January 18, 2017                                                                   Issue No. 9
In This Issue

Comments and suggestions on our content can be sent to Eric Anderson, Research Analyst, at  eanderson@ucsd.edu. 
 
 
SITC News Team
UC Institute on Global Conflict and Cooperation
GENERAL DEFENSE INDUSTRY ISSUES general
China to Set Up Asia-Pacific Security Framework Amid Growing Mistrust Among Its Neighbors | South China Morning Post

China has vowed to set up an Asia-Pacific security framework and continue building up its armed forces, citing complex security concerns in the region. In its first policy white paper on Asia-Pacific security cooperation, Beijing said that the present security framework should be upgraded.
 
Full Text: China's Policies on Asia-Pacific Security Cooperation | Global Times

China's State Council Information Office on January 11 issued a white paper on China's policies on Asia-Pacific security cooperation. 
 
Two Scientists Share China's Top Science Award | Xinhua

Physicist Zhao Zhongxian and pharmacologist Tu Youyou won China's top science award for their outstanding contributions to scientific and technological innovation. President Xi Jinping offered congratulations at an annual ceremony held to honor distinguished scientists and research achievements. Zhao is a leading scientist in superconductivity, while Tu won the 2015 Nobel Prize in Physiology or Medicine for her discovery of artemisinin as a treatment for malaria.
 
Innovation A Solid Foundation for Competitiveness | China Daily

Full text of Premier Li Keqiang's speech at the National Science and Technology Awards Conference on Monday. 
 
China's R&D Spending Estimated to Reach 2.1 Pct of GDP in 2016 | Xinhua

China's investment in research and development (R&D) is expected to reach 1.54 trillion yuan (around 223 billion U.S. dollars) in 2016, accounting for 2.1 percent of GDP, according to Science and Technology Minister Wan Gang. Last year's R&D expenditure was estimated to increase by 9 percent from 2015, with over 78 percent of the spending coming from enterprises, Wan announced at a national work conference on science and technology.
MAJOR PROJECTS, PLANS, AND PROGRAMS major
Major S&T Basic Infrastructure Construction Plan Issued | China Securities Net
重大科技基础设施建设规划印发

China issued a plan on major S&T basic infrastructure construction for the 13th Five-year period. The plan was jointly issued by the National Resource and Development Commission, Ministry of Science and Technology, Ministry of Finance, Chinese Academy of Sciences, Chinese Academy of Engineering, National Natural Science Foundation, State Administration of Science. Technology and Industry for National Defense, and the Central Military Commission Armament Development Department. The plan sets the goal of reaching advanced international levels in major S&T basic infrastructure construction and operation by 2020 in seven key areas. These include energy, life science, earth systems and environment, materials, particle physics and nuclear physics, space and astronomy, and engineering. The plan further outlines 10 construction projects.
 
NDRC Issues "National Major S&T Infrastructure Construction '13th Five Year' Plan" | BJX
发改委印发《国家重大科技基础设施建设"十三五"规划》

Full text of "National Major S&T Infrastructure Construction '13th Five Year' Plan."
AVIATION INDUSTRY AND PLA AIR FORCE air
China Developing Homegrown 'Blue Whale' Tiltrotor | AIN Online

Chinese state-owned aircraft company AVIC is developing two variants of an "ultra-fast" 270-knot tiltrotor code-named "Blue Whale," English-language newspaper China Daily reported late last month. Unlike tiltrotors such as the Bell Boeing V-22 Osprey or Leonardo AW609, the Blue Whale is a quad proprotor design. AVIC chief helicopter designer Wu Ximing said that the aircraft would be "China's equivalent of the V-22 Osprey" and used for disaster relief, supply airdrop, and search-and-rescue operations.
SPACE AND MISSILE INDUSTRIES AND PLA STRATEGIC ROCKET FORCE SpaceMissile
China Launches 1st Commercial Space Mission with New Rocket | 

China successfully sent three satellites into space in its first commercial mission using an updated version of the low-cost Kuaizhou-1A rocket, amidst the Communist giant's determined bid to expand its ambitious space program. A rocket technology company under the China Aerospace Science and Industry Corporation was responsible for the launch mission. 
 
China Plans to Launch Satellites for Global Navigation Network | China Post

China has planned to launch up to eight new generation navigation satellites into space this year, according to researchers from the BeiDou Navigation Satellite System. BeiDou chief designer Yang Hui told China News Service that they hope to start launching the BeiDou-3 satellites in the summer.
 
China Receives Imagery from High-Resolution Remote Sensing Satellites | Xinhua 

China has received images from a pair of 0.5-meter high-resolution remote sensing satellites launched in late December last year, the China Aerospace Science and Technology Corporation said recently. Tourists were seen visiting the Potala Palace in Tibet Autonomous Region in the captured images.
 
China's 2016 Space White Paper: An Appraisal | Eurasia Review

On December 27, 2016, China's State Council published a white paper on "China's Space Activities in 2016," the fourth such white paper on issues concerning China's activities in the outer space. The recent white paper indicates China's continued interest in informing the outside world about their achievements and future plans in the space arena.
 
China's CASC Inaugurates Military Rocket Innovation Centre | IHS Janes

The China Aerospace Science and Technology Corporation (CASC) has inaugurated a 'strategic rocket innovation center' to drive capability development in indigenous defense technologies, the Chinese government has said. The new CASC center will support the country's "national security objectives and the development of national defense science and technology innovation." SASTIND added that the rocket innovation center would be tasked with collaborating with other national research centers, academia, and industry in developing rocket technologies for military applications.
 
Private Chinese Firm Inks Int'l Contract For Commercial Rocket Launch | People's Daily

Landspace Technology Corporation, a private aerospace company based in Beijing, said it has secured a contract with Gomspace, a Danish company, to launch a series of satellites. It is the first time for a private Chinese company to provide satellite launching services to the international market, the company said.
 
Cargo Spacecraft Tianzhou-1 Passes Final Quality Inspection | CRI English

China's cargo spacecraft Tianzhou-1 has met the technical standards set out by experts and passed the final round of quality inspection before leaving its manufacturer. This marks a major step towards the docking of cargo spacecraft Tianzhou-1 and Tiangong-2 space experiment apparatus, which is expected to take place in April this year.
SHIPBUILDING INDUSTRY AND PLA NAVY ShipbuildingIndustry
China's New Ballistic Missile Submarine Could Change Its Prospects In Nuclear War | Popular Science

New photos of China's latest nuclear ballistic missile submarine, the "Jin" Type 094A, hints at a much-improved vessel--one that is larger, with a more pronounced "hump" rear of the sail that lets it carry 12 submarine-launched ballistic missiles.
 
China Launches New Electronic Intelligence Naval Ship | CNBC

China's navy has launched a new electronic reconnaissance ship, state media said, the latest addition to an expanding fleet and as Beijing's new assertiveness to territorial claims in the South China Sea fuels tensions. The People's Liberation Army (PLA) now operates six electronic reconnaissance vessels, the official English-language China Daily newspaper said, noting that the PLA "has never made public so many details about its intelligence collection ships."
 
China's Shipbuilding Giant Charts New Course | Hellenic Shipping News

Dalian Shipbuilding Industry Company, one of the largest shipbuilding companies in the country, is charting a new course to overcome decline in global demand. Based in Dalian in Northeast China's Liaoning province, the state-owned company is shifting its focus away from conventional shipbuilding to high-end vessels such as very-large crude and ore carriers and bulk carriers. 
 
China Urges Shipbuilders to Secure Foreign Acquisitions | IHS Janes

The Chinese government is urging its national shipbuilders--dominated by state-owned corporations and their subsidiaries--to acquire foreign companies with a view to boosting capabilities and revenues. A statement by the Ministry of Industry and Information Technology (MIIT) on January 13 said foreign acquisitions were one part of a "plan of action to accelerate the transformation and upgrading" of China's naval/commercial shipbuilders by the end of the decade. 
DEFENSE ELECTRONICS AND IT INDUSTRY DefenseElectronics
Ensuring Long-Term US Leadership in Semiconductors | President's Council of Advisors on Science and Technology

A report to the US president prepared by a working group of technology industry leaders, eminent researchers, and former policymakers. Their core finding is that only by continuing to innovate at the cutting edge will the United States be able to mitigate the threat posed by Chinese industrial policy and strengthen the US economy. The report recommends and elaborates on a three-pillar strategy to (i) push back against innovation-inhibiting Chinese industrial policy, (ii) improve the business environment for US-based semiconductor producers, and (iii) help catalyze transformative semiconductor innovation over the next decade. Delivering on this strategy will require cooperation among government, industry, and academia to be maximally effective.
 
China Chip Policy Poses Risk to US Firms, White House Says | Bloomberg

China's push to develop its domestic semiconductor technology threatens to harm USchipmakers and put America's national security at risk, the Obama administration warned in a report that called for greater scrutiny of Chinese industrial policy. China's goal to achieve a leadership position in semiconductor design and manufacturing, in part by spending $150 billion over a 10-year period, requires an effective response to maintain US competitiveness in the industry, according to the report.
 
White House Report Warns of China's Threat to Chip Industry | EE Times

Rather than respond to the threat by trying to slow China's growth in the semiconductor market, the report recommends that the United States should "win the race by running faster" through sustained innovation. The report further argues that the United States should not reflexively oppose China's ascent in the semiconductor market but should oppose Chinese actions that violate rules of open trade and investment. 
ADVANCED MANUFACTURING Nuclear
China to Promote New Materials Development | China Daily

China will step up efforts to promote development of new materials to help build the nation into a manufacturing power, Vice-Premier Ma Kai said recently. New materials is an important leading industry with fundamental significance, Ma said at a meeting of the national leading group on new materials industrial development. Quickening the development of the industry is a strategic decision taken by the central authorities with no time to be wasted, he stressed.
 
A Made-In-China Triumph: China Declares It Can Make Ball Pen Head |

Premier Li Keqiang has long said that the fact China could not make the high-grade steel and precision machinery required to make the key component of the pens--the metal ball and its casing--reflected badly on Chinese manufacturing in general, state media reported. Now, after five years of trial and error, Taiyuan Iron and Steel, one of the country's biggest stainless steelmakers, has worked out the appropriate mix of alloys for high-performance stainless steel and to extrude it into a wire feedstock just 2.3mm thick.
CIVIL-MILITARY INTEGRATION CMI
Defense Industry Enterprise Civil-Military Integration Industry Alliance Established | China Caijing
国防工业企业军民融合产业联盟成立

The Defense Industry Enterprise Civil-Military Integration Industry Alliance was formed in Beijing jointly by the National Defense Industry Enterprise Association, China Great Wall Industrial Group, and China Fortune Land Development Co., Ltd. It will provide support in defense conversion and civil sector participation in the defense industry, technological innovation and commercialization, industry promotion, financial service, and international cooperation. 
ARMS TRADE arms
China Receives First Advanced Su-35 Flankers from Russia | Defense News

China has taken delivery of the Sukhoi Su-35 "Flanker-E" fighter jet from Russia, according to Chinese state media. The Chinese military confirmed that it took delivery of four Su-35s in late December, the English-language China Daily newspaper reported without providing further details.