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China Defense Industry
Beginning in 1978, Chinese leaders set out to transform the
defense industries, which had a huge excess capacity and were
criticized for having a "golden rice bowl" (rich but always begging
for more). To utilize this excess capacity better and to break down
the barriers between military and civilian industry, the machinebuilding ministries were reorganized, and civilians were appointed
to manage them. The civilianized, renamed ministries and their
responsibilities consisted of the Ministry of Nuclear Industry--
nuclear weapons; Ministry of Aeronautics--aircraft; Ministry of
Electronics Industry--electronics; Ministry of Ordnance Industry--
munitions and armaments; Ministry of Astronautics--ballistic
missiles and space systems; and China State Shipbuilding
Corporation--naval construction. In 1986 the Ministry of Machine
Building, which produced civilian heavy machinery and industrial
equipment, and the Ministry of Ordnance Industry were consolidated
into the new State Machine-Building Industry Commission as a way to
strengthen the unified management of the national machine-building
and weapons enterprises. In 1987 little information was available
about this new commission or its relationship to the NDSTIC or to
the State Economic Commission, whose Defense Bureau coordinated the
civilian production of the defense industry. Further changes in
defense industry structure occurred in 1986 and 1987, when inland
defense enterprises were either relocated closer to transportation
links or cities, closed down, or transferred to local civilian
control and production.
Data as of July 1987
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