Chinese military industry entering golden age

Source:China Daily Editor:Dong Zhaohui 2017-11-02

By Chen Meiling

The next five to 10 years will become a golden age for the development of the Chinese military industry, backed by more financial and technical resources from civil capital, an industrial insider said Tuesday.

The military industry needs many assets, technologies and human resources, with high risk and a long growth period, which suggests great potential for capital to play a role, said Liu Na, co-founder of the prominent military-focused investment institute Beijing Dalin Investment Management, at a recent forum held in Beijing.

Dalin Investment helped several private enterprises, including Acoinfo, a real-time operating system provider, and Jinguanghong, an intelligent machine producer, to participate in military projects by attracting investment and establishing links with market resources, according to the company.

"Civil-military integration can bring profits for both military groups and civil companies," said Xu Genchu, former vice-president of the PLA Academy of Military Science.

Acoinfo, once a startup with about 10 technicians, has become a high-tech company with completely independent intellectual property rights and clients among the top 10 military group members, the company said.

Participation in military projects can also promote the blending and upgrading of the industrial chain, it said.

Industrial statistics showed about 80 to 90 percent of high technologies concerning information construction in countries like the United States and Germany came from civil companies.

There's much room for civil companies to explore in defense fields, Xu said.

As one of the first investors focusing on civil-military integration in China, Dalin Investment has raised buyout funds up to 1.7 billion yuan ($258 million) to be invested in the fields of informatization, new materials and advanced equipment, according to the company.

 

 

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