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   Preface
 I. Current Situation of Energy Development
 II. Strategy and Goals of Energy Development
 III. All-round Promotion of Energy Conservation
 IV. Improving the Energy Supply Capacity
 V. Accelerating the Progress of Energy Technologies
 VI. Coordinating Energy and Environment Development
 VII. Deepening Energy System Reform
 VIII. Strengthening International Cooperation in the Field of Energy
 Conclusion
 Preface
 I. An Inevitable Choice in China's Social Development
 II. A Basic Political System for China
 III. Major Manifestations of Socialist Democracy
 IV. Political Consultation in the Multi-party Cooperation System
 V. Multi-party Cooperation System and Building of State Power
 VI. Multi-party Cooperation System and the Chinese People's Political Consultative Conference
 VII. Multi-party Cooperation System and Modernization
 Conclusion
 Appendix. A Brief Introduction to China's Democratic Parties and Personages Without Party Affiliation
 Appendix: Basic Facts About the 155 Ethnic Autonomous Areas
 Foreword
 Chapter I The Security Situation
 Chapter II National Defense Policy
 Chapter III Revolution in Military Affairs with Chinese Characteristics
 Chapter IV Defense Expenditure and Defense Assets
 Chapter V The Military Service System
 Chapter VI National Defense Mobilization and Reserve Force Building
 Chapter VII Science, Technology and Industry for National Defense
 Chapter VIII The Armed Forces and the People
 Chapter IX International Security Cooperation
 Chapter X Arms Control, Disarmament and Non-Proliferation
 Appendix I Members of the CMC of the CPC
 Appendix II Leaders of the Four Headquarters/Departments of the PLA
 Appendix III Major Military Exchanges with Other Countries (2003-2004)
 Appendix IV Participation in Security Consultations (2003-2004)
 Appendix V Joint Exercises with Foreign Armed Forces (2003-2004)
 Appendix VI Participation in UN Peacekeeping Operations
 Appendix VII Major Military Regulations Promulgated Since 2003
 Foreword
 I. The Present Situation of Mineral Resources and Their Exploration and Exploitation
 II. Targets and Principles for Mineral Resources Protection and Rational Utilization
 III. Increasing the Domestic Capability of Mineral Resources Supply
 IV. Widening the Opening of, and Cooperation in, Mineral Resources Exploration and Exploitation
 V. Achieving the Coordinated Development of Mineral Resources Exploitation and Environmental Protection
 VI. Improving the Management of Mineral Resources
 Foreword
 I. The Status Quo of the "Three Direct Links" Across the Straits and the Problems to Be Solved
 II. Realization of the "Three Direct Links"
 III. The Mainland's Basic Stand and Policies on the "Three Direct Links"
 IV. Explanations on Some Questions Related to the "Three Direct Links"
 Conclusion
 Foreword
 I. China's Basic Stand on Non-Proliferation
 II. Actively Participating in International Non-Proliferation Efforts
 III. Non-Proliferation Export Control System
 IV. Concrete Measures for Non-Proliferation Export Control
 V. Strictly Implementing the Laws and Regulations on Non-Proliferation Export Control
 Conclusion
 Foreword
 Part One: Status and Role of the European Union
 Part Two: China's EU Policy
 Part Three: Strengthen China-EU Cooperation in All Fields
 I. The Political Aspect
 II. The Economic Aspect
 III. The Education, Science-Technology, Culture, Health and other Aspects
 IV. The Social, Judicial and Administrative Aspects
 V. The Military Aspect
 Foreword
 I. The Security Situation
 II. National Defense Policy
 III. The Armed Forces
 IV. National Defense Building
 V. Armed Forces Building
 VI. International Security Cooperation
 VII. Arms Control and Disarmament
 Appendix I Main Military Laws and Regulations Issued Since 2000
 Appendix II Major Military Exchanges with Other Countries in 2001-2002
 Appendix III Participation in Security Consultations in 2001-2002
 Appendix IV Participation in UN Peace-keeping Operations
 Appendix V Chinese Armed Forces’ Participation Since 2000 in Assisting Japan in Handling the Chemical Weapons Abandoned by Japan in China
 Introduction
 I. Aims and Principles
 II. Present Situation
 III. Future Development
 IV. International Cooperation
 Foreword
 I. The Security Situation
 II. National Defense Policy
 III. National Defense Construction
 IV. Armed Forces Building
 V. International Security Cooperation
 VI. Arms Control and Disarmament
 Foreword
 I. The International Security Situation
 II. National Defense Policy
 III. National Defense Construction
 IV. International Security Cooperation
 V. Arms Control and Disarmament
 Foreword
 I. Sustainable Marine Development Strategy
 II. Rational Development and Utilization of Marine Resources
 III. The Protection and Preservationof the Marine Environment
 IV. The Development of Oceanographic Science, Technology and Education
 V. The Implementation of ComprehensiveMarine Management
 VI. International Cooperation in Maritime Affairs
 I.Soaring Trade Between Chinaand the United States
 II.Statistical Difference in Sino-USTrade Balance
 III.Statistics Based on Rules of Origin CannotsAccurately Reflect the Situation of Sino-US Trade Balance
 IV.US Export Control Against China-- a Major Obstacle for Bilateral Trade Balance
 V.Sino-US Economic and Trade Co-operationShows Vast Vistas
 Foreword
 I. Promoting Peace and Developmentfor All Mankind
  II. Military Personnel Reducedby One Million
 III. Maintaining a Low Level ofDefence Spending
 IV. Peaceful Uses for MilitaryIndustrial Technologies
 V. Strict Control over the Transferof Sensitive Materials andMilitary Equipment
 VI. Actively Promoting International Arms Control and Disarmament
 Concluding Remarks
 III. Judicial Guarantee for Human Rights
 Foreword
 Foreword
 III. Judicial Guarantee for Human Rights
 I. People's Rights to Subsistence and Development
 Foreword
 Foreword
 Foreword
 II. Civil and Political Rights
 Foreword
 Concluding Remarks
 Foreword
 .Concluding Remarks
 Foreword
 Foreword
 Conclusion
 Foreword
 Preface
 Foreword
 Foreword
 Preface
 IV. Economic, Social and Cultural Rights
 II. Civil and Political Rights
 Foreword
 Foreword
 Conclusion
 Foreword
 Foreword
 Foreword
 VI. Equal Rights and Special Protection for Ethnic Minorities
 III. Judicial Guarantee for Human Rights
 Foreword
 Preface
 Foreword
 Conclusion
 Foreword
 V. Equal Rights and Special Protection for Ethnic Minorities
 Foreword
 Conclusion
 Preface
 Foreword
 Conclusion
 Foreword
 Foreword
 Conclusion
 Foreword
 Foreword
 Conclusion
 Foreword
 Conclusion
 Preface
 Conclusion
 Conclusion
 Foreword
 Foreword
 Preface
 Preface
 Foreword
 X. Active Participation in International Human Rights Activities
 IX. Guarantee of Human Rights For the Disabled
 VIII. Family Planning and Protection Of Human Rights
 VII. Guarantee of the Rights of The Minority Nationality
 VI. Citizens Enjoy Freedom Of Religious Belief
 V. Guarantee of the Right to Work
 IV. Guarantee of Human Rights In China's Judicial Work
 III. Citizens Enjoy Economic, Cultural and Social Rights
 II. The Chinese People Have Gained Extensive Political Rights
 I. The Right to Subsistence--The Foremost Human Right The Chinese People Long Fight for
 VIII. Employment, Resettlement, Education and Protection for Convicts Who Have Served Their Term and Been Released
 VII. Carrying out the Punishment of Criminals
 VI. Humane Handling of Prisoners in Accordance with the Law
 V. Changing Criminals through Methods of Persuasion
 IV. Legal, Moral, Cultural and Technical Education of Criminals
 III. Reform of Criminals through Labour
 II. Guaranteeing the Rights of Criminals
 I. China's Basic Principles of Criminal Reform
 Part Two XII. Special State Aid for Tibet's Development
 Part Two XI. Protection of Living Environment
 Part Two X. People's Health and Demographic Growth
 Part Two IX. Development of Education and Culture
 Part Two VIII. Freedom of Religious Belief
 Part Two VII. Economic Development and Improvement of Living Standards
 Part Two VI. The People Enjoy Political Rights
 Part Two V. The People Gain Personal Freedom
 Part Two IV. Feudal Serfdom in Old Tibet
 Part One III. The Dalai Clique's Separatist Activities and the Central Government's Policy
 Part One II. Origins of So-Called 'Tibetan Independence'
 Part One I. Ownership of Tibet
 V. Several Questions Involving Taiwan in International Relations
 IV. Relations Across Taiwan Straits: Evolution and Stumbling Blocks
 III. The Chinese Government's Basic Position Regarding Settlement of the Taiwan Question
 II. Origin of the Taiwan Question
 I. Taiwan -- An Inalienable Part of China
 Chapter VIII Active Participation in International Women's Activities
 Chapter VII Organizational Guarantees of the Rights and Interests of Chinese Women
 Chapter VI Equal Status in Marriage and Family Life
 Chapter V Full Advance in Society
 Chapter IV Extensive Participation in Administration Of State and Social Affairs
 Chapter III Equal Rights and Important Role In Economic Sphere
 Chapter II Equal Legal Status
 Chapter I Historic Liberation of Chinese Women
 III. China Has a Complete Law Enforcement System for Intellectual Property Protection
 II. China Has a High-Grade Legal System for Intellectual Property Protection
 I. China's Basic Position Regarding the Protection of Intellectual Property Rights
 VII. The Correct Choice for Human Rights Protection
 VI. Optimization Through Reform and Development
 V. Satisfying the Reproductive Health Needs of People of Child-bearing Age
 IV. Bringing the People to a Common Level of Understanding
 III. Combination of State Guidance with Voluntary Participation by the Masses
 II. A Social Undertaking That Benefits the People
 I. A Strategic Policy That Suits National Conditions
 X. Working Hard to Promote the Healthy Development of International Huma Rights Activities
 IX. Developing the Study of Human Rights and Popularizing the Knowledge of Human Rights
 VIII. Guarantee of the Rights and Interests of the Disabled
 VII. Guarantee of Rights and Interests of Ethnic Minorities
 VI. Protecting the Legitimate Rights and Interests of Women and Children
 V. The Right of Citizens to Education
 IV. The Right to Work of Citizens and the Rights and Interests of Worker.
 III. Judicial Work in Safeguarding Human Rights
 I. People's Right to Existence and Development
 V. China's Welfare Homes for Children
 IV. Protection of Disabled Children
 III. Education for Children
 II. Children's Health and Care
 I. Guarantee of Children's Rights and Interests
 VII. Taking Vigorous Action to Promote International Cooperation in Environmental Protection
 VI. Environmental Science and Technology, and Environmental Publicity and Education
 V. Protection of the Ecological Environment and Biodiversity
 IV. Territorial Control and Rural Environmental Protection
 III. The Prevention and Control of Industrial Pollution and the Comprehensive Improvement of the Urban Environment
 II. Improving the Legal and Administrative Systems Step by Step
 I. The Choice of Implementing a Sustainable Development Strategy
 VII. Deepening Structural Reform and Creating a Favorable Policy Environment for Grain Production and Circulation
 VI. Comprehensively Developing, Utilizing and Protecting Land Resources for the Sustainable Development of Agriculture
 V. Developing Agriculture by Relying on Science, Technology and Education and Changing the Grain Increase Method
 IV. Striving to Improve Production Conditions to Increase the Comprehensive Grain Production Ability
 III. China Can Basically Achieve Self-Sufficiency in Grain Through Self-Reliance
 II. Prospects for China's Consumption Demand for Grain
 I. New China Has Solved the Problem of Feeding Its People
 The Grain Issue in China
 VII. Guarantee of the Rights of Ethnic Minorities
 VI. Legitimate Rights and Interests of Women and Children
 V. Citizens' Rights to Receive Education
 IV. Protection of Workers' Rights
 II. Citizens' Democratic Rights
 V. Protection of the Right to Freedom of Religious Belief for Ethnic Minorities
 IV. Support for Independence and Initiative in Management of Religious Affairs
 III. Judicial and Administrative Guarantees and Supervision of the Freedom of Religious Belief
 II. Legal Protection of the Freedom of Religious Belief
 I. The Present Conditions of Religion in China
 Concluding Remarks
 IV. The Right to Freedom of Religious Belief
 III. The People Enjoy the Rights to Education,Culture and Health Protection
 II. Economic Development and the People's Rights to Existence and Development
 I. Ethnic Regional Autonomy System and the People's Political Rights
 VII. Foreign Exchange and Co - operation in the Field of Human Rights
 VI. Protection of the Rights of Ethnic Groups
 V. Legitimate Rights and Interests of Women and Children
 IV. Citizens' Economic, Social and Cultural Rights
 II. Guarantee of Citizens' Political Rights
 I.People's Rights to Subsistence and development
 Notes:
 V. Preservation and Development of the Cultures of Ethnic Minorities
 IV. Promoting the Common Development of All Ethnic Groups
 III. Regional Autonomy for Ethnic Minorities
 II. Adherence to Equality and Unity Among Ethnic Groups
 I. A United Multi-Ethnic Country
 VI. The Cross-Century Development Prospects for Human Rights in China
 IV. Protection of the Rights of Women and Children
 III. Civil Rights and Political Rights of Citizens Effectively Safeguarded
 II. Great Improvement in the Rights to Subsistence and Development, and Economic, Social and Cultural Rights
 I. A Historic Turning Point in the Progress of Human Rights in China
 VII. The News and Publishing, Broadcasting, Film and Television Industries Are Developing Rapidly
 VI. Popular Education Makes a Historic Leap
 V. Tibetan Studies Are Flourishing, and Tibetan Medicine and Pharmacology Have Taken On a New Lease of Life
 IV. Culture and Art Are Being Inherited and Developed in an All-Round Way
 III.Folk Customs and Freedom of Religious Belief Are Respected and Protected
 II.Cultural Relics and Ancient Books and Records Are Well Preserved and Utilized
 I.The Spoken and Written Tibetan Language Is Widely Studied and Used, and Being Developed
 Note
 VII. Developing International Cooperation in Drug Control
 VI. Raising the Consciousness of the Entire People Against Drugs
 V. Treatment and Rehabilitation
 IV. Exercising Strict Control over the Precursor Chemicals
 III. Cracking Down on Drug-related Crimes
 II. Constantly Strengthening Drug Control Legislation
 I.Sticking to the Position of Strict Drug Control
 IV. Guarantee Measures
 III. Plan of Action
 II. Targets and Principles
 I Current Situation and Prospect
 VII. Actively Carrying Out International Exchanges and Cooperation in the Realm of Human Rights
 V. Protection of Women and Children's Rights
 IV. The Economic, Social and Cultural Rights of Citizens
 II. The Guarantee of Citizens' Political Rights
 I. The Improvement of the People's Rights to Subsistence and Development
 V.The Aid-the-Rural-Poor Program in the Early Period of the 21st Century
 IV.The Aid-the-Poor Program for the Special Groups Among the Impoverished
 III.Major Contents and Channels of the Aid-the-Poor Program
 II.Policy Guarantee for the Aid-the-Poor Program
 I.The Course and Achievements of the Aid-the-Poor Program
 III. The Historical Inevitability of Tibet's Modernization
 II. Tibet's Modernization Achievements
 I. The Rapid Social Development in Tibet
 IV. Development in the Early Period of the 21st Century
 III. The Establishment of a Social Security System
 II. Formation of New Labor Relations
 I.Overall Stability in Employment Situation
 V. The Strategic Choice for Sustainable Development
 IV. Building an Ecology-Friendly Railway Line -- the Qinghai-Tibet Railway
 III. Ecological Improvement and Environmental Protection amid Economic Development
 II. Ecological Improvement and Biodiversity Protection
 I. Progress of the Ecological Improvement and Environmental Protection Work in Tibet
 III. Human Rights in Name, Hegemonism In Reality
 II. Confusing Right and Wrong and Calling Protection An "Abuse" of Human Rights
 I. Distorting Facts to Deceive the World Public Opinion
 VI. Improving the Management of Mineral Resources
 V. Achieving the Coordinated Development of Mineral Resources Exploitation and Environmental Protection
 IV. Widening the Opening of, and Cooperation in, Mineral Resources Exploration and Exploitation
 III. Increasing the Domestic Capability of Mineral Resources Supply
 II. Targets and Principles for Mineral Resources Protection and Rational Utilization
 I. The Present Situation of Mineral Resources and Exploration and Exploitation of the Resources
 VIII. International Exchanges and Cooperation in Human Rights
 VII. The Rights and Interests of the Disabled
 VI. Equal Rights and Special Protection for Ethnic Minorities
 V. The Rights and Interests of Women and Children
 III.Judicial Guarantee for Human Rights
 I. The People's Rights to Subsistence and Development
 VI. Employment Prospects for the Early Part of the 21st Century
 V. Employment of Women, Youth and Disabled People
 IV. Employment of Rural Workforce
 III. Improving the Quality of the Workforce
 II. Proactive Employment Policy
 I. Basic Employment Situation
 V. Regional Ethnic Autonomy Is the Fundamental Guarantee for Tibetan People As Masters of Their Own Affairs
 IV. The Tibetan People Have the Freedom to Inherit and Develop Their Traditional Culture and to Practice Their Religious Belief
 III. The Tibetan People Have Full Decision-making Power in Economic and Social Development
 II. The Tibetan People Enjoy Full Political Right of Autonomy
 I. The Establishment and Development of Regional Ethnic Autonomy in Tibet
 X. Social Security in Rural Areas
 IX. Housing Security
 VIII. Social Relief
 VII. Special Care and Placement
 VI. Social Welfare
 V. Maternity Insurance
 IV. Insurance for Work-related Injuries
 III. Medical Insurance
 II. Unemployment Insurance
 I. Old-age Insurance
 X. Arms Control, Disarmament and Non- Proliferation
 IX. International Security Cooperation
 VIII.The Armed Forces and the People
 VII. Science, Technology and Industry for National Defense
 VI. National Defense Mobilization and Reserve Force Building
 V. The Military Service System
 IV. Defense Expenditure and Defense Assets
 III. Revolution in Military Affairs with Chinese Characteristics
 II. National Defense Policy
 I. The Security Situation
 V. Historical Development of Various Undertakings in Ethnic Autonomous Areas
 IV. The Central Government's Support and Assistance for Ethnic Autonomous Areas
 III. The Right of Self-Government of Ethnic Autonomous Areas
 II. The Political Status of Regional Autonomy for Ethnic Minorities and the Establishment of Ethnic Autonomous Areas
 I. A Unified Multi-Ethnic State, and Regional Autonomy for Ethnic Minorities
 VII. International Exchanges and Cooperation in the Field of Human Rights
 VI. The Rights and Interests of the Disabled
 V. Equal Rights and Special Protection for Ethnic Minorities
 IV. Economic, Social and Cultural Rights
 III. Judicial Guarantee for Human Rights
 II. Civil and Political Rights
 I. People's Rights to Subsistence and Development
 IX. Judicial Protection of Intellectual Property Rights
 VIII. Public Security Organs Act on Criminal Infringement on Intellectual Property Rights
 VII. Customs Protection of Intellectual Property Rights
 VI. Protection of New Varieties of Agricultural and Forestry Plants
 V. Intellectual Property Rights Protection for Audio and Video Products
 IV. Copyright Protection
 III. Trademark Protection
 II. Patent Protection
 I. Basic Situation of the Protection of Intellectual Property Rights
 IX. Legal Guarantees of Women's Rights and Interests
 VIII. Women and the Environment
 VII. Women, Marriage and the Family
 VI. Women and Health
 V. Women and Education
 IV. Women's Participation in Decision Making and Management
 III. Women and Poverty Elimination
 II. Women and the Economy
 I. State Mechanism to Promote Gender Equality and Development of Women
 Annex III: Agreements on Disarmament and Confidence-Building Measures Between China and Relevant Countries
 Annex II: Laws and Regulations of China on Non-Proliferation Export Control
 Annex I: List of Arms Control, Disarmament and Non-Proliferation Treaties That China Has Joined
 VI. Tightening Non-Proliferation Export Control
 V. Actively Participating in International Non-Proliferation Efforts
 IV. Committed to National and Regional Disarmament
 III. Participating in and Promoting International Arms Control and Disarmament Process
 II. China's Basic Policy and Position
 I. International Security and Arms Control Situation
 X. Judicial Democracy
 IX. Government Democracy
 VIII. The Democratic Rule by the Communist Party of China
 VII. Respecting and Safeguarding Human Rights
 VI. Grassroots Democracy in Urban and Rural Areas
 V. The System of Ethnic Regional Autonomy
 IV. The System of Multi-Party Cooperation and Political Consultation Under the Leadership of the CPC
 III. The People's Congress System
 II. The CPC Led the People to Become Masters of the State
 I. A Choice Suited to China's Conditions
 V. Building a Harmonious World of Sustained Peace and Common Prosperity
 IV. Seeking Mutual Benefit and Common Development with Other Countries
 III. Developing by Relying on Its Own Strength, Reform and Innovation
 II. Promoting World Peace and Development with China's Own Growth
 I. Peaceful Development Is the Inevitable Way for China's Modernization
 X. International Cooperation in Environmental Protection
 IX. Environmental Science and Technology, Industry and Public Participation
 VIII. Environmental Impact Assessment
 VII. Economic Policy and Investment Concerning the Environment
 VI. Ecological Protection and Construction
 V. Protection of the Rural Environment
 IV. Protection of the Urban Environment
 III. Pollution Control in Key Regions
 II. Prevention and Control of Industrial Pollution
 I. Environmental Protection Legislation and System
 VII. Safeguarding Elderly People's Legitimate Rights and Interests
 VI. Participation in Social Development
 V. Cultural Education for the Aged
 IV. Social Services for an Ageing Society
 III. Health and Medical Care for the Aged
 II. Old-age Security System
 I. State Mechanism of Undertakings for the Aged
 Foreword
 X. State Support for the Development of Xinjiang
 IX. Establishment, Development and Role of the Xinjiang Production and Construction Corps
 VIII. Upholding Equality and Unity Among Ethnic Groups, and Freedom of Religious Belief
 VII. The People's Living Standard and Quality of Life Have Been Enhanced
 VI. Progress in Education, Science and Technology, Culture and Health Work
 V. The Economic Development of Xinjiang After the Founding of New China
 IV. Origin of the "East Turkistan" Issue
 III. The Administration of Xinjiang by the Successive Central Governments
 II. Diverse Religions Coexist and Spread in Xinjiang
 I. Xinjiang Has Been a Multi-ethnic Region Since Ancient Times
 Conclusion
 V. International Exchanges and Cooperation Regarding Food Safety
 IV. Law Regime and Technological Guarantee System for Food Safety
 III. Supervision of Imported and Exported Food
 II. Food Safety Regulatory System and Work
 I. Food Production and Food Quality
 Preface

 
 China A-Z HOME
Chapter VII Science, Technology and Industry for National Defense
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To meet the requirements of the development of weaponry and equipment and the socialist market economy, China is speeding up the development of its defense-related science, technology and industry, and making efforts to build a new system of defense-related science, technology and industry which is structurally optimized, organizationally efficient, technologically advanced and properly laid out.

Main Tasks

The main responsibility of China's defense-related science, technology and industry is to ensure the production and supply of military equipment to meet the needs of national defense. At the same time, it undertakes the important task of promoting the development of the national economy and enhancing the overall national strength.

In accordance with the requirements of the RMA with Chinese characteristics, the defense-related science, technology and industry strives to raise its capability for weaponry and equipment research and production, and accelerate the research and production of new- and high-tech weaponry and equipment. It adjusts the capability composition of weaponry and equipment research and production, giving priority to the building of capability of new- and high-tech weaponry and equipment research and production, and promoting the optimization and upgrading of the military industrial structure. It strengthens and improves its technology- and defense-based research work, and conducts explorations of frontier technology and future-oriented research, so as to expand its technological reserve. It employs new- and high- technologies to remold military industrial enterprises, so as to convert its weaponry and equipment production capability from a rigid structure to a flexible one. It enhances the development of military standards, so as to establish a universal system of technical standards tailored to new developments of weaponry and equipment. It carries out dynamic adjustments of the research and production of weaponry and equipment, so as to shorten the development cycle and reduce the cost of products.

While ensuring the fulfillment of military orders, the defense-related science, technology and industry vigorously develops dual-purpose technologies and actively participates in the development of the national economy. It promotes the development and technological advances of civilian products manufactured mainly by the military industry, such as those in the fields of nuclear energy and applied nuclear technologies; space and aviation technologies and ships and demolition technologies for civil use. To help bring about industrial upgrades and technological advances of the national economy, it supports the large-scale development of China's western region and the remolding of the old industrial bases in northeast China, and undertakes key construction projects and major equipment development and technical problem tackling tasks.

The first two decades of the 21st century will be a crucial period for the reform and adjustment of the defense-related science, technology and industry. It will adhere to the strategic guideline of combining military needs with civilian needs, reserving military potential in civilian capability, vigorously developing coordination, and making independent innovations, and persist in taking a new road of industrial development. It will establish and improve a mechanism of competition, appraisal, supervision and motivation, give impetus to the optimization and reorganization of resources and the upgrading of the industrial structure, strengthen the building of the basic capabilities of the defense-related science, technology and industry foundations, and enhance in an all-round way the overall quality and sustainable development capability of the defense-related science, technology and industry.

Reform and Adjustment

China's defense-related science, technology and industry continues to deepen its reform, optimize its industrial structure and resources allocation, accelerate system and mechanism innovation, and establish a streamlined and efficient research and production system.

Optimizing the industrial structure. China's defense-related science, technology and industry aims to form an industrial layout with military high-tech industries as the precursor, major dual-purpose industries as the main body, and military manufacturing industries as the foundation. It gives priority to the development of dual-purpose high-tech industries, absorbs advanced civilian technologies from all industries and trades for the service of national defense, and promotes the two-way transfer of military and civilian high technologies. It supports enterprises to develop projects and programs which are technology-intensive, produce good economic results, consume fewer resources, cause less environmental pollution and give full play to the advantages of human resources. It encourages the development of burgeoning industries with information technology, new materials, energy saving and environmental protection, life sciences, oceanic engineering and other high technologies as the precursor, so as to foster new economic growth.

Accelerating the reform and adjustment of military industrial enterprises. China's defense-related science, technology and industry optimizes the organizational structure of military industrial enterprises and encourages competitive enterprises to carry out strategic reorganization on the basis of market demand and their own advantages, in compliance with the principle of specialized division of labor and large-scale production and with products and assets as the link. Military industrial enterprises are impelled to establish a modern enterprise system, accelerate the pace of ownership system restructuring, establish a standard parent-subsidiary system and a legal person management structure, and change their enterprise operational mechanism. Full play is given to the guiding role of the state's input, to lead and channel social funds into the development of the defense-related science, technology and industry and carry forward the diversification of investors. Through reforms and adjustments, the main body of the military industry is streamlined, and a new defense-related science, technology and industry system established, which features a small core, extensive cooperation and military potential reserved in civilian capability.

Improving the innovation system of scientific research. Scientific research institutions engaged in innovation activities in basic research, strategic high-tech research and important public welfare research should expedite the establishment of a modern scientific research institution system according to the principle of clearly defined responsibilities and duties, scientific evaluation, orderly opening, and standard management. Market-oriented applied technology research and development institutions should speed up their transformation into enterprises run on a commercial basis. The goal is to form a defense scientific research system with defense scientific research institutions, institutions of higher learning and key enterprises as the main body, and to enhance the independent development capability of the defense-related science, technology and industry.

Promoting innovation in talents-related work. A new mechanism should be established as soon as possible for training, attracting, using, and retaining talented people, and for accelerating their growth, so as to create a well-structured contingent of high-caliber people in a whole array of principles. Impetus should be given to the reform and development of higher education for the defense-related science, technology and industry, so as to speed up the training of high-level specialized personnel urgently needed by the defense-related science, technology and industry. Preferential policies should be formulated to encourage college and university graduates, excellent students returned from overseas, and other scientific, technological and management talents from outside the defense-related science, technology and industry to take part in its building. In addition, the personnel employing mechanism and the distribution system should be reformed to raise the salaries and improve the conditions of those engaged in weaponry and equipment research, development and production.

Development of Civil Use Industry

China has made remarkable progress in putting military industrial technology to civil use in the past two years. In 2003, the output value of civilian products rose by 20% as compared with that of the previous year, accounting for more than 65% of the total output value of the defense-related science, technology and industry.

Nuclear power production is being industrialized. China's mainland now has nine nuclear power generating sets in operation, the total installed capacity of which is 7.01 million KW. Another two, each with an installed capacity of 1.06 million KW, are now under construction. In 2003, China's nuclear power production was 43.3 billion KWH, accounting for 2.3% of its total power production. Steady progress has been made in the construction of auxiliary projects for nuclear energy. A nuclear fuel production system tailored to nuclear power production has by and large taken shape, and the production of nuclear fuel has been technologically upgraded. Great importance is attached to the decommissioning of nuclear installations and the treatment of radioactive waste, and great efforts are made to enhance the awareness of environmental protection and ensure the safe disposal of all kinds of radioactive waste. The emergency response system for nuclear accidents has been gradually improved, and the response capability increased.

Major breakthroughs have been made in space technologies for civil use. Since October 1996, China has succeeded in 41 space launches. The successful launching of the "Shenzhou V" spaceship in October 2003 sent China's first astronaut into space. The key technological problems for the new generation of carrier rockets have been tackled. China has successfully launched various application satellites, including SSO (Sun Synchronous Orbit) and GEO (Geostationary Orbit) meteorological satellites, the HY-1 oceanographic satellite and CBERS (China-Brazil Earth Resource Satellite). The R&D of a DMEC (Disaster Monitoring and Environmental Control) satellite constellation, a large GEO satellite platform and a new generation of SSO meteorological satellites is going on smoothly. A lunar probe project was officially started in January 2004, and a lunar orbiting exploration is scheduled to be carried out by the end of 2007.

The aviation industry for civil use has made important headway in the R&D of feeder liners and general-purpose aircraft. ARJ21, a new jet feeder liner with 70 seats, is being independently developed, and is scheduled for delivery in 2008. The Y-12E general-purpose aircraft for use in high-temperature and plateau conditions and the Z-11 and Z-9 helicopters have all received airworthiness certificates and been put on the commercial market. The newly developed "Xiaoying 500" general-purpose plane made its first flight in 2003. The ERJ145 jet feeder liner jointly manufactured by China and Brazil has been delivered to users. An agreement has been formally signed on the building of an assembly line in China for the EC120 helicopter jointly developed by China, France and Singapore. Subcontracting business for the manufacture of foreign aircraft parts has been developing steadily, and begun to be integrated into the large-scale circulation system of the international aviation industry.

The shipbuilding industry for civil use has witnessed sustained rapid growth, with an output ranking third in the world for many years. In 2003, China's accomplished shipbuilding output, newly received orders and on-hand orders amounted to 6.41 million DWT, 18.95 million DWT and 26.23 million DWT respectively, accounting for a world market share of 11.8%, 18.9% and 17.7% respectively. Products manufactured by the shipbuilding industry for civil use have been exported to more than 90 countries and regions. The R&D and designing capability of the shipbuilding industry for civil use has been remarkably raised. It can now build and repair large ships, and has made new breakthroughs in building high-tech ships.

Cooperation with Foreign Countries

China's defense-related science, technology and industry take an active part in international exchanges and cooperation and opens wider to foreign countries. In the field of the military industry for civil use, China encourages military enterprises and institutions to develop both the international and domestic markets, utilize resources from both home and abroad, participate in the international division of labor, optimize the export product mix, and raise the international competitiveness of their products. China also encourages them to introduce advanced foreign technologies and management expertise, improve the use of foreign funds, expand the strategic cooperation with large multinational companies, and raise the technological level of the defense-related science, technology and industry. China attaches great importance to developing cooperation in defense technology with friendly countries, and promotes exchanges of and cooperation in defense technology in the international industrial community.

China's defense-related science, technology and industry takes a prudent attitude toward the export of military products and related technologies, and strictly complies with the policies and laws of the state on non-proliferation. On the export of missiles and other military products, it strictly abides by the Regulations of the PRC on the Export Control of Missiles and Related Items and Technologies, the Regulations of the PRC on the Export Administration of Military Products and the corresponding lists. China has invariably adhered to three principles concerning the export of military products: It should only serve the purpose of helping the recipient state enhance its capability for legitimate self-defense; it must not impair peace, security and stability of the relevant region and the world as a whole; and it must not be used to interfere in the recipient state's internal affairs.

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