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

agement. This includes many key SOEs, land development
decisions, taxes, regional industry development
planning, etc. 104 Simply put, the central government
does not have the capacity to manage most of the concrete
economic activity. As such, the NDRC does not
administer the funds, nor do they come from NDRC
coffers, it merely approves central and local stateowned
entities such as banks, insurance agents, securities
enterprises to provide them. A major task of the
central government is to negotiate the discrepancies
between national strategic goals and local interests.
Failures with the IIFs are testament to the difficulties
in harmonizing central and local interests. As
of July, 2009, only a portion of the capital had been
raised for just two of the approved projects: the Bohai
Rim Industry Investment Fund and the Mianyang
S&T City Industry Investment Fund (both of which
have significant dual-use potential). While both Bohai
and Mianyang declared CMI activities as part of their
portfolio in order to win approval for the projects,
worth 20 billion and 6 billion yuan respectively, both
invested in other more lucrative high-profile projects
(commercial bank in Bohai or agricultural projects in
Mianyang). Bohai IIF, the project furthest along has
already been judged by the NDRC as unsuccessful. In
fact, Tianjin withdrew its proposal during the second
stage funding negotiations for the Bohai project. This
indicates a strong disagreement with NDRC directives
for the project. 105
Flexibility in CMI Models.
Another pattern that can be discerned is the adaptation
of the civilian-military integration efforts to different
parts of the national economy. This means that
different models are being applied to various regions,
505