Military economy to boom as govt targets integrated development

An unmanned patrol boat is on display at the Second China Military and Civilian Integration Expo in Beijing on Monday. [Photo by Zhao Lei/chinadaily.com.cn]

China is eyeing more efficient and coordinated integration of military and civilian development, a move which analysts say would boost multiple industries to the tune of trillion-yuan in years to come.

A new document, which was released on Thursday, said the integrated development should rely on the roles of the market, reform and innovation, while boosting the "coordinated, balanced and compatible" development of both economic and defense construction.

The guideline called for building an advanced defense science, technology and industry system. Defense enterprises will be regrouped, and more non-governmental investment will be encouraged in defense industries.

Cooperation between military and civilian science and technology institutions will be strengthened, according to the guideline, which also called for cooperation between military and civilian education institutions.

"The military sector, before anyone else, creates top-notch technologies and game-changing innovations," Lu Guangshan, chairman of AVIC Avionics Systems Company Ltd, was quoted by the Shanghai Securities News as saying.

"For example, the currently red-hot virtual reality technologies were actually first adopted in the helmet sight system of fighter planes," he said.

The military-civilian integration could become a new driver of economic growth, boosting multiple industries from aviation and cyber-security to medical health. Each industry is expected to develop a market of trillions of yuan, he told the newspaper.

"With technological edges, we have made forays into industries including virtual reality, robots, drones, new materials, wearable, medical health," he said.

An insurance system for servicemen will be built, and a sharing system for military and civilian health care resources will be improved. The military's housing system will also be reformed, according to the guideline.

Calling for strong capital input and policy support, the circular encouraged the military and civilian sectors to first collaborate on a series of major projects.

"(Authorities) should build several innovation demonstration zones to explore new and sustainable paths and patterns that can be popularized and replicated," it said.