China has given the green signal for private sector involvement in the research and development of weaponry and equipment.
New Delhi, Aug.7 : China has given the green signal for private sector involvement in the research and development of weaponry and equipment.
National defence authorities have also said that they are considering the introduction of a similar guideline for foreign-funded companies.
Private businesses, the guideline says, will be allowed to invest in weaponry production projects and infrastructure in collaboration with military enterprises, or by bidding. They will also be allowed to participate in the restructuring of military firms, The China Daily reported.
The guideline also says that such firms will be encouraged to develop and industrialize high technologies for both military and civilian use, and adds that private firms can apply for taxation exemptions from defence authorities.
Private enterprises must apply for permits to conduct research and development on specific weaponry listed in a special catalogue from the Commission of Science Technology and Industry for National Defence (COSTIND) and its provincial branches, according to the guideline.
It says that to apply for weapon manufacturing licenses, the private enterprises must be qualified in secrecy-keeping standards, and certified in quality and safe production conditions.
Private enterprises already in the weaponry industry should register with the authorities and report the progress of their research and development.
The defence weaponry sector, once largely a State monopoly, has been opened up to private businesses and foreign-funded ventures since 2005, allowing them to vie for licenses to develop certain categories of weaponry.
The latest guideline states businesses can get information either from the commission and its local branches or its website www.costind.gov.cn.
According to Zhang Huipeng, section chief with the department of policies and regulations under COSTIND, previously the regulation was not clear enough for either applicants or executives.
Zhang declined to disclose the number of private businesses that had been awarded licenses for weaponry research and production.
ANI