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To meet the requirements of the development
of weaponry and equipment and the socialist market economy, China is speeding
up the development of its defense-related science, technology and industry,
and making efforts to build a new system of defense-related science, technology
and industry which is structurally optimized, organizationally efficient,
technologically advanced and properly laid out.
Main Tasks
The main responsibility of China's defense-related science, technology
and industry is to ensure the production and supply of military equipment
to meet the needs of national defense. At the same time, it undertakes
the important task of promoting the development of the national economy
and enhancing the overall national strength.
In accordance with the requirements of the RMA with Chinese characteristics,
the defense-related science, technology and industry strives to raise
its capability for weaponry and equipment research and production, and
accelerate the research and production of new- and high-tech weaponry
and equipment. It adjusts the capability composition of weaponry and equipment
research and production, giving priority to the building of capability
of new- and high-tech weaponry and equipment research and production,
and promoting the optimization and upgrading of the military industrial
structure. It strengthens and improves its technology- and defense-based
research work, and conducts explorations of frontier technology and future-oriented
research, so as to expand its technological reserve. It employs new- and
high- technologies to remold military industrial enterprises, so as to
convert its weaponry and equipment production capability from a rigid
structure to a flexible one. It enhances the development of military standards,
so as to establish a universal system of technical standards tailored
to new developments of weaponry and equipment. It carries out dynamic
adjustments of the research and production of weaponry and equipment,
so as to shorten the development cycle and reduce the cost of products.
While ensuring the fulfillment of military orders, the defense-related
science, technology and industry vigorously develops dual-purpose technologies
and actively participates in the development of the national economy.
It promotes the development and technological advances of civilian products
manufactured mainly by the military industry, such as those in the fields
of nuclear energy and applied nuclear technologies; space and aviation
technologies and ships and demolition technologies for civil use. To help
bring about industrial upgrades and technological advances of the national
economy, it supports the large-scale development of China's western region
and the remolding of the old industrial bases in northeast China, and
undertakes key construction projects and major equipment development and
technical problem tackling tasks.
The first two decades of the 21st century will be a crucial period for
the reform and adjustment of the defense-related science, technology and
industry. It will adhere to the strategic guideline of combining military
needs with civilian needs, reserving military potential in civilian capability,
vigorously developing coordination, and making independent innovations,
and persist in taking a new road of industrial development. It will establish
and improve a mechanism of competition, appraisal, supervision and motivation,
give impetus to the optimization and reorganization of resources and the
upgrading of the industrial structure, strengthen the building of the
basic capabilities of the defense-related science, technology and industry
foundations, and enhance in an all-round way the overall quality and sustainable
development capability of the defense-related science, technology and
industry.
Reform and Adjustment
China's defense-related science, technology and industry continues to
deepen its reform, optimize its industrial structure and resources allocation,
accelerate system and mechanism innovation, and establish a streamlined
and efficient research and production system.
Optimizing the industrial structure. China's defense-related science,
technology and industry aims to form an industrial layout with military
high-tech industries as the precursor, major dual-purpose industries as
the main body, and military manufacturing industries as the foundation.
It gives priority to the development of dual-purpose high-tech industries,
absorbs advanced civilian technologies from all industries and trades
for the service of national defense, and promotes the two-way transfer
of military and civilian high technologies. It supports enterprises to
develop projects and programs which are technology-intensive, produce
good economic results, consume fewer resources, cause less environmental
pollution and give full play to the advantages of human resources. It
encourages the development of burgeoning industries with information technology,
new materials, energy saving and environmental protection, life sciences,
oceanic engineering and other high technologies as the precursor, so as
to foster new economic growth.
Accelerating the reform and adjustment of military industrial enterprises.
China's defense-related science, technology and industry optimizes the
organizational structure of military industrial enterprises and encourages
competitive enterprises to carry out strategic reorganization on the basis
of market demand and their own advantages, in compliance with the principle
of specialized division of labor and large-scale production and with products
and assets as the link. Military industrial enterprises are impelled to
establish a modern enterprise system, accelerate the pace of ownership
system restructuring, establish a standard parent-subsidiary system and
a legal person management structure, and change their enterprise operational
mechanism. Full play is given to the guiding role of the state's input,
to lead and channel social funds into the development of the defense-related
science, technology and industry and carry forward the diversification
of investors. Through reforms and adjustments, the main body of the military
industry is streamlined, and a new defense-related science, technology
and industry system established, which features a small core, extensive
cooperation and military potential reserved in civilian capability.
Improving the innovation system of scientific research. Scientific research
institutions engaged in innovation activities in basic research, strategic
high-tech research and important public welfare research should expedite
the establishment of a modern scientific research institution system according
to the principle of clearly defined responsibilities and duties, scientific
evaluation, orderly opening, and standard management. Market-oriented
applied technology research and development institutions should speed
up their transformation into enterprises run on a commercial basis. The
goal is to form a defense scientific research system with defense scientific
research institutions, institutions of higher learning and key enterprises
as the main body, and to enhance the independent development capability
of the defense-related science, technology and industry.
Promoting innovation in talents-related work. A new mechanism should
be established as soon as possible for training, attracting, using, and
retaining talented people, and for accelerating their growth, so as to
create a well-structured contingent of high-caliber people in a whole
array of principles. Impetus should be given to the reform and development
of higher education for the defense-related science, technology and industry,
so as to speed up the training of high-level specialized personnel urgently
needed by the defense-related science, technology and industry. Preferential
policies should be formulated to encourage college and university graduates,
excellent students returned from overseas, and other scientific, technological
and management talents from outside the defense-related science, technology
and industry to take part in its building. In addition, the personnel
employing mechanism and the distribution system should be reformed to
raise the salaries and improve the conditions of those engaged in weaponry
and equipment research, development and production.
Development of Civil Use Industry
China has made remarkable progress in putting military industrial technology
to civil use in the past two years. In 2003, the output value of civilian
products rose by 20% as compared with that of the previous year, accounting
for more than 65% of the total output value of the defense-related science,
technology and industry.
Nuclear power production is being industrialized. China's mainland now
has nine nuclear power generating sets in operation, the total installed
capacity of which is 7.01 million KW. Another two, each with an installed
capacity of 1.06 million KW, are now under construction. In 2003, China's
nuclear power production was 43.3 billion KWH, accounting for 2.3% of
its total power production. Steady progress has been made in the construction
of auxiliary projects for nuclear energy. A nuclear fuel production system
tailored to nuclear power production has by and large taken shape, and
the production of nuclear fuel has been technologically upgraded. Great
importance is attached to the decommissioning of nuclear installations
and the treatment of radioactive waste, and great efforts are made to
enhance the awareness of environmental protection and ensure the safe
disposal of all kinds of radioactive waste. The emergency response system
for nuclear accidents has been gradually improved, and the response capability
increased.
Major breakthroughs have been made in space technologies for civil use.
Since October 1996, China has succeeded in 41 space launches. The successful
launching of the "Shenzhou V" spaceship in October 2003 sent
China's first astronaut into space. The key technological problems for
the new generation of carrier rockets have been tackled. China has successfully
launched various application satellites, including SSO (Sun Synchronous
Orbit) and GEO (Geostationary Orbit) meteorological satellites, the HY-1
oceanographic satellite and CBERS (China-Brazil Earth Resource Satellite).
The R&D of a DMEC (Disaster Monitoring and Environmental Control)
satellite constellation, a large GEO satellite platform and a new generation
of SSO meteorological satellites is going on smoothly. A lunar probe project
was officially started in January 2004, and a lunar orbiting exploration
is scheduled to be carried out by the end of 2007.
The aviation industry for civil use has made important headway in the
R&D of feeder liners and general-purpose aircraft. ARJ21, a new jet
feeder liner with 70 seats, is being independently developed, and is scheduled
for delivery in 2008. The Y-12E general-purpose aircraft for use in high-temperature
and plateau conditions and the Z-11 and Z-9 helicopters have all received
airworthiness certificates and been put on the commercial market. The
newly developed "Xiaoying 500" general-purpose plane made its
first flight in 2003. The ERJ145 jet feeder liner jointly manufactured
by China and Brazil has been delivered to users. An agreement has been
formally signed on the building of an assembly line in China for the EC120
helicopter jointly developed by China, France and Singapore. Subcontracting
business for the manufacture of foreign aircraft parts has been developing
steadily, and begun to be integrated into the large-scale circulation
system of the international aviation industry.
The shipbuilding industry for civil use has witnessed sustained rapid
growth, with an output ranking third in the world for many years. In 2003,
China's accomplished shipbuilding output, newly received orders and on-hand
orders amounted to 6.41 million DWT, 18.95 million DWT and 26.23 million
DWT respectively, accounting for a world market share of 11.8%, 18.9%
and 17.7% respectively. Products manufactured by the shipbuilding industry
for civil use have been exported to more than 90 countries and regions.
The R&D and designing capability of the shipbuilding industry for
civil use has been remarkably raised. It can now build and repair large
ships, and has made new breakthroughs in building high-tech ships.
Cooperation with Foreign Countries
China's defense-related science, technology and industry take an active
part in international exchanges and cooperation and opens wider to foreign
countries. In the field of the military industry for civil use, China
encourages military enterprises and institutions to develop both the international
and domestic markets, utilize resources from both home and abroad, participate
in the international division of labor, optimize the export product mix,
and raise the international competitiveness of their products. China also
encourages them to introduce advanced foreign technologies and management
expertise, improve the use of foreign funds, expand the strategic cooperation
with large multinational companies, and raise the technological level
of the defense-related science, technology and industry. China attaches
great importance to developing cooperation in defense technology with
friendly countries, and promotes exchanges of and cooperation in defense
technology in the international industrial community.
China's defense-related science, technology and industry takes a prudent
attitude toward the export of military products and related technologies,
and strictly complies with the policies and laws of the state on non-proliferation.
On the export of missiles and other military products, it strictly abides
by the Regulations of the PRC on the Export Control of Missiles and Related
Items and Technologies, the Regulations of the PRC on the Export Administration
of Military Products and the corresponding lists. China has invariably
adhered to three principles concerning the export of military products:
It should only serve the purpose of helping the recipient state enhance
its capability for legitimate self-defense; it must not impair peace,
security and stability of the relevant region and the world as a whole;
and it must not be used to interfere in the recipient state's internal
affairs.
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