China further open defense sector to private capital
China has pledged to further open its defense-related industries to private capital in a fair and safe manner.
Private investors and state-owned military enterprises will receive equal treatment in multiple areas, including licensing and taxation, according to a guideline from 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.
It also highlighted security protocols for private players involved in related industries and pledged to boost supervision in order to safeguard national security.