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By Ma Mingjie, Research Team on “Research on Promoting the Mechanism and Policy of Civil-Military Integration”, Department of Techno-Economic Research, DRC

Research Report Special Issue No. 44, 2016 (Total 1519) 2016-11-18

Abstract: The civil-military integration (CMI) finds its expression not only in technology and products, but also in the change of industrial organization. A highly specialized and orderly competition of the national defense industry system is an important guarantee for civil-military integration. In developed countries, the reform and restructuring of state-owned enterprises have attracted private capital, which improves the efficiency, vitality and stability of national defense production. However, there are still a small number of state-owned enterprises in defense production sectors, mainly engaged in special equipment production and maintenance tasks with low profit, high risk, and strong security. On the other hand, the government regulates the national defense market order through legal and administrative means in order to maintain the competitiveness, stability and security of the supplier's market, and the government also enacts special policies to maintain the production ability in special areas. An important task of the ordnance industry targeting at civil-military integration in China is to break the defense production mode of "big and all-around and small and all-around", promote the classification reform of state-owned ordnance enterprises, implement special policies to maintain production capacity in special industries, and strengthen the supervision over market competition in defense industry.

Key words: ordnance industry, civil-military integration, industrial organization, reform of state-owned enterprises