The Chinese arms industry today is the world's second-largest producer of munitions. It has overtaken Russia in arms production, a country that was once a major supplier of arms to China. Currently, three of the world's top 10 arms companies are Chinese. China is also becoming a significant exporter of arms around the world. It has emerged as a supplier of weapon platforms to over 50 countries and is now the world's fifth-largest arms exporter. Its main customers are relatively poor countries in South and East Asia, Africa, and Latin America. In each case, the sales are linked to lower costs, sometimes cheap loans, and political leveraging. Around 75 percent went to Asia, with Pakistan being the destination for over 50 percent of Chinese exports. Defence exports to others in Asia, like Bangladesh, Myanmar, Sri Lanka, and Iran are also of concern to India. Close military ties with Pakistan pose a two-front war to India. In this context, the paper examines the trends in China's defence exports, with special attention to Asia. Furthermore, it analyses the implications it holds for India.