Arms production and sales have been solely controlled by the military system in China. But the situation is about to change now. Over 100 private enterprises entered the production and sale of military arms, according to a report by PLA Daily. Wang Baohe, from Shaanxi, is probably the first such private “arms dealer.” Wang developed a light wheeled tank which became a key piece of equipment for the Chinese engineer battalion of the U.N. peace-keeping missions it has joined. It also exported the tanks to eight countries through financial aid programs. Wang could start the business because the “Directives of PLA Arms Purchase” issued in October 2002 proposed to establish a coordinated army and civil arm production system.
Source: PLA Daily, November 20, 2008 http://www.chinamil.com.cn/site1/xwpdxw/2008-11/20/content_1555026.htm