University of California Institute on Global Conflict and Cooperation

Critical reforms are taking place in China’s defense industry. New long-term plans and institutional arrangements, an emphasis on turnkey technologies and civil-military integration (CMI), research institute system reforms, and capital market access will help the Chinese defense industry move to higher-endinnovation and away from reliance on foreign technology transfers. Themain implication for the United States is an increased ability for China to forge an independent development path that will be more resistant to US competitive strategies. The pace and intensity of Chinese defense industry development represents a long-term challenge to US superiority in military technology.