March 21, 2017                                                                   Issue No. 13
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's Xi Pushes Advanced Technology for Military | Reuters
China's military needs to promote technological innovation as the "key" to its upgrading and modernization, President Xi Jinping told military delegates to the annual meeting of parliament. "Efforts should be made to provide greater science and technology support for the People's Liberation Army," the report paraphrased Xi as saying. "We must have a greater sense of urgency to push for science and technology innovation and advancement with greater determination and efforts."
 
Law Makers from Military Active in Submitting Motions, Proposals | China Military
At the annual session of the National People's Congress, deputies from the PLA submitted three motions and one hundred and four proposals. The motions and proposals submitted by the PLA delegation covered a wide range of areas, including the cultivation of high-tech talents, in-depth development of military-civilian integration, protection of soldiers' rights and interests, military big data construction, and national defense and military development.
 
Hearing on China's Pursuit of Next Frontier Tech: Computing, Robotics, and Biotechnology (Video) | US-China Economic and Security Review Commission
The hearing examined what steps the Chinese government has taken to support the computing, robotics, and biotechnology sectors, compared US and Chinese technological leadership in these sectors, and considered the broader implications of these policies for US economic and national security interests.
 
China-Russia Military-To-Military Relations: Moving Toward a Higher Level of Cooperation | US-China Economic and Security Review Commission
Despite areas of tension and distrust between Beijing and Moscow since normalizing relations in 1989, the two countries' militaries and defense establishments have steadily worked to minimize and overcome these differences and are now experiencing arguably their highest period of cooperation. The report describes the security implications of recent developments in Sino-Russian defense cooperation for the United States and the Asia Pacific.
 
Alliance Set Up to Promote Mass Entrepreneurship and Innovation | ECNS
China is gearing up to promote mass entrepreneurship and innovation in a bid to transform China's low-end manufacturing industries to high-tech-oriented ones. The Chinese Alliance for Mass Entrepreneurship and Innovation in Manufacturing was officially launched in Beijing, and is expected to assist in making and implementing governmental policies to boost innovation and economic development in China. Initiated by the China Center for Information Industry Development, School of Information Resource Management at Renmin University, China Aerospace Science and Industry Corp's CASICloud industrial internet platform, Haier Group, and others, the alliance will be directed by the Ministry of Industry and Information Technology.
 
China's Growing Military Industrial Power and US Interests | China US Focus
Despite China's economic slowdown, the Chinese government has plans under its "Made in China 2025" program to spend $300 billion by 2025 to become self-sufficient in critical technologies and strategic emerging industries. In early March, Premier Li Keqiang told the annual session of the National People's Congress that, "We will accelerate R&D on and commercialization of new materials, artificial intelligence, integrated circuits, bio-pharmacy, 5G mobile communications and other technologies, and develop industrial clusters in these fields." In addition, the program supports developing China's manufacturing of agricultural machinery, aircraft, electric cars, rail equipment, robots, and shipbuilding.
 
Why We Should Worry About China's Relative Backwardness in Military Technology | China US Focus
Western military analysts are obsessed with China's rapid modernization of its military forces. The introduction of new military technology, whether it is hypersonic glider warheads, new stealth fighter jets or new diesel-electric attack submarines, is a  closely followed subject. One reason for this emphasis on Chinese military technology is the deeply held fear that, in a not too distant future, the PLA, equipped with technologically more sophisticated military hardware, will be able to eclipse the United States Armed Forces as the most powerful military in the world.
SPACE AND MISSILE INDUSTRIES AND PLA STRATEGIC ROCKET FORCE SpaceMissile
China Selects 80 Proposals for Future Space Science Missions | gbtimes
China's National Space Science Center has selected 80 proposals for future innovative space science missions after assessing a broad array of submissions from across the country. The proposals cover a range of areas, including space-based astronomy, astrophysics, solar physics, planetary science, microgravity science, life sciences, and others.
 
China Said to Plan Joint Production of Ballistic Missiles with Pakistan | Times of India
The Chinese government has given the green light to its military's program to jointly produce ballistic, cruise, and anti-aircraft missiles along with Pakistan, the Global Times, which is run by the Communist Party, said in a report. The paper also cited a former officer of the People Liberation Army's Rocket Force as confirming the report.
 
BeiDou Navigates Its Way to Global Stage | China Daily
A recurring theme in the annual Government Work Report, the latest edition of which Premier Li Keqiang presented to the National People's Congress on March 5, has been promotion of high-end manufacturing and the Belt and Road Initiative, and helping Chinese companies to globalize their equipment and homegrown technologies. The BeiDou Navigation Satellite System is a perfect example of that spirit.
AVIATION INDUSTRY AND PLA AIR FORCE Aviation
China Stealth Jet Enters Service, Navy Building 'First Class' Fleet | Times of India
State television's military channel confirmed that the J-20 had now entered service, though it gave no other details. The aircraft was shown in public for the first time in November at the Zhuhai airshow and was first glimpsed by Chinese plane spotters in 2010.
 
Stealth Fighter Soon Powered By Local Engines | China Daily
A domestically developed engine will soon power the nation's latest stealth fighter jet, according to a senior scientist working for Aero Engine Corp of China. "It will not take a long time for our fifth-generation combat plane to have China-made engines," said Chen Xiangbao, vice-president of the AECC Beijing Institute of Aeronautical Materials. Chen, also a member of the Chinese Academy of Engineering, was referring to the J-20 stealth fighter.

China's J-20 Set to Receive Indigenous Engine | FlightGlobal
China is nearing the use of an indigenous power plant for the Chengdu J-20 fighter aircraft, although mass production of key engine technologies is a challenge. A report in the official China Daily newspaper quotes Chen Xiangbao, an official of Aero Engine Corporation of China, as saying that "it will not take a long time for our fifth generation combat plane to have China-made engines."
 
China's Homemade C919 Jet Poised for First Flight by End of April | Bloomberg
A single-aisle passenger jet that is being built by the Commercial Aircraft Corp. of China is set for its first test flight by the end of next month, according to Philippe Petitcolin, chief executive officer of Safran SA, an aircraft engine maker. Any problems with taxi trials may alter the schedule, Petitcolin said in an interview in Paris. The Chinese C919 aircraft will be powered by the LEAP engine, made by CFM International, an equal joint venture between Safran and General Electric.
SHIPBUILDING INDUSTRY AND PLA NAVY ShipbuildingIndustry
China Commissions 50,000-Tonne Dual-Use Semi-Submersible | IHS Jane's
China has commissioned its first heavy-lift semi-submersible to be operated as a military and civilian dual-use platform, according to the China Military Online website. Named Zhen Hua 33, the 50,000-tonne vessel is said to be "the largest civilian ship that meets [China's] defense requirements," and is reportedly capable of lifting ships of up to 10,000 tonnes, enabling emergency repairs or recoveries, in addition to the transport of ships, outsize cargo, and other floating structures.

LIMA 2017: China Proposes Light LHD | Shephard Media
The China Shipbuilding & Offshore International Company showed a large scale model of a landing helicopter dock vessel at the LIMA 2017 exhibition in Langkawi, Malaysia. Although labelled a landing platform dock, the ship model had a flat-top deck suitable for landing up to four helicopters. The model interestingly showed an embarked V-22 Osprey and MH-60 Seahawk while a spokesperson said the ship could embark ten helicopters in total.
NUCLEAR  INDUSTRY DefenseElectronics
Two State-Owned Nuclear Companies to Consolidate | Caixin
Two of China's largest state-owned nuclear companies plan to merge, joining the consolidation tide that has swept through state-owned enterprises in several sectors. China National Nuclear Corp. (CNNC) and China Nuclear Engineering & Construction Corp. (CNEC) are working on "strategic recombination plans," which then need to be approved by the central government. Two listed companies owned by CNNC and another listed by CNEC announced the planned merger over the weekend.
 
China to Start Work on Six Inland Nuclear Reactors | The Energy Collective
China is expected restart its nuclear power program in inland areas within the next four years. The statement came from Wang Yiren, vice-director of the State Administration of Science, Technology and Industry for National Defense, and vice-chairman of the China Atomic Energy Authority. He said in an interview with China National Radio that China has already decided where its inland nuclear reactors will be built.
CIVIL-MILITARY INTEGRATION CMI
Xi Jinping Attends PLA Delegation Plenary Meeting | Xinhua News
习近平出席解放军代表团全体会议
During the PLA delegation plenary meeting at the National People's Congress, Xi Jinping emphasized the need to accelerate establishment of a civil-military integration innovation system in order to provide technological support for the PLA's buildup.
 
Xi to Chinese Military: Work with Civilian Groups to Gear Up Science and Technology | Yibada
President Xi Jinping is urging the PLA to intensify research and development in the armed forces. Modernization of equipment should be a priority for the PLA to push the modernization of the army, Xi said. The president said that the modernization of the army would be done if there was a tight partnership with civilian groups engaged in science and technology fields. The army's research should also be transferred to the business sector so that production of weapons and development of intelligence can also be adapted.
 
Civil Sector Can Boost PLA's Modernization | China Daily
The military should boost integration with civilian sectors, and use scientific and technological innovation to modernize its weapons and equipment, said Xi Jinping at a meeting with the PLA delegation to the annual session of the country's top legislature. Such strategic thinking points out the direction of high technology-based modernization of the PLA, and offers scientific theoretical guidance for its development.
 
Renewable Energy and the PLA's Next Generation of Self-Sufficiency (Part 2) | China Brief
Part One of this series examined the state of renewable energy in China and the connections between civilian and military industry partners. Part Two looks in detail at the PLA's developing energy strategy both on the mainland and, increasingly, on offshore islands at the center of territorial disputes.
REGIONAL ACTORS budgets
Taiwan Plans Military Spending Surge to Counter Rising China | Bloomberg
Taiwan plans to raise military spending by about 50 percent next year as President Tsai Ing-wen attempts to offset China's growing might and support the local defense industry. Military expenditures are targeted to rise to 3 percent of gross domestic product next year, up from about 2 percent this year, Minister of National Defense Feng Shih-kuan said while presenting a report outlining Tsai's first major security review since becoming president. Taiwan plans to develop indigenous ships, airplanes, weapons and unmanned aerial vehicles, he told lawmakers in Taipei.
 
Taiwan Launches Homegrown Submarine Program to Counter China | Bloomberg
President Tsai Ing-wen said Taiwan had no choice but to build its own submarine fleet as she promoted a deal to deploy the first vessel in less than a decade. Tsai touted the contract with CSBC Corp., Taiwan, as a necessary step to improve the island's defenses. The company plans to deliver the first diesel-electric model in 2024, with deployment expected a year or two later.