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The Chinese government issued a new policy on Friday to let private and foreign-funded companies in China participate the development and production of weapon equipment, which was previously under tight state control.
China’s People’s Daily reported on 28 May 2005 that the Commission of Science, Technology and Industry for National Defence (COSTIND) will be issuing licenses for weapon development and production. Under this scheme, weapon development and production will be classified into two categorises. The first category, which involves core technology and equipment, will remain under state control. The second category, which involves sub-systems and auxiliary equipment, will be open to civil private companies.
"It means if they meet certain standards, including technological level and financial strength, private and foreign- funded companies face no policy barriers to entering business in the second category," said Liu Dongkui, director of the economic co-ordination department of the COSTIND.
The Chinese Government hopes that this new policy, which will take effect on 15 June, will help to standardise the weapon development and production industry, promote moderate and orderly competition, and improve the level of the defence industry.
Liu revealed that the commission will issue around 300 weapon development and production licenses in the second half of this year. A few private businesses are among the candidates to be considered.
"But there's no fixed link between a license and production orders. Obtaining a license does not guarantee a company production orders," said Liu.
China’s private companies have been keen to enter the business of weapon development and production. In Zhuhai air shows and other exhibitions, many Chinese private companies revealed their designs such as unmanned aerial vehicle (UAV), radar, communication and electronic warfare equipment, and computer software.
29 May 05
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