Chinese military phases out profit-making contract work

BEIJING - Chinese authorities have stressed that profit-making contract work conducted by the military is being phased out.

A circular issued by the general offices of the Communist Party of China Central Committee, the State Council and the Central Military Commission said the move was a key part of military reform and a crucial decision in the building of powerful, world-class armed forces.

The circular said that the gradual phasing out of profit-making services provided by the military had begun in 2016 and achieved significant progress, though there was still more work to be done.

It said all such contract work should end by the end of 2018, and that programs should be closed down if they sought profit, deviated from the military's core responsibility or provided solely civilian services.

Different strategies may be adopted to terminate existing programs deemed complex or sensitive. Some former military services can be absorbed by the military-civilian integration system. These include certain state programs suitable for the armed forces and those where the military has an advantage and is needed for state construction projects.

After service termination, evacuated land and property will be managed by the Central Military Commission.

The circular said terminating such services was the shared responsibility of the military as well as central and local authorities.

"Leading officials should take the lead, discipline be observed and a good work ethic enforced to ensure the task is accomplished in time and in full," it said.