China's air force displayed a wide variety of technologically advanced weapon systems at the country's premier air show earlier this week, including the J-35A Stealth Fighter, which appears to be a fifth generation, twin engine, air dominance fighter similar to the US F-22.

China has been investing heavily in all aspects of its military to enable it to compete with the United States on a global scale, including aircraft, aircraft carriers, satellites, and ballistic missiles.

The US Secretary of the Air Force Frank Kendall was unequivocal when he said China is a threat to the United States and its allies, not in the future but currently, as leaders in China appear to be investing heavily in anticipation of a potential conflict in the Western Pacific. It will be interesting to see how the incoming US presidential administration responds to such public displays of military power, but I think it's a safe bet that defense contractors will see a robust and increasing demand for products and services in the coming years as the United States and its allies pivot their focus to address the near-peer threat posed by China.