TWELTH FIVE-YEAR PLAN ACCELERATES CIVIL-MILITARY INTEGRATION IN CHINA'S DEFENSE INDUSTRY By L.C. Russell Hsiao

In a Fortnight

TWELTH FIVE-YEAR PLAN ACCELERATES CIVIL-MILITARY INTEGRATION IN CHINA'S DEFENSE INDUSTRY 
By L.C. Russell Hsiao

China's defense-industrial complex is emerging from the shadows of its troubled past. While weaknesses and limitations in the Chinese defense industry remain, in recent years it has produced a wide range of advanced weapon systems that has markedly enhanced the country’s military capabilities and demonstrated the prowess of the Chinese military-industrial complex. These developments reflect, in part, the considerable progress made by reforms that had been enacted in the late 1990s. As the Chinese authorities gear up to launch the 12th Five Year Plan (2011-2015), which serves as the country's blueprint for the next five years, recent statements made by a high-ranking Chinese official suggest that Beijing plans to accelerate defense industry reforms in the next Five Year Plan (FYP). These initiatives will likely boost indigenous capabilities, technology in national defense, and integration of defense industry and civil enterprises, which could substantially contribute to the long-term modernization of the country's military capabilities.