Predator unmanned aerial vehicle to the UAE.

The two countries signed an arms control treaty in April.

The Aegis system was developed in the 1990s to counter China’s strategic ballistic missile force, known as the DF-21D, and its long-range and stealthy F-22 fighter jets, which it has launched at other nations.

Aegis Dynamics has more than 1,000 employees in the US, as well as a global presence.