Nation opens defense industry to foreign companies

Beijing (indiatimes.com) – The country has taken its international thrust in military cooperation to a higher level by inviting foreign arms companies to invest in a sectin of its defense industry. The move will help build links with international arms makers, who have considerable influence on foreign governments and military establishments like the US Pentagon, sources said.

　　The move involves a gradual withdrawal of government participation in segments of the arms industry that are regarded to be less sensitive, and attracting investments from local private players and foreign companies. Some of these “less important military firms” that will be opened up for private investments are also involved in producing goods for the civilian sector, an official announcement sai

　　Companies that design and produce strategic and other major weapons involving “core state secrets” with a direct bearing on the national security will be kept out of the new liberalization process, an official guideline issued jointly by the Commission of Science,echnology, and Industry for National Defense, the National Development and Reform Commission and the State-owned Assets Supervision and Administration Commission, said.

　　The amount of State-held defense will depend on the importance of the weapons produced by each firm, the guideline said. There are indications that a huge amount of shares in several state-owned weapon makers that are regarded to be less sensitive would be made available for private investment.