Why red tape is a bigger challenge than US for China's military-civilian fusion plan
For decades, China's talk of letting the private sector bid for defence orders had mostly been just that: talk.
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State-owned conglomerates had dominated the sector for decades, but in the middle of 2016, Beijing started to step up its military-civilian fusion strategy, publishing an official list of the sectors where private firms were being encouraged to contribute, such as swarming drone technologies.
The plan is a central pillar of China's ambition to develop a modernised military by 2035 and world-class armed forces by 2049.
Most details of the military-civilian fusion plan – which aims to accelerate the integration of military and civilian technology and military technology to boost civilian development – have not been made public.
However, Beijing has credited it with helping develop advanced equipment for the People's Liberation Army and improving training, planning and logistics.
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However, the plan also carries risks for the private sector. The strategy has become a focal point of the US-China rivalry and as a result, Washington has placed a range of sanctions on a wide range of Chinese companies accused of helping the PLA, which range from semiconductor and artificial intelligence firms to drone makers.
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