China's Commission of Science, Technology and Industry for National Defense
issued a circular on Monday granting private businesses access to the military
Private businesses will be allowed to invest in military infrastructure
construction, conduct scientific research for national defense projects and
weaponry production, participate in the regrouping of military firms and
cooperate with military firms to develop technology for military and civilian
The move aims to facilitate a better use of government outlay for national
defense and take advantage of private firms' financial and technological
resources, said the circular.
To enter the military industry, private enterprises will have to acquire
security, quality and production safety certification.
China has been gradually removing the long-standing monopoly of state capital
on its military industry since 2005 when private firms were allowed to produce
unimportant military products.