Military ordered to divest from hospitals, hotels
Print Edition
CHINA’S military will end so-called paid-for services within the next three years, the latest move to modernize the armed forces amid a reform and anti-corruption push.
The People’s Liberation Army announced the move in November, meaning non-core activities such as military-run hospitals and hotels open to the public will be ditched.
The military was banned from overt commercial activities in 1998, but allowed some exceptions.
According to a circular issued by the Central Military Commission, headed by President Xi Jinping, the armed forces must not sign any new contracts for paid services and allow existing contracts to expire.
Ending all paid services is “an important political task” and all members of the military must fully implement the decision, the notice said.
Services that fulfil an important social security function will be allowed to be included under a new “civil-military integration” scheme, it added, a program the government has given few details about.
According to the notice, both the regular army and the paramilitary People’s Armed Police would be covered under the ban.
The ban is a “major political task concerning the overall scope of military construction and development,” the notice said, emphasizing the need for officers and troops to adhere to the guidance of the ruling Communist Party. Xinhua news agency said the change had been introduced “to reduce corruption in the army.”
The military is reeling from an anti-corruption campaign Xi launched three years ago, which has seen dozens of officers investigated, including two former vice chairmen of the Central Military Commission, Guo Boxiong and Xu Caihou.
Xu died of cancer last year before he went on trial. Guo has yet to face a court.
The People’s Liberation Army Daily said in editorial that the military’s real focus should be on how to win wars, and that seeking profits would only distract them.
“The military’s basic function is to fight, and deviating from that core activity will bring endless disaster,” it said.
The 2.3 million-member PLA was ordered more than a decade ago to divest itself from its vast business empire that included factories and transport firms and was viewed as fueling corruption and slack discipline.
The latest reforms have reorganized parts of the command structure and will reduce troop numbers by 300,000, mainly by culling non-combat units and those using outdated equipment.
The reforms are also seeing a shift from land forces toward the navy and air force.
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