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also seeks to advance the PRC’s self-reliance in manufacturing key industrial technologies, equipment, and materials to reduce its dependence on imports, including those with dual-uses. The PRC’s MCF-influenced industrial and technology endeavors include Made in China 2025, which sets targets for the PRC to achieve greater self-sufficiency in key industrial areas such as aerospace, communications, and transportation.

The Military-Civil Coordinated Technology Innovation System. This MCF system seeks to maximize the full benefits and potential of the country’s S&T development. Consistent with the CCP leadership’s view that high technology and innovation are critical to strengthening China’s comprehensive national power, this system develops and integrates advanced technologies across civilian and military entities, projects, and initiatives—with benefits flowing in both directions. This includes using cutting-edge civilian technology for military applications or to more broadly advance military S&T as well as using military advancements to push civilian economic development. Although related to the Advanced Defense Science, Technology, and Industrial System, this system largely focuses on fusing innovations and advances in basic and applied research. Specific efforts in this MCF system include strengthening and promoting civilian and military R&D in advanced dual-use technologies and cross-pollinating military and civilian basic research. Additional efforts include promoting the sharing of scientific resources, expanding the institutions involved in defense research, and fostering greater collaboration across defense and civilian research communities. This system also seeks to foster “new-type” research institutions with mixed funding sources and lean management structures that are more dynamic, efficient, and effective than the PRC’s wholly state-owned research bodies. Examples of MCF-influenced dual-use S&T endeavors include the PRC’s Innovation Driven Development Strategy and Artificial Intelligence National Project.

The Fundamental Domain Resource Sharing System. This system includes building military requirements into the construction of civilian infrastructure from the ground up as well as leveraging China’s civilian construction and logistics capacities and capabilities for military purposes. This includes factoring military requirements and dual-use purposes into building civilian private and public transportation infrastructure such as airports, port facilities, railways, roads, and communications networks. This also extends to infrastructure projects in dual-use domains such as space and undersea as well as mobile communications networks and topographical and meteorological systems. Another element seeks to set common military and civilian standards to make infrastructure easier to use in emergencies and wartime. This aspect of MCF has arguably the greatest reach into the PRC’s local governance systems as military requirements inform infrastructure construction at the province, county, and township levels. The influence of this aspect of MCF is visible in the PRC’s major land reclamations and military construction activities in the SCS, which brought together numerous government entities, the PLA, law enforcement, construction companies, and commercial entities. It may also have important implications for the PRC’s overseas infrastructure projects and investments under BRI as the PRC seeks to establish a more robust overseas logistics and basing infrastructure to allow the PLA to project and sustain military power.


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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