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

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CMI, a sign of broader policy unity across political<br />

<strong>and</strong> bureaucr<strong>at</strong>ic lines. 5 Perhaps more telling of the<br />

central government commitment is its ability to marshal<br />

the n<strong>at</strong>ion’s resources for specific CMI goals. Although<br />

the picture is still mixed, positive trends are<br />

surfacing. <strong>The</strong>re is a gre<strong>at</strong> diversity of central funding<br />

projects <strong>and</strong> supporting institutions th<strong>at</strong> have varying<br />

relevance to CMI. 6 Many small to medium projects<br />

both inside <strong>and</strong> outside the defense industry are directly<br />

linked to dual-use activities. While many larger,<br />

n<strong>at</strong>ional, projects do not carry the CMI tag, the evidence<br />

suggests th<strong>at</strong> it is emerging as an integral goal.<br />

CMI is described as the “integr<strong>at</strong>ed <strong>and</strong> coordin<strong>at</strong>ed<br />

development of the defense <strong>and</strong> civilian technology<br />

economies (国防建设与经济建设协调发展).” 7<br />

<strong>The</strong>re are a number of driving forces behind CMI,<br />

some explicit in official public<strong>at</strong>ions, others implicit<br />

<strong>and</strong> suggested in nonofficial analysis. <strong>The</strong> first is economic<br />

<strong>and</strong> one clearly spelled out in the 2008 Defense<br />

White Paper <strong>and</strong> other documents. In short, China<br />

may simply not be able to afford separ<strong>at</strong>e civilian,<br />

commercial, <strong>and</strong> military research <strong>and</strong> development<br />

(R&D)/productions streams. <strong>The</strong> dem<strong>and</strong> on financial<br />

resources to meet the growing needs of military<br />

moderniz<strong>at</strong>ion—particularly in pushing the revolution<br />

in military affairs (RMA)—are becoming apparent.<br />

Moreover, broader access to the market through<br />

direct investment opportunities <strong>and</strong> injection of assets<br />

into the stock market holds huge potential for China’s<br />

defense industry to raise capital. A second driver is<br />

acquiring the capacity <strong>and</strong> talent to innov<strong>at</strong>e in order<br />

to meet the needs of a high-tech, networked <strong>PLA</strong> fighting<br />

force. As the 2008 Defense White Paper describes,<br />

with the defense research institutes <strong>and</strong> enterprises as<br />

the backbone, basic <strong>and</strong> applied research in institutes<br />

482

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