China's national defense industry will be open for the first
time to non-public companies this year as a new trial method is put
to effect on Wednesday, the International Herald Leader
reported Monday.
Currently, many private companies are striving to seek a license
to branch into the production, research and development of China's
weaponry industry, said the Beijing-based newspaper.
According to an official method issued by the Commission of
Science Technology and Industry for National Defense, which is due
to become valid on June 15, a total of 300 licenses will be issued
in the latter half of this year.
In that case, the state capital's long-standing monopoly on
China's national defense industry will breach for the first time,
and non-public companies will therefore gain unprecedented access
to the special industrial sector.
Liu Dongkui, an official with the commission, said that a total
of 540 companies, all state-owned, have been granted such licenses
in the past six years since 1999.
"Our next step is to target qualified non-public companies.
About 60 to 70 private firms are now on the top of the candidates'
list," he said.
Classifying the licenses into two categories, with the first
kind qualified for "core military production" and the second kind
for manufacturing "subordinate products" like high-strength armor
plate and electric instrument, Liu acknowledged that non-public
companies would be only allowed to pitch in subordinate
production.
The licenses for "core military production" are still reserved
for state-owned military factories. Besides, the total number of
such licenses will be strictly controlled.
In contrast, no ceiling will be imposed on the licenses for
"subordinate production." All private companies, foreign firms and
joint ventures are welcomed to apply, he said.
National defense experts are said to have applauded the measure
because "it would facilitate a better use of the government's
national defense outlay and force existing military factories to be
more competitive as the market competition will become increasingly
fiercer with the arrival of new comers," said the newspaper.
(Xinhua News Agency June 14, 2005)