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China encourages private investment in defense sector
CHINA has pledged to further open its defense-related industries to private capital in a "fair and safe manner," according to an investment guideline unveiled today.
Private investors and state-owned military enterprises will receive equal treatment in multiple areas, including licensing and taxation, said a guideline jointly created by the central government's defense industry supervisor and the General Armament Department of the People's Liberation Army.
However, the guideline will only be applied to private investors on the Chinese mainland.
Weapon development and production, the restructuring of state-owned enterprises and dual-use technologies are among the areas being encouraged for private investors.
The guideline pledged to push forward open competition in military procurement, under which public bidding will be arranged for unclassified and minor projects.
In the 2010 version of the country's catalogue of defense industries designated for social capital, no investment ratio limit was set for a list of items, including spacecraft and special materials for weapon manufacturing.
Private investors and state-owned military enterprises will receive equal treatment in multiple areas, including licensing and taxation, said a guideline jointly created by the central government's defense industry supervisor and the General Armament Department of the People's Liberation Army.
However, the guideline will only be applied to private investors on the Chinese mainland.
Weapon development and production, the restructuring of state-owned enterprises and dual-use technologies are among the areas being encouraged for private investors.
The guideline pledged to push forward open competition in military procurement, under which public bidding will be arranged for unclassified and minor projects.
In the 2010 version of the country's catalogue of defense industries designated for social capital, no investment ratio limit was set for a list of items, including spacecraft and special materials for weapon manufacturing.
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