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Duowei News: Xi Jinping Speeds up Military-Civilian Integration – Opportunity for Private Businesses?

Duowei, the Pro-Beijing Overseas media, reported that Xi Jinping recently hosted the second National-level Military-Civilian Integration Development Committee meeting and delivered a speech. China has been pushing for Military-Civilian integration which promotes cutting-edge technology and talent exchanges between the military and private companies in order to enhance military strength and the competitiveness of private companies. The military-civilian integration development strategy was included in the report of the 19th National Congress and written into the Constitution.

The Duowei article stated that promoting the integration of military and civilian development means that the future development of China’s national defense industry will introduce the power of private capital, which will provide new opportunities for the future development of the military industry. According to the article, there are currently about 130,000 private high-tech enterprises in China, but only about 3,000 have entered the military field. The conversion rate of China’s military scientific research results is only 15 percent, far lower than the 40 percent rate in developed countries. Among the major enterprises that have obtained research and production licenses for weapons and equipment, private enterprises account for more than two-thirds. Meanwhile technical cooperation and the flow of talent between the Chinese military, military research institutes, and private high-tech enterprises are also surging. Private companies could have the opportunity to participate in the areas of National defense information, equipment manufacturing, and the development of new materials. The article concluded that the advancement of military-civilian integration could provide a different way of thinking in the current media speculation that Beijing is allowing “the state to advance and the private sector to retreat” or Guo jin min tui (国进民退).

Source: Duowei News, October 18, 2018