- Conference and the NPC. Despite the adjustments in its narrative, China has largely continued implementing the policies behind “Made in China 2025.”
- Dual Circulation: In 2020, Xi articulated the economic policy of dual circulation, which aims for a largely self-sufficient China that could innovate, manufacture, and consume within its own economy, while still drawing on the international economy through exports, critical supply chains, and limited imports of capital. Dual circulation seeks to enable the internal markets and external markets to reinforce each other, with a focus on establishing the domestic market as the primary driver of economic growth.
Legal Framework. In recent years, the PRC has implemented new laws placing further restrictions on foreign firms while creating or strengthening the legal framework for the Party’s national security concepts and, in some cases, furthering its MCF Development Strategy (discussed in the next section):
- National Defense Law: Adopted in March 1997, the law provides legal justification to mobilize the military and civilian resources in defense of a broad range of national interests.
- National Security Law: Adopted in July 2015, the law limits foreign access to provide a broad framework for safeguarding the PRC’s security interests. It calls for review and monitoring of foreign participation in the ICT market in China on national security grounds.
- Counterterrorism Law: Adopted in December 2015, among its provisions, the law requires telecommunications operators and Internet service providers to provide information, decryption, and other technical support to public and state security organizations “conducting prevention and investigation of terrorist activities.”
- National Defense Transportation Law: Coming into effect in 2016, the National Defense Transportation Law advances the PRC MCF development strategy by laying the groundwork for the PLA Navy to mobilize civilian maritime transportation resources and facilities to support power projection missions.
- Cyber Security Law: The law, which went into effect in June 2017, promotes development of indigenous technologies and restricts sales of foreign ICT in China. The law also requires foreign companies to submit ICT for government-administered national security reviews, store data in China, and seek government approval before transferring data outside of China.
- Intelligence Law: Adopted in June 2017, the law allows authorities to monitor and investigate foreign and domestic individuals and organizations to protect national security. Specifically, it allows authorities to use or seize vehicles, communication devices, and buildings to support intelligence collection efforts.
- Cryptography Law: Adopted in October 2019 and coming into effect in 2020, this law requires entities working on cryptography to have management systems in place to ensure sufficient
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OFFICE OF THE SECRETARY OF DEFENSE
Annual Report to Congress: Military and Security Developments Involving the People's Republic of China
