June 21, 2017                                                Issue No. 18
IN THIS ISSUE

GENERAL DEFENSE INDUSTRY
SPACE & MISSILE & PLA ROCKET FORCE
AVIATION & PLA AIR FORCE
SHIPBUILDING & PLA NAVY
DEFENSE ELECTRONICS & IT
NUCLEAR INDUSTRY
ORDINANCE INDUSTRY
ARMS TRADE
GENGENERAL DEFENSE INDUSTRY ISSUES
Xi Urges Efforts To Boost Integrated Military And Civilian Development | Xinhua

Chinese President Xi Jinping Tuesday underscored centralized and unified leadership to boost integrated military and civilian development. Xi, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, made the remarks at the first plenary meeting of the central commission for integrated military and civilian development, which he heads. Upgraded as a national strategy, integrated military and civilian development is a major achievement of China's long-term exploration of coordinated development of economic and national defense construction, Xi said. It is also a major decision concerning national development and overall security, and a major measure to deal with complicated security threats and gain national strategic advantages, Xi said.
 
Annual Report to Congress: Military and Security Developments Involving the People's Republic of China 2017 | U.S. Department of Defense

In 2016, the armed forces of the Chinese Communist Party (CCP) began implementing the sweeping organizational reforms that President Xi Jinping and other Chinese leaders unveiled in 2015. This reorganization is the latest phase in China's long-term military modernization program, which China's leaders have characterized as essential to achieving great power status and what President Xi calls the "China Dream" of national rejuvenation. The leadership portrays a strong military as critical to advancing China's interests, preventing other countries from taking steps that would damage those interests, and ensuring that China can defend itself and its sovereignty claims.
 
Australian Taxes May Help Finance Chinese Military Capability | The Australian

For several years the Chinese party-state has been pursuing a co-­ordinated program to acquire from abroad advanced military and ­industrial technology, and to do so by fair means or foul. It now emerges that Australian universities inadvertently are helping to give China the technological leadership it craves. The Australian Research Council is funnelling Australian taxpayer funds into research with applications to China's advanced weapons capacity through its linkage program. The program aims to encourage national and international research collaborations between university researchers and partners in industry or other research centres, in this case with Chinese military scientists. ARC awarded a three-year $400,000 grant to the University of Adelaide last year for a research partnership with the Beijing Institute of Aeronautical Materials, part of the Aviation Industry Corporation of China.
 
Astronaut Among Nominees For China's New Military Award | gbtimes

Chinese astronaut Jing Haipeng is among 17 candidates for a new prestigious military award approved by China's Central Military Commission. 50-year-old Jing Haipeng was commander of Shenzhou-11, which marked his third mission and doubled China's record for human spaceflight mission duration late last year. Other candidates nominated by the People's Liberation Army (PLA) for the Order of August 1 (Bayi) come from the armed police force and public security force - the date marks the founding anniversary of the PLA.
 
Strategic Planning in China's Military | The Diplomat by Elsa B. Kania

As the China's next national defense white paper should be forthcoming this summer, the Central Military Commission's Strategic Planning Office, an organization that may play a critical role in its development, merits closer consideration. Through the Strategic Planning Office and its predecessor organizations, the People's Liberation Army (PLA) has intensified its focus on strategic planning in order to support its historic reform agenda and other high-level priorities, while attempting to improve and centralize high-level coordination and planning across existing bureaucratic boundaries. Looking forward, the Strategic Planning Office will remain an integral aspect of the PLA's efforts to advance a long-term strategic agenda that includes the implementation of complex organizational reforms, military-civil integration, and defense innovation.
 
Privatizing China's Defense Industry | The Diplomat by Zi Yang

Now the world's second-largest spender on national defense, China is advancing reforms in its defense state-owned enterprises (SOEs). Xi Jinping, as commander-in-chief, has long been vocal about deepening defense industry reform, a sentiment shared by his colleagues on the Central Military Commission (CMC). In 2015, General Xu Qiliang, vice chairman of the CMC, "called for China to develop a military-industrial complex like the one in the U.S."-where the private sector and the invisible hand assume the leading role. Hungai ( 混改 ), or mixed-ownership reform (MOR), is the vehicle for reaching this goal. Why is MOR needed? How does the state intend to implement MOR? What are the obstacles facing MOR? Will MOR succeed in helping China catch-up with the U.S. defense industry? I propose that MOR will have limited success because of the structural restrictions of the Chinese defense industry.
spaceSPACE & MISSILE INDUSTRIES/PLA STRATEGIC ROCKET FORCE
How a Soviet Lander Could Help Chinese Astronauts Reach the Moon | Popular Mechanics

The Chinese space industry is buying the Soviet propulsion system designs originally intended to put humans on the Moon, well-informed sources told Popular Mechanics. As part of this new deal, a Ukrainian firm will recreate the historic engine module developed to land the first Soviet cosmonaut on the Moon ahead of the U.S. The unique engine system designed in the former Ukrainian Soviet Socialist Republic could be crucial for accelerating China's own fledgling effort to land a man on the Moon. As the most complex and challenging part of the lunar lander design, the purchase could save Chinese engineers years of development work.
 
This New Ramjet Engine Could Triple The Range Of Chinese Missiles | Popular Mechanics

China's developing a hypersonic weapon that has triple the range of existing Chinese air-to-air missiles. The premise: a ramjet engine that can turn already deadly missiles into weapons that have greater range, maneuverability, and speed. In a May 31 report, the Science and Technology Daily announced that the 4th Research Institute of the China Aerospace Science and Technology Corporation (CASC) has twice successfully tested a ramjet engine aimed to power air-to-air missiles. Song Zhongpin, a former PLA Rocket Force expert, told the Global Times that the engine was hypersonic, which suggests a speed of at least Mach 5, or 3,835 miles per hour.
 
Raytheon Ready to Meet China and Russia Hypersonic Threat | Aviation Week

As China and Russia continue to demonstrate rapid progress in development of hypersonic strike weapons, the U.S.'s largest guided-missile company says technology to counter the threat is already achievable but that fielding a system requires sustained funding and a national sense of urgency. "We are at a tipping point in hypersonics. It is the number one game changer today, and it's a huge discriminator," says Tom Bussing, vice president of Raytheon's Advanced Missile Systems. Commenting to ShowNews on the eve of the Paris Air Show, Bussing says the relatively sudden rise of hypersonic strike capability in China and Russia "is a remarkable thing that has occurred, and it has fundamentally changed the nature of warfare."
 
Liberals Waive Security Review For Chinese Takeover Of High-Tech Firm | Globe and Mail

The Trudeau government is allowing Chinese investors to buy a Vancouver high-tech firm without a formal national security review even though Canada and many of its allies use the company's patented satellite communications technology for security, public safety and defence. Hytera Communications of Shenzhen, China, is acquiring Vancouver-based Norsat International Inc., a company with military customers including the Pentagon that is also delivering a satellite communication system this year for the Canadian Coast Guard. The government decided after a preliminary security screening that further examination of the deal was not necessary.
 
Chinese Broadcasting Satellite Ends Up In Wrong Orbit After Rocket Failure | Spaceflight Now

Ground controllers could try to salvage a Chinese television broadcasting satellite deployed in a lower-than-planned orbit Sunday by a Long March 3B rocket. A brief statement from the China Aerospace Science and Technology Corp., a state-run contractor for China's space program, confirmed an anomaly in the Long March 3B rocket's third stage left the Chinasat 9A communications satellite in the wrong orbit following a liftoff from the Xichang space center.
aviationAVIATION INDUSTRY/PLA AIR FORCE
Recent Developments in the Chinese Army's Helicopter Force | Jamestown Foundation by Dennis Blasko

In November 2016, Chinese internet sources showed photos of a ceremony in the (former) 13th Group Army of the People's Liberation Army (PLA) Army accepting the 1,000th helicopter into the force (NetEase, May 23). This nice round number demonstrates the growth of the Army Aviation Corps over the past decade. Along with Special Operations Forces (SOF), Army Aviation is one of the "new-type combat forces" given priority for development. The increase in the number of Army helicopters accompanies the expansion of the force in the latest round of reforms. In roughly a month's time, half of all Army Aviation units have experienced some sort of organizational change. However, even as the numbers of helicopters rise, the size of the Army Aviation force is still small for a ground force that will probably number around a million personnel by 2020. The recent changes are an attempt to improve and expand a force that underpins a number of important capabilities from tactical mobility and special operations to logistics support.
 
New Chinese Fighters Tap Russian, U.S. Technology | AIN Online

When the People's Liberation Army Air Force (PLAAF) acquired its first tranche of Russian-made Sukhoi Su-27SK fighters in the early 1990s, long-time observers of China's industrial base asked two questions. The first was how long would it be before Chinese state-controlled aerospace industry was able to reverse-engineer and build unlicensed copies of the Su-27-as they had done with Russia's Mikoyan MiG-21 decades before. This was accomplished in slightly more than 10 years, which produced a number of "indigenous" fighter designs produced at Shenyang that are analogues of the Russian design they were copied from. The Chinese J-11B is a near copy of the Su-27, the J-15 a knockoff of the carrier-capable Su-33 and the J-16 is a duplication of the Su-30MKK models sold to the PLAAF.
shipbuildingSHIPBUILDING INDUSTRY/PLA NAVY
The Arming of China's Maritime Frontier | China Maritime Studies Institute by Ryan Martinson

China's expansion in maritime East Asia has relied heavily on non-naval elements of sea power, above all white-hulled constabulary forces. This reflects a strategic decision. Coast guard vessels operating on the basis of routine administration and backed up by a powerful military can achieve many of China's objectives without risking an armed clash, sullying China's reputation, or provoking military intervention from outside powers. Among China's many maritime agencies, two organizations particularly fit this bill: China Marine Surveillance (CMS) and China Fisheries Law Enforcement (FLE). With fleets comprising unarmed or lightly armed cutters crewed by civilian administrators, CMS and FLE could vigorously pursue China's maritime claims while largely avoiding the costs and dangers associated with classic "gunboat diplomacy."
ITDEFENSE ELECTRONICS & IT
U.S. Weighs Restricting Chinese Investment In Artificial Intelligence | Reuters

The United States appears poised to heighten scrutiny of Chinese investment in Silicon Valley to better shield sensitive technologies seen as vital to U.S. national security, current and former U.S. officials tell Reuters. Of particular concern is China's interest in fields such as artificial intelligence and machine learning, which have increasingly attracted Chinese capital in recent years. The worry is that cutting-edge technologies developed in the United States could be used by China to bolster its military capabilities and perhaps even push it ahead in strategic industries. The U.S. government is now looking to strengthen the role of the Committee on Foreign Investment in the United States (CFIUS), the inter-agency committee that reviews foreign acquisitions of U.S. companies on national security grounds.
 
Beyond CFIUS: The Strategic Challenge of China's Rise in Artificial Intelligence | Lawfare by Elsa Kania

Congress may soon consider legislation reportedly being drafted by Senator Cornyn that could heighten scrutiny of Chinese investments in artificial intelligence and other sensitive emerging technologies considered critical to U.S. national security interests. The legislation is intended to address concerns that China has circumvented the Committee on Foreign Investment in the United States (CFIUS), including through joint ventures, minority stakes, and early-stage investments in start-ups. As Secretary of Defense Jim Mattis testified last week before the Senate Armed Services Committee, CFIUS is clearly outdated, and change is warranted. That said, it is critical to recognize that the strategic challenge of China's advances in artificial intelligence necessitates a much more far-reaching response.
 
China Makes Leap Toward 'Unhackable' Quantum Network | Wall Street Journal

Chinese scientists have succeeded in sending specially linked pairs of light particles from space to Earth, an achievement experts in the field say gives China a leg up in using quantum technology to build an "unhackable" global communications network.
 
Chinese Satellite Relays A Quantum Signal Between Cities | Wired

On a clear night at the end of last year, a green dot appeared on the horizon near the Chinese-Myanmar border. "It was like a very bright green star," says physicist Chao-Yang Lu. Lu, a professor at the University of Science and Technology of China, saw it from an observing station on the outskirts of the Chinese city of Lijiang. He and his colleagues had to act fast. The green star was actually a laser, beamed from a satellite orbiting over 300 miles overhead, like a lighthouse beacon advertising the spacecraft's location. The laser dot was streaking across the sky, and would disappear beyond the horizon in just 10 minutes. So the team, made up of researchers from multiple science institutions in China, locked their telescope onto the green laser in search of the real prize within: delicate, single infrared photons produced by a special crystal on the satellite. Filtering out the green light, they latched on to their quarry, a quantum signal the likes of which has never been sent.
 
Chinese Cyber Diplomacy in a New Era of Uncertainty | Hoover Institution by Adam Segal

After initially taking a relatively defensive, reactive position on the global governance of cyberspace, China under President Xi Jinping has adopted a more activist cyber diplomacy. This foreign policy has three primary goals: limit the threat that the Internet and the flow of information may pose to domestic stability and regime legitimacy; shape cyberspace to extend Beijing's political, military, and economic influence; and counter US advantages in cyberspace while increasing China's room to maneuver. In effect, Beijing is pursuing a parallel track of managing state-to-state interactions along with efforts to generate international norms that reinforce and support domestic controls on information and data.
NUKENUCLEAR INDUSTRY
China's Nuclear Weapons R&D Attains Highest Level | Global Times

China's nuclear weapons research and development has attained the world's most advanced level although the country's nuclear weapons stockpile is small, experts said Sunday, one day after the 50th anniversary of the country's first test of a hydrogen bomb. China is technically advanced in developing new nuclear weapons, as it has full-scale facilities, nuclear weapons development institutions and nuclear reactors, said Song Zhongping, a Beijing-based military expert who had served in the People's Liberation Army (PLA)'s Second Artillery Corps (now the Rocket Force).
ORDORDINANCE INDUSTRY
China Is Building The World's Fastest Amphibious Fighting Vehicle | Popular Science

While there are many amphibious armored vehicles in the world, most of them, whether tracked or wheeled, move very slowly in the water. China's new amphibious armored car will leave the competition in its wake. The North China Institute of Vehicle Research has built a 4X4 armored fighting vehicle (AFV) that can reach a top speed of 31 miles per hour when traveling in calm waters. That speed would make the amphibious AFV the fastest amphibious military in the vehicle in the world (the cancelled Expeditionary Fighting Vehicle was capable of 29 miles per hour on water).
armsARMS TRADE
China's Wing Loong Sneaks Into Paris Air Show | Aviation Week

China's growing influence in unmanned aerial systems is being felt at the Paris Air Show with the Western debut of its Wing Loong 2 medium-altitude, long-endurance armed reconnaissance system. Making its first appearance at a Western air show in full-scale mockup form, the 9,260-lb. (4,200-kg.) Catic Wing Loong 2 is essentially a copy of the General Atomics MQ-9 Reaper that can be equipped with a wide range of Chinese-produced sensors and weaponry, with a maximum payload of 1,058 lb. The prototype Wing Loong 2 flew for the first time in February.
 
China Donates Military Equipment To Serbian Army | Xinhua

The Serbian Army on Tuesday received military equipment worth around 900,000 euros (1 million U.S. dollars) donated by China. A total of 16 rubber boats with outboard engines, five snowmobiles and 10 portable devices for detecting explosives and narcotics were donated to the Serbian army at the military barracks in Pancevo.