Weapons R&D gets guideline
Updated: 2007-08-07 06:49


China yesterday released a guideline for private businesses to research and develop weaponry and equipment.

The national defense authorities also said they were considering similar regulations for foreign-funded companies.

Private enterprises must apply for permits to conduct research and development on specific weaponry listed in a special catalogue from the Commission of Science Technology and Industry for National Defense (COSTIND) and its provincial branches, according to the guideline.


It says that to apply for weapon manufacturing licenses, the private enterprises must be qualified in secrecy-keeping standards, and certified in quality and safe production conditions.

Private enterprises already in the weaponry industry should register with the authorities and report the progress of their research and development.

The defense weaponry sector, once largely a State monopoly, has been opened up to private businesses and foreign-funded ventures since 2005, allowing them to vie for licenses to develop certain categories of weaponry.

But there have been no detailed implementation measures.

The latest guideline states businesses can get information either from the commission and its local branches or its website www.costind.gov.cn.

It says private businesses are allowed to invest in weaponry production projects and infrastructure in collaboration with military enterprises or by bidding, and to participate in restructuring military firms.

They are encouraged to develop and industrialize high technologies for both military and civilian use.

The guideline also says private firms can apply for taxation exemptions from defense authorities.

Before the release of the guideline, there had been only a vague regulation on private business involved in the weapons manufacturing sector.

According to Zhang Huipeng, section chief with the department of policies and regulations under COSTIND, the regulation was not clear enough for either applicants or the executives.

"The newly-published implementation method is like a roadmap for private investors," he said.

"They will understand clearly which government agency to go to and what documents to submit."

Zhang declined to disclose the number of private businesses that had been awarded licenses for weaponry research and production.

He said the commission was working on similar policies on foreign-invested businesses and was likely to come up with a separate arrangement.

This is a giant leap for Chinese military.

very good step for china...

this reminds me of some anime i used to watch

the profit margin is much higher than commercial.. anyway regardless of monetary values, I am interest to get this field to say the least..

I want make some contribution to kick some anti-China b!tch-like states asses..

Good, but this industry must be heavily regulated.

Otherwise...Ak-47's for everyone!

I think this local decentralized production of weapons is a monumental mistake....given this very damning news from AsiaTimes

http://atimes.com/atimes/China/IH08Ad01.html

keep in mind the 'elites' in Beijing are not going to let these local factories produce fighter jets...it will be small arms such the Type 95, explosives and RPG clones-Iraq should be a warning not to let weapon dumps fall into the hands of rebels.

If the water situation is really so bad then we're going to see more 'public disturbances' growing in frequency and size as its every man for himself and if the people get their hands on these weapons.........

No..No. that's not it.... China doesn't need more people to produce guns, rockets , grendade, firarms, and normal conventional weapons.. However, they want more high end sophisticated military system like advanced electronics, and radar, state of the art IT system.

this type of model is patterned after the west where private sector is more innovative, competitive, ideas are more free flowing, and able to absorb more new ideas from outside. And that's main goal of this type of decentralized model.

They need new blood ,ideas talents to bring out the best type of modern military system..


Ak47.... come on, that's so low-tech... that's Not what this is all about...

It's just an expression....power to the people...that sort of analogy...

End state weapons are not going to be produced outside state owned conglomerates (SOEs) like NORINCO anytime soon....the PRC is notoriously afraid of "foreign spies" infiltrating and stealing the designs-so if they loosen controls that's the result. The alternative is to free up the SOEs to produce end state components so the local factories can make the low tech bullets, RPGs etc.-

At least thats what the article seems to be saying. But I could be wrong.