China seeks to stimulate private-sector involvement in defence

05 December 2017

China’s State Council has issued a policy to stimulate greater private-sector involvement in defence research, development, and production.

However, the new policy – published 4 December – falls short of allowing non-state-owned companies to become actively involved in sensitive military programmes or what the State Council refers to as “strategic weapons”.

According to the State Council, the rationale behind the policy is to boost defence industrial capabilities to enable China to “leapfrog” more advanced countries such as the United States. It is also intended to support the development of the Chinese military as well as the economic and social development, it said.

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