Civil–Military Integration Efforts in China

Over the past two decades, the relationship between China’s civilian and military industrial sectors has been undergoing a major realignment brought on by the transformation of the country’s economic and technological landscape. Whereas the defense sector had been the undisputed leader of Chinese industrial technology for most of the PRC’s history, the predominantly non-state civilian economy has begun to catch up with and even surpass comparable military capabilities in many key areas since the 1990s. The Chinese leadership recognizes the enormous potential of the civilian sector for China’s military modernization program, especially in light of the often disappointing results of various technology initiatives spearheaded by the state sector, despite massive investments. Serious efforts are now under way to facilitate the entry of non-state sector firms into the military market. However, many obstacles remain, of which the entrenched interests of the defense industry stands out.