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

of higher learning and other civilian entities will be
a new vital force for independent innovation. This
means that although much of the capacity to build a
modern army resides within the defense industry, the
human resources and industrial innovation of the civilian
sector has greater potential in many fields of science
and technology, upon which a modern fighting
force will be built. A third driver is strategic in nature.
China’s ability to leap frog in high-tech military capabilities
is a factor of the nation’s overall science and
technology (S&T) system and its ability to innovate,
itself dependent on the enterprise and other institutional
R&D centers that are closely connected to the
global economy. In other words, the transfer of technology
from abroad, upon which China still heavily
relies, is far better facilitated in an environment that
is not solely dedicated to military purposes. Another
strategic consideration is the advantage of developing
certain defense technologies within a CMI framework,
such as space assets or components of the command,
control, communications, computers, intelligence, surveillance,
and reconnaissance (C4ISR) network. They
are at reduced physical risk since competitor nations
are less likely to view systems that also serve nonmilitary
interests as threats. 8
If successful, CMI will fundamentally change the
relationship between the defense and civilian economies
not only by impelling reform within the defense
industry through greater competition, oversight, and
transparency, but also by enlisting the civilian sector
to participate in construction of national defense development.
Elements of a national CMI plan to achieve
these goals are emerging. Yet, it is premised on the
fact that past reforms have been inadequate in meeting
the demands of China’s defense ambitions. If this
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