China to Allow Participation from Private Enterprises in its Military Equipment Sector
Published By : 04 Jun 2014 |Published By : QYRESEARCH
The defense sector is among the most critical for any country, and in the case of the world’s second largest economy China, this sector enjoys singular importance. China now plans to open up its defense sector to private players to attract more investment and technology exchange. The country will begin this process by relaxing the many access barriers that existed in its military products market.
Key measures that will be implemented by the country include: bringing down the many requirements for access to the market, reducing tedious procedures for approvals, improving the pricing criteria for defense products, and reviewing its taxation policy. This information was shared by the People\'s Liberation Army\'s General Armament Department. The department will soon launch a website dedicated to military procurement where it will regularly post information pertaining to the demand for weapons and other equipment required by its defense sector. According to the announcement, the country will strive to create and maintain fair competition in the market to encourage maximum participation from private enterprises. Key areas where China is looking for participation in the military equipment market are: research, manufacturing and production, and maintenance. It was only in 2010 that China took up the issue of addressing private investment in its defense sector. This was the time when it pledged equal treatment to both state-owned enterprises in the military sector as well as private entities operating in the same industry. This move is expected to create more investments for the defense sector in the world’s second-largest economy.