For more than a century, surface warships have been struggling to survive against mines, submarines, aircraft and, more recently, cruise missiles. Now China's rapid development of a sophisticated anti-ship ballistic missile (ASBM) raises the threat to a new level.

In aerospace and defense, as in so many other sectors, South Korea is often seen as forever trying to mimic and catch up with Japan—whether by developing combat aircraft with U.S. help, building warships increasingly comparable to Japan's or, most recently, setting out plans for space launchers.

One of the criticisms of China's policy in aerospace is that it focuses on glamor rather than profit. And it is true that the government and its manufacturers do pour public funds into high-profile projects to make complete aircraft, even though it might be more profitable to focus on the duller but serious business of making parts and supplying services to the global industry. In fact, China is doing both. While the state is chasing headlines and glory and deferring profits, private enterprise is just chasing the money.