March 7, 2017                                                                   Issue No. 12
In This Issue

General Defense Industry Issues
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 Manufacturing 2025: Putting Industrial Policy Ahead of Market Forces | European Union Chamber of Commerce in China
In China Manufacturing 2025: Putting Industrial Policy Ahead of Market Forces, the European Union Chamber of Commerce in China analyzes the potential impact of the China Manufacturing 2025 initiative on both European business and China's economy.
 
DoD-Funded School at Center of Federal Probes Over Suspected Chinese Military Ties | Fox News
Based just four miles from the Pentagon in northern Virginia is an innocuous-sounding online school for "management and technology"--which a Fox News investigation reveals has been at the center of multiple federal probes about its leadership's alleged ties to the Chinese military and whether thousands of records from U.S. service members were compromised.

SPACE AND MISSILE INDUSTRIES AND PLA STRATEGIC ROCKET FORCE SpaceMissile
China to Launch New Long March 8 Rocket by End Of 2018 | gbtimes
China is aiming to launch a new Long March 8 rocket by the end of 2018 to fill a gap in the country's carrier rocket capabilities and commercial launch prospects, a top space official has said. Li Tongyu, chief of carrier rocket development at the China Academy of Launch Vehicle Technology, told China Daily that the Long March 8 will use engines and other design aspects developed for the recently debuted Long March 5 and Long March 7 rockets.
 
China Makes Breakthrough in R&D of Heavy-Lift Launch Rocket | ECNS
China has officially started early explorations in the research and development of a heavy-lift launch vehicle. Research and development of the two kinds of high thrust engines is smoothly progressing, said Tan Yonghua, director of the Science and Technology Department, No.6 Research Institute of China Aerospace Science and Technology Corporation. Wu Yanhua, the deputy director of China National Space Administration, said China's heavy-lift launch vehicle will be named Long March 9, and its first flight is planned for around 2030.
 
Foreign Media: China Develops Hypersonic Missiles Against THAAD | China Military
Foreign media reported that China is developing hypersonic weapons with an eye to piercing the missile defense shields of Japan and its East Asian neighbors. Japan's Kyodo News February 26 quoted Canada's Kanwa Defense Review that the Rocket Force of the People's Liberation Army has recently decided on a hypersonic weapon developing program targeting the missile defense system in Japan and China's Taiwan, as well as the Terminal High Altitude Area Defense (THAAD) system to be deployed in the Republic of Korea soon.
 
China's First Woman in Space on Spacewalks, the Chinese Space Station, and Future Female Astronauts | gbtimes
Liu Yang answered questions on the sidelines of the National People's Congress ahead of International Women's Day about China's plans and training for human spaceflight, the upcoming Chinese Space Station, extravehicular activity--EVAs or 'spacewalks'--and the future for female astronauts.
 
China to Launch 6-8 Latest Navigation Satellites In 2017 | Xinhua News
China plans to launch six to eight BeiDou-3 satellites in 2017, according to a senior designer of the satellite navigation system. It is part of a plan to put 35 BeiDou satellites into space to form an orbiting satellite network and offer worldwide navigation services by 2020, said Yang Yuanxi, deputy chief designer of the BeiDou satellite navigation system.
 
Small Experimental Satellite Launched by New Chinese Rocket | Spaceflight Now
China debuted a new solid-fueled booster in an unannounced flight that put a small satellite into polar orbit, adding another rocket to the country's growing fleet of lightweight launchers. The KT-2 rocket lifted off at 2353 GMT (6:53 p.m. EST) Thursday from the Jiuquan space center, a military-run base in northwestern China's Gobi Desert, according to a report from the government-owned Xinhua news agency.

AVIATION INDUSTRY AND PLA AIR FORCE Aviation
China Exclusive: China's Domestic Wing-Loong II UAS Conducts Maiden Flight | Xinhua News
China's home-developed Wing-Loong II, the new reconnaissance and strike multi-role endurance unmanned aircraft system (UAS), successfully completed its maiden flight. With a more than 20-meter wingspan, the yellow Wing-Loong II No.01 made its appearance on the runway of a highland airfield in western China before conducting a 31-minute flight.

SHIPBUILDING INDUSTRY AND PLA NAVY ShipbuildingIndustry
CSIC May Call Timeout on Equities Injection Plan | China Daily
State-owned China Shipbuilding Industry Corporation has announced it may end a commitment to allow six other companies to inject their shares into the company as promised in 2010. 

DEFENSE ELECTRONICS AND IT INDUSTRY DefenseElectronics
Don't Buy into China's Stealth-Defeating 'Quantum Radar' Hype | War Is Boring
Could Beijing's quantum radar technology render stealth aircraft obsolete? While theoretically it would be able to detect and track stealth aircraft with impunity--if such a radar existed--it is unclear if China has truly honed such technology. The Chinese defense industry has claimed a breakthrough in mastering quantum radar technology, but Western defense industry officials said that such a system is not likely to exist outside a laboratory. Even then, the quantum radars would be difficult to build and test reliably even in a lab environment.

CIVIL-MILITARY INTEGRATION CMI
PLA Declassifies National Defense Patents for First Time | China Military
More than 3,000 Chinese national defense patents have been declassified with 2,346 released to the public, in order to promote civilian use. The first release of 2,346 patents by the National Defense Intellectual Property Office of the Equipment Development Department of China's Central Military Commission was published on the PLA Weapon Equipment Acquisition Information Network.

DEFENSE BUDGETS, CAPITAL, AND FINANCIAL MARKETS budgets
China to Raise Defense Budget by About 7 Percent | China Daily
China will increase its defense budget by around seven percent in the fiscal year of 2017, and overall military spending will account for about 1.3 percent in GDP, said Fu Ying, spokeswoman for the coming annual meeting of national legislators. Fu said these figures were decided by the Chinese government based on economic conditions and national defense requirements.
 
PLA Explains China's Military Budget Increase | China Military
The 7 percent military budget increase in 2017 will be used to support the national defense and military reform, update equipment, improve the training and living environment of grassroot-level troops and so on, said Maj. Gen. Chen Zhou, military deputy to China's National People's Congress and researcher with the Military Strategy Department of the PLA Academy of Military Science, at the press conference of China's State Council Information Office on March 4, 2017.
 
China Defends Budget Transparency After Military Outlays Omitted | Bloomberg
Finance Minister Xiao Jie affirmed China's commitment to transparency in its 19.5 trillion yuan ($2.8 trillion) budget, after excluding defense expenditures and other big items from a key fiscal report for the first time in almost four decades.
 
China's Defense Budget Transparent: Finance Minister | Xinhua News
Chinese Finance Minister Xiao Jie  shrugged off concerns over China's military transparency, saying there was no opacity in the country's defense budget. "Let me be very clear, there is no such thing as opacity in China's military spending," Xiao told a press conference on the sidelines of the country's annual parliamentary session.
 
China's Nuclear Giant Lists Its Assets | China Daily
State-owned nuclear giant China General Nuclear Power Corp, the country's largest nuclear operator, listed its applied nuclear science and technology assets on the A-share market on Monday, cashing in on the country's trillion-dollar industry, the company said.