Civilian companies doing research and development for Chinese military to save money on defence budget

Chinese Military

Chinese Military

Shenzhen Economic Daily says in its report that more than 100 Shenzhen enterprises have participated in, or are involved in, production for the Chinese military.

The report says that, to facilitate private enterprises contributing to military production, Shenzhen Huachuang Science and Technology Innovation Achievements Transfer Centre held a symposium on the way for private enterprises to participate in production for the military after military structural reform.

Huang Wei, the director of the Centre, revealed to the newspaper that the number of Shenzhen enterprises that are participating in or involved in production for the military has exceeded 100.

The centre has successfully helped more than 30 science and technology enterprises to become qualified to be listed in the weapon and equipment purchase information network for the entire PLA, and recommended more than 10 private enterprises to join the PLA supplies purchase network.

Three of the projects in those enterprises have been included in the military’s thirteenth 5-year plan.

Civilian enterprises do the research and development with their own funds. If their efforts fail, they incur the losses on their own though their R&D may be useful for the military.

When they have made some achievements in their creation and innovation, Huachuang will recommend their achievements to the military, which if finds the achievements useful will purchase their products.

The enterprises recover their R&D costs from both their civilian and military sales.

As a result, the military will only incur a part of the enterprises’ R&D costs. That is why the Chinese military can benefit from scientific and technological achievements, with much less R&D costs.

Contributed by “Tiananmen’s Tremendous Achievements” – Author of “Tiananmen’s Tremendous Achievements” and “Space Era Strategy” – Also English/Chinese translation service

Source: Shenzhen Economic Daily “More than 100 Shenzhen enterprises participate in production for the military” (summary by Chan Kai Yee based on the report in Chinese)


Categories: Defence & Aerospace

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