- China’s announced 2017 military budget increase continues decades of spending increases, sustaining China’s position as the second-largest military spender in the world.
- China’s published military budget omits several major categories of expenditure; actual military-related spending is higher than its official budget.
- In 2016, the CMC established the S&T Commission, a high-level defence research body, as an independent organisation under the high command. It also emphasised the importance of “military-civilian fusion,” a phrase used in part to refer to leveraging the same resource pool to develop dual-use technologies, policies, and organisations for military benefit.
- In early 2017, the PLA set up a Scientific Research Steering Committee that falls directly under the CMC, consisting of scientists and engineers experienced with cutting-edge technologies.
- In mid-July 2017, China reorganised the three top PLA academic institutes — the PLA Academy of Military Science, National Defence University, and National University of Defence Technology — as part of ongoing PLA reforms. With the new structure, the AMS will focus on scientific research related to military affairs, facilitating closer ties between military theory and S&T development. In 2016, China adopted the 13th Five Year Program (2016-2020) which, among other things, sets focus areas for research, development, and innovation. Several of these have defence implications, including aerospace engines (such as turbofan technology) and gas turbines; quantum communications and computing; innovative electronics and software; automation and robotics; special materials and applications; nanotechnology; neuroscience, neural research, and artificial intelligence; and deep space exploration and on-orbit servicing and maintenance systems.
- Other areas where China is concentrating significant R&D resources include nuclear fusion, hypersonic technology, and the deployment and “hardening” of an expanding constellation of multi-purpose satellites. China’s drive to expand military-civilian fusion and international economic activity supports these goals. A wide range of organisations work together to increase military-civilian fusion. The State Administration for Science Technology and Industry for National Defence and the PLA’s EDD work together to monitor and guide the state and military sides of China’s defence industrial apparatus, respectively.
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