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China Defense Industry and the Economic Role of the People's Liberation Army
The transformation of China's defense establishment into a
system capable of independently sustaining modern armed forces was
one of the major goals of the military modernization program. In
the late 1970s and 1980s, defense spending remained relatively
constant despite the shift in resources in favor of overall
economic development. Reforms focused on reorganizing the defense
research-and-development and industrial base, more closely
integrating civilian and military science and industry, and
selectively utilizing foreign technology. China sold arms for hard
currency to provide additional funds for defense industries. The
PLA continued to play its role in economic development by
participating in selective construction projects, providing dualuse training, and producing most of its food needs.
Data as of July 1987
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