China has issued a new policy to encourage private companies to
invest in the national defense industry, Xinhua learnt from the
Commission of Science Technology and Industry for National Defense
on Thursday.
The country will support and guide private companies producing
and researching military equipment and restructuring military
firms, according to guidelines recently issued by the
commission.
Private companies are also encouraged to develop and
industrialize high technologies for both military and civil use,
said the guidelines.
The new policy will help the country's national defense industry
make better use of funds and technologies owned by private
companies, boost its innovative capabilities and improve weaponry
research and production, said an official with the commission.
Last year, the commission issued licenses for private companies
to branch into China's weaponry industry, breaching the
long-standing state monopoly on the sector for the first time.
"As the defense sector concerns national safety, private
companies must enter the industry gradually in a safe and regulated
way," said the official, who did not give his name.
Private enterprises must enhance the awareness of secrecy,
accept government supervision and fulfill military research and
production tasks, the commission said in the guidelines.
(Xinhua News Agency March 2, 2007)