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

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63. The Company Law of 1993 was passed by the National People’s Congress to facilitate the corporatization of SOEs. The aim was to transform SOEs into modern enterprises, allowing them to be restructured into three types of companies: wholly state-owned companies, limited liability companies, and joint stock limited companies. Also see Zhang Sunzong (张顺宗), “我国军工企业资产证券化问题探讨” (“Discussion of Defense Enterprises’ Assets being Public Listed in Stock Market”), 现代商业 (Modern Business), Issue 15, 2009. 64. Yu Xin (喻鑫) and Fan Ruipeng (樊瑞鹏), “我国军工上市公司存在的主要问题及对策” (“Problems and Measures for China’s Defense Industry Corporations in the Stock Market”), 军事经济研究 (Military Economic Research), July, 2009. 65. Some were engage in CMI R&D/production such as the Huojian Co., which produced CMI sensors used for both missiles and satellites. 66. The five areas of the defense industry (missiles/space, nuclear, ordnance, aviation, shipping) was only restructured into 10 state-owned group corporations in 1999 and the electronics industry into an 11th group corporation in 2002. 67. There were 29 IPOs prior to 1999 and 25 more since then. The statistics comes from Finance Channel of Baidu.com; and Chen Gang (陈刚) and Wang Tianyi (王天一), “国防工业整合:国家利益优先” (“Defense Industry Merger: National Interests Take First Place”), Oriental Securities (东方证券), July 7, 2009. 68. “国务院关于鼓励支持和引导个体私营等非公有制经济发展的若干意见” (“Several Opinions by the State Council on Encouraging, Supporting and Guiding Individual Private and other Nonpublic Economic Development”), available from www.china.com.cn/ chinese/PI-c/795128.htm. “Opinions” published by the State Council are more like principal directives, or prototype legislation. 69. SASAC was established in 2003 to streamline and invigorate SOE asset restructuring. 532
70. These two regulations have been termed the “two guides,” “关于非公有制经济参与国防科技工业建设的指导意见” (“Guide of Non-state Economy participates in Defense S&T Industry”), COSTIND in 2007, available from www.china.com.cn/policy/txt/2007-03/01/content_7888427.htm; “关于推进军工企业股份制改造的指导意见” (“Guide of Promoting Share-holding reform in Defense Industry”), jointly published by COSTIND, NDRC and SASAC, 2007, available from law.laweach.com/rule_12267_1.html. 71. The full name is “首次公开发行股票并上市管理办法” (“Administration of Initial Public Offering and Listing of Shares Procedures”), CSRC, May 2006, available from www.csrc.gov.cn/ n575458/n870280/n4240338/10305328.html. 72. Asset injection actually began to appear following the State Council Opinions and before the 2007 COSTIND document. See Aerospace Changfeng injection of assets in 2005, as in Figure 1. 73. After defense assets were injected into public listed companies, public profit rate of these companies increased. For example, the profit rate of China North Optical-Electric, Zhongbin Guangdian, increased 38 percent in first quarter of 2009 after defense assets were injected in 2008. Meanwhile, the average profit rate of public listed companies was around 5 percent. Public quarter report of China North Optical-Electric Company Investors of stock markets also welcomed those stocks including defense assets. For example, during 1 week of August 2009, the value of whole stock markets in Shanghai and Shenzhen decreased 4.7 percent. Meanwhile, prices of 20 defense stocks increased over 20 percent. Among these 20, the rising prices of 15 of them were driven by the anticipation of M&A or as defense asset injection. Chen Cai (陈才), “中国军工前线报告:资本运作势不可挡” (“Report on China’s Defense Frontier: An Onrush of Operating Capital”), 东方早报 (Dong Fang Daily), August 29, 2009. 74. Wu Fenglai (吴风来), (a senior official of COSTIND 国防科工委体制改革司司长), “积极稳妥推进军工企业产权制度改革” (“Promote Property Right Reform for Defense Enterprise”), 中国证券报 (China Securities Newspaper), December 25, 2007. 533
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THE PLA AT HOME AND ABROAD: ASSESSI
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CONTENTS Foreword .................
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FOREWORD It is a distinct honor to
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have been extremely satisfied with
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Also in 2009, the PLA Navy (PLAN) a
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their measures to improve the situa
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in the Asia-Pacific region, further
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tional Convention platform (Hu’s
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Second, the prosperous-nation-stron
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egy. National defense modernization
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advances, current Chinese leaders a
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Chinese leaders are well aware of t
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transformation in military affairs.
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Indeed, the United States now deplo
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through their learning from the U.S
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to gain an objective control measur
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ings on future wars depict a more p
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ever, is giving way to a more law-g
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of this PLAN fleet clearly has impl
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contribute to China’s foreign and
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military integration (CMI, [军民
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forces in both the defense and the
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For a long time, American leaders h
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14. Chinese leaders chose to use th
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26. Su Xisheng (苏希胜) et al.,
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CHAPTER 2 THE PEOPLE’S LIBERATION
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fold extensive, changing local secu
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the Association of Southeast Asian
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2 years earlier. After tracking in
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Even though the security situation
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THE PLA AND CHINA’S FOREIGN POLIC
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Vice-Chairman and Politburo member
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PLA NEAR-TERM CONCERNS With cross-S
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the entire period with: “The whol
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of the United States deployed in th
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Daily article criticized the docume
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India does not match China in econo
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tential threat to China’s most im
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pulse of the other, even as suspici
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in rebuilding the country has been
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The SCO nonetheless allows both to
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warned against Vietnam’s planned
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and South China Seas, although thes
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August 2009 meeting of the MMCA and
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ness of Japan. Moreover, the PLA kn
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wan issue and agreed to expand mili
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invasion of China is anticipated. S
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operations was clearly designed to
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mitments Beijing has already made a
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11. Major General Shou Xiaosong,
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34. Liu Yang and Guo Feng, “What
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57. James Manicom, “China’s Cla
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CHAPTER 3 DISCOURSE IN 3-D: THE PLA
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“under high technology conditions
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to command the gun (as Mao famously
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of that year and then first cited i
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arms into full play, combine offens
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. . . military deterrence, military
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the post-Mao era. However, against
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ship between construction of core m
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to spearhead efforts in this area.
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oots party entities, government ent
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merous nonwar activities and heavil
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ational capabilities. As James Q. W
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disappear, there may be voices clai
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mands of military modernization and
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ENDNOTES - CHAPTER 3 1. China’s N
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11. China’s National Defense in 2
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32. According to the 2009 Defense W
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53. Conversations with PLA research
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the field about the continued relev
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ment of most serious Party disputes
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China’s case is a lot more compli
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East China Seas to exercise maximum
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obsessed more with the high-tech
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a natural requirement for officers
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and the CMC military affairs). This
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pact on China’s relations with ma
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Party Center (党中央). 35 This s
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HU JINTAO AND CHINA’S CHANGING CI
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predictability in his interaction w
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his control over the gun at the sam
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Challenge Ahead: In Search of the N
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in Party affairs. In contrast, Li i
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Secretary General. This is a positi
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differences that are often times in
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in Hu’s hands. Lengthy debate is
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is how to pursue the next round of
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convinced people. For the sake of m
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Terrorist threats remain real, alth
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y a strategic question of whether M
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no longer routine, especially given
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5. Amos Perlmutter and William LeoG
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18. The U.S. Secretary of State con
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vilian leaders what they should not
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46. Wen’s power lies in the State
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60. You Ji, “Taiwan in the Politi
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78. Liu Yongxin, “连锁反应背
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CHAPTER 5 TOWARDS AN INTEGRATIVE C4
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pivotal year in the PLA’s quest f
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and information support capabilitie
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4. Innovation consists of making le
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increase. In developing information
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1. In 1978, a phase-one network est
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960-1,215 MHz frequency band. 42 As
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Communication problems have also ar
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联合作战). This transition from
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fundamental impediment to fostering
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such training has been done on a te
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The 2005 training goals stressed
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to “promote the healthy and order
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make overall plans for joint traini
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est, suggests that a lack of a basi
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Despite the emphasis on information
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explore opportunities. These effort
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5. Vice Admiral Arthur K. Cebrowski
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28. Ibid., p. 138. 29. Zhou Ming,
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Type of Theater Joint Command Infor
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66. Zhang Liansong and Liu Jing,
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Demonstration and Planning Meeting
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making under difficult circumstance
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The PRC only began to build a forma
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that the primary responsibility for
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As they considered the lessons lear
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in Wenchuan County in the western p
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to a number of weak points from whi
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unifying, and streamlining a pletho
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government statistics that indicate
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ights. The Menglian incident involv
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line. Similar to the Weng’an and
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ing out of internal security tasks.
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usual insignia of either the police
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XINJIANG: THE URUMQI RIOT When it r
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lessons, if any, the PLA/PAP and th
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When they did move in to reassert c
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of the military in an emergency man
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PAP would presumably draw on the ta
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2008 and in Urumqi in 2009 is indic
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ternal MOOTW has, in fact, had any
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tions on policing and internal secu
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16. “Martial Law of the People’
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Military’s Earthquake Response Le
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(PLA Daily), June 9, 2008, p. 1; We
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58. For example, on September 5, 20
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68. Yu Jianrong, Yang Huijing and X
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of the nature and seriousness of th
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91. Murray Scot Tanner, quoted in E
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103. Patel, “Chinese Disaster Rel
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CHAPTER 7 CHINESE SEA POWER IN ACTI
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tary operations capabilities.” 6
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sible solution to an unexpected but
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China’s 3 decades of involvement
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The PLAN chose some of its newest,
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Vessel Hull # Class Type Displaceme
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jing’s official news media consta
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These very cautious rules of engage
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PLAN warship(s) will maintain simil
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guarded the Chinese merchant ship Z
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EQUIPMENT, PERSONNEL, AND LOGISTICS
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Fourth Deployment: On October 30, 2
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ector of the PLAN headquarters gene
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The most dramatic innovations in sa
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tional counterparts. Combined Task
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So why is Beijing making this effor
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litical systems and ideology are at
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Zhang Zhaoyin, deputy group army co
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maintenance activities in African p
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Platform Nuclear Attack Submarines
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To be sure, proponents of SLOC defe
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sions, but it may gradually acquire
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for great power influence and rival
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crisis, as they would be harming re
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In the future, any facilities that
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carriers might rapidly become an im
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mons. In fact, the prospects for Ch
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enefit from diversion of U.S. atten
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13. Andrew S. Erickson, “Pipe Dre
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China is not similarly involved in
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40. Huang Li, p. 178. 41. Ibid., pp
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62. “Piracy Draws China Back to t
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85. “China Ready to Pay Ransom to
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106. See several articles on “Res
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121. Lt. Jennifer Cragg, “Navy Ta
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143. Phoenix TV, July 23, 2009; Jam
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第一次党代表会代表时强
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164. The author must credit Nan Li
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number of factors, including observ
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183. Senior Captain Xu Qi, PLAN,
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tive attack submarines, many more r
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CHAPTER 8 PEOPLE’S LIBERATION ARM
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Though limited in number, these exe
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Russia 6 Multiple SCO Members 4 Kyr
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The post-9/11 threat of al-Qaida an
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which “a group of international t
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off with each other just like old f
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After the air forces had attained d
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port.” 27 The live-fire portion o
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elements from two Mechanized Infant
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Observers frequently hear similar s
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Mai, Thailand. “Strike-2008” wa
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have been the “first” such even
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hensive Training Base, Guilin. Sixt
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The live demonstration phase of the
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ernment has cracked down on several
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sion-2009.” As for PAP training i
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ut only to limited degrees for the
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creasing time and distance traveled
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As such, they present outsiders an
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ilities, among other subjects. Howe
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in Roy Kamphausen and Andrew Scobel
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jun Bao Online in Chinese, December
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54. “First Sino-Russian port emer
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68. “Coordination of PRC, Russian
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85. “Full text: China’s African
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Exercise-01 APPENDIX - CHAPTER 8 CH
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CHAPTER 9 MILITARY EXCHANGES WITH C
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ization, has caused anxiety among t
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6. To independently develop militar
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defense consultations as an importa
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it appears that foreign naval and a
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communicates a positive and reassur
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Years Number of Foreign Number of F
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According to the 1998 Defense White
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Master Sergeant James A. Roy, led t
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in their ability to venture beyond
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tion.” According to the Council o
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vide training and familiarization i
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and news media to observe it up clo
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“Operational Diplomacy”: Peacek
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PLAN launched in 2007, for HA-DR ef
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sale of Chinese arms abroad and to
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The increasing scope and sophistica
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16. “Appendix III: Participation
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34. China’s National Defense in 2
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55. “Major overseas visits of PLA
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75. Ibid.; China’s National Defen
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89. “China’s Growing Role in UN
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107. Siva Govindasamy, “Dubai 09:
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• December 2007: Kenya, Kuwait, a
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ENDNOTES - APPENDIX B - CHAPTER 9 1
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Egypt, Finland (2), Greece, Hungary
Page 489 and 490: CHAPTER 10 EMERGING GRAND STRATEGY
Page 491 and 492: of higher learning and other civili
Page 493 and 494: duration, and would depend heavily
Page 495 and 496: tutions, defense companies, univers
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Page 499 and 500: creation of MIIT. This office’s p
Page 501 and 502: other countries closely and made th
Page 503 and 504: compare favorably to 80 percent in
Page 505 and 506: ernment’s initiatives to overhaul
Page 507 and 508: vestment. 77 Yet by the end of 2005
Page 509 and 510: In reality, however, numerous limit
Page 511 and 512: defense and civilian research and i
Page 513 and 514: agement. This includes many key SOE
Page 515 and 516: China Academy of Engineering Physic
Page 517 and 518: a new Defense Industry Alliance was
Page 519 and 520: absorbed and combined with in-house
Page 521 and 522: China’s defense establishment org
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Page 525 and 526: United States but failed. It then t
Page 527 and 528: vation that would result would inev
Page 529 and 530: will grow increasingly difficult an
Page 531 and 532: technology, large oil and gas field
Page 533 and 534: 15. Li Zhaoxing (李肇星), at Pre
Page 535 and 536: the National Defense Industry’s
Page 537 and 538: People’s Liberation Army”), CMC
Page 539: es Entering the Defense Industry Se
Page 543 and 544: 82. Responsibilities of CSRC in off
Page 545 and 546: percent of defense corporation is u
Page 547 and 548: 101. “Zhejiang Province Determine
Page 549 and 550: tutes, funded by the NRDC; and tech
Page 551 and 552: 130. Denis Fred Simon and Cong Cao,
Page 553 and 554: 146. Universities, for example, Tsi
Page 555 and 556: Enterprise China North Optical-Elec
Page 557 and 558: Industry Investment Fund: APPENDIX
Page 559: 10. Zhao Bo, “武器装备应用
Page 562 and 563: of China (PRC) in late 1949, milita
Page 564 and 565: This chapter seeks to provide an ov
Page 566 and 567: sional journals, such as Logistics
Page 568 and 569: USS Abraham Lincoln aircraft carrie
Page 570 and 571: will examine China’s current logi
Page 572 and 573: tribution, health service support [
Page 574 and 575: force, such as food, water and ice,
Page 576 and 577: LOGISTICS TRANSFORMATION GOALS AND
Page 578 and 579: 3. Sustainment of Units Abroad, and
Page 580 and 581: Phase Three: • Under the joint le
Page 582 and 583: zone” (战区), while joint logis
Page 584 and 585: • All supporting facilities in th
Page 586 and 587: educed. Wary of the cost of militar
Page 588 and 589: user. As a result, these innovation
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As the link between the war front a
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tion distribution centers for close
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Date Mission Location Observers Tro
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than 50 kinds of 5 major categories
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ties, 118 while enhancing China’s
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acy missions in the Gulf of Aden, a
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• Decentralization versus central
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IMPLICATIONS FOR U.S. POLICY Truth
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U.S. commitments to Taiwan. If Chin
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3. The Army has been the main force
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19. See, for example, Ngok Lee, Chi
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37. Joint core logistics capabiliti
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58. Wang Guanghui and Wang Youlin,
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78. Feng Yongmin, Zhang Lingling, a
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“A Study of the Strategy of Build
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115. Antonio Castillo, “China in
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• Three Generation (三代) refor
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ning, building, and using in a unif
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2005 • Hu Jintao asked military t
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2009 • Jan—Chinese missile-arme
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2. Hu Fuwen, “On Realizing the Pr
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30. Ren Pan and Ju Zhenhau, “’P
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Wang Jinghai (王京海) Zhao Zhanp
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Jin Xiuman (金秀满) Military Veh
Page 638 and 639:
Chen Guoshu (陈国书) Li Guangren
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Li Wanjun (荔万俊) An Introducti
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Guo Qinmao (郭钦茂) Wang Benhong
Page 645 and 646:
ABOUT THE CONTRIBUTORS DANIEL ALDER
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policy, and technology issues, has
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where she analyzed the frequency an
Page 651 and 652:
SUSAN M. PUSKA, a retired U.S. Army
Page 653 and 654:
macy, Foreign Policy and Defense St
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