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China Defence & Security Report Q3 2010

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China Defence & Security Report Q3 2010

China has been progressively modernising its armed forces, reducing the proportion of infantry, but raising the numbers in the air force and navy. At the end of 2007, China’s official figures showed a cut of 200,000 personnel.

This left the total strength at just under 2.3mn, keeping the country’s military activity as the largest in the world. This position comes from the Maoist, personnel-intensive ‘people’s war’ doctrine, which took avail of the country’s biggest and most easily deployable resource – its huge population. China’s Second Artillery Corps, of which nuclear missiles are a component, was one particular area which gained in size.

Major reforms have been undertaken since a change in policy in the 1980s, with extensive changes involved in an effort to transform the monolithic, state-run military-industrial system into a competitive, modern entity. Much attention has been given to the production of civilian products through the defence industry.

The conversion is intended to improve the efficiency of the industry and make use of redundant facilities, as well as aiding China’s military modernisation programme. The Commission on Science Industry and Technology for National Defence (COSTIND) has said there are 450 defence production lines producing civilian goods in China.

The next few years will see the restructuring and refining of the armed forces continue. For example, the air force will develop under a regional command structure. One key element will be for the country to improve its rapid reaction capability.

Despite avoiding any major societal unrest in 2009 as the economy slowed, the government continues to face widespread – if often small - public disturbances. Organised crime continues to feature as a growing challenge for the government.

Tibet and Xinjiang are weak links in the Chinese polity and are susceptible to manipulation by China’s enemies. Tibet has issues with international human rights activists. In Xinjiang, these are pan-Turkic Islamists based in Central Asia (Xinjiang’s Uighur population is mainly Muslim).

If the weak links falter then China believes it could experience further unrest. China will be particularly wary of ethnic unrest, especially in light of Kosovo declaring independence in 2008 with the backing of most Western governments. Beijing regards Tibet and Xinjiang as potential ‘Kosovos’ in its own territory and will do all it can to suppress rebellion there.

The reasonable economic recovery in the second half of 2009 shows some strength. November 2009’s retail sales, fixed asset investment and industrial production – the three major activity indices we look closely at – all continued to show solid rates of expansion, while increasing import and exports volumes signal that economy is booming once again.

However, as fiscal and monetary stimuli are cut, we expect to see a double-dip slowdown in H210 and 2011.

China Defence and Security Report Q3 2010 (July 24, 2010) | MarketPublishers.com
 
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