For decades, China’s talk of letting the private sector bid for defence orders had mostly been just that: talk.
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.
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.
