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Private firms to compete for defence bids
By Huan Xin (China Daily)
Updated: 2005-05-28 00:10 China will award permits to competent private
institutes and enterprises to research and develop weaponry and equipment,
national defence authorities announced on Friday.
The historic move comes as the country opens its defence industry to the
public once a landmark weaponry production licensing statute takes effect from
June 15.
"We plan to examine around 300 institutes and companies, including private
entities, for permit issuance in the second half of this year," Liu Dongkui, a
division director of the Commission of Science, Technology and Industry for
National Defence, told reporters in Beijing.
"A substantial breakthrough will be made in giving access of national defence
sector to non-public segments of the economy."
Such privilege used to be a monopoly of State-owned entities within the
military industry, according to commission sources.
During the past six years, the commission has issued 540 permits to core
weaponry and equipment researchers and producers, Liu said.
Under the new implementation methods, qualified institutes and firms, public
or private, may apply for permits to do research and development on specific
weaponry listed in a special catalogue, Liu said.
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