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The PLA at Home and Abroad - Strategic Studies Institute - U.S. Army

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CHAPTER 10<br />

EMERGING GRAND STRATEGY FOR<br />

CHINA’S DEFENSE INDUSTRY REFORM<br />

Eric Hagt<br />

THE DECISION TO PURSUE CMI<br />

China has embarked on yet another round of transform<strong>at</strong>ive<br />

change to its defense industrial complex.<br />

<strong>The</strong> Chinese leadership’s str<strong>at</strong>egic sights are set on<br />

civil-military integr<strong>at</strong>ion (CMI [军民一体化]) as the<br />

centerpiece of future defense reform. 1 <strong>The</strong> decision to<br />

pursue CMI is the result of a decade of intensive study<br />

of intern<strong>at</strong>ional trends <strong>and</strong> a comprehensive self-assessment<br />

th<strong>at</strong> past efforts to retool the industry have<br />

not met the needs of the Chinese People’s Liber<strong>at</strong>ion<br />

<strong>Army</strong> (<strong>PLA</strong>) in preparing for future warfare. 2<br />

<strong>The</strong> government’s long-term commitment to CMI<br />

appears firm. Since the 3rd Plenum of the Chinese<br />

Communist Party (CCP)’s 16th Party Congress in 2003<br />

when defense industry transform<strong>at</strong>ion <strong>and</strong> CMI was<br />

included as a str<strong>at</strong>egic goal for China’s n<strong>at</strong>ional economic<br />

development, all major political <strong>and</strong> defense<br />

documents have since reiter<strong>at</strong>ed these goals. 3 Also<br />

importantly, CMI is deeply embedded in China’s Medium<br />

<strong>and</strong> Long term N<strong>at</strong>ional Plan for Science <strong>and</strong><br />

Technology Development 2006-2020. <strong>The</strong> plan not<br />

only stresses CMI as a primary goal, but approxim<strong>at</strong>ely<br />

half of the 16 items prioritized for development in<br />

this document have clear civil-military dual-use fe<strong>at</strong>ures.<br />

4 Officials in various ministries have also taken<br />

pains to reiter<strong>at</strong>e the government’s commitment to<br />

481

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