Military, civilians must unleash their joint power
China has to make greater efforts to integrate military and civilian industries, as it will further boost the economy, strengthen the national defense sector, and mark an important achievement of the comprehensive reforms over the past five years, reiterated President Xi Jinping, who is also the chairman of the Central Military Commission.
The military-civilian integration is an inevitable choice and effective strategy for a rising power to cope with resource, growth and security issues. In March 2015, Xi said the military-civilian integration has been elevated to a national strategy. In essence, military and civilian integration signifies reasonable distribution of national resources between the economy and defense sector. In peacetime, a major part of the resources are invested in the economy for the benefit of the people, while during wars more resources are diverted to the defense sector.
The military’s combat capability consists of personnel, weapons, facilities and equip-
Washington blames Beijing for its trade deficit, and criticizes China’s steel exports, market environment, and restrictions on the entry of foreign capital into some industries. Beijing, on the other hand, is unhappy with US restrictions on the export of high-technology products to China, and the standards and lack of transparency of Washington’s security review mechanism on foreign investment.
Steel overcapacity is a global concern. Yet the United States imposes anti-dumping and countervailing measures against Chinese steel products, with the tariff on some items being as high as 500 percent, which is nothing but trade protectionism.
Since all these issues could not be resolved at the US-China Comprehensive Economic Dialogue in Washington on July 19, the two countries need to deepen communication on trade issues, in order to reach a consensus on how to objectively view the trade imbalance and make coordinated ment, logistical support, intelligence, a command system, military theories, technologies including information and communications technology, and funds. Some of these resources now come from civilian enterprises, reflecting the importance of military-civilian integration to cope with complicated national security issues and improve the military’s combat capabilities.
In fact, military-civilian integration has made much progress. The 13th Five-Year Plan (2016-20) has laid out 100 major projects, and 40 of them are related to military-civilian integration. As a result, an increasing number of private enterprises are producing military products. By the end of 2015, private enterprises with the license to produce military weapons accounted for twothirds of the total enterprises in the sector, and their accumulated registered capital was more than 50 trillion yuan ($7.4 trillion). Also, the number
efforts to gradually rebalance bilateral trade.
China can moderately increase the import of US agricultural products, if in return Washington lifts the restrictions on Chinese agricultural products. The reciprocal arrangement of the 100Day Action Plan — the US exporting beef to China and China exporting chicken to the US — is a good example of how the two sides can strike a mutually beneficial deal.
Also, China wants to import more US high-tech products, for which Washington has to lift the restrictions on the sector as early as possible. To correct the imbalance in bilateral trade, China can also increase its investments in the US, but the US, in return, has to make its investment security review mechanism more open and transparent, and resume the talks on the bilateral investment treaty as soon as possible.
Moreover, China can consider opening up its service sector more expeditiously, and importing more oil and natu- of integrated military-civilian industrial parks has increased from 28 in 2010 to 140 today.
Besides, emerging strategic industries have grown rapidly. Last year, industries such as new generation information technology, new energy and new materials grew at about 10 percent.
The transfer of intellectual property rights in defense-related science and technology fields has accelerated. Several industrial bases and parks, and incubators for military-civilian integration have been established in places such as Beijing, Tianjin and Shandong province. The Tianhe supercomputer and Beidou navigation systems are just two of the scientific achievements that ral gas from the US. In return, however, the US has to create a favorable cooperative atmosphere.
Huo Jianguo, a researcher at the Center for China and Globalization and vice-chairman of the China Society for World Trade Organization Studies Since the US has had a trade deficit for four decades, the can boost national defense as well as economic growth.
Still, there is a need to further promote integrated military-civilian development to cultivate talents, conduct scientific research, build facilities and develop equipment in order to strengthen national defense and bolster economic growth. For example, military talents can be cultivated in non-military colleges, and the military can create a favorable environment to attract more civilian talents. There is also a need to raise military personnel’s salaries and material benefits.
Besides, military enterprises should implement deeper reforms by changing their management approach, reorganizing themselves, seeking mergers and acquisitions, and opening up some areas to the market. And private enterprises must seize the opportunity to participate in defense-related scientific research and production. Some regulations still prohibit private enterprises from entering certain military manufacturing fields. But these problems will be gradually solved, leading to the establishment of a new military product system headed by highly-competitive enterprises, problem cannot be solved overnight. More importantly, urging China to reduce exports to the US will not reduce Washington’s trade deficit.
The onus is on the US to take measures to improve its supply structure and quality, by loosening its control on the export of some special products, and increasing the volume of its energy and resource exports.
The US also has trade deficits with Germany, Mexico, including some private ones, which in turn will make weaponry purchase efficient, and encourage research into and application of new weapons.
Moreover, some military facilities and applications can be jointly built and shared by the defense forces and civilians — for instance, they can share airports, roads, ports, harbors and logistics. Also, concerted efforts must be made to promote the development of technologies, products, facilities and equipment that can be used by the military as well as civilians. For example, the Beidou navigation system can serve civilians and the military, and big aircraft can be used in both civil and military aviation.
To further promote militarycivilian integration, the government should strengthen service planning and establish military-civilian innovation platforms. And military and private enterprises should better connect with each other in order to expedite the integration of military and civilian factors of production.
The militarycivilian integration is an inevitable choice ...
The author is a professor at the college of economics, Renmin University of China. Japan and some other countries. Yet the Trump administration hasn’t decided whether it wants a strong or a weak dollar. A strong dollar will consolidate the US’ leading role in the world economy, but also raise its trade deficit. A weak dollar, on the other hand, will help boost US exports, but at the same time weaken the economic status of the US.
Although the US can export a lot more oil and natural gas to countries such as China, it
lacks the necessary infrastructure facilities to do so. For instance, its west coast doesn’t have a port that can handle the export of natural gas. So, it should build such a port.
Hopefully, US President Donald Trump’s anticipated visit to China will help resolve such issues and facilitate the stable development of bilateral economic and trade relations.
Lyu Xiang, a researcher at the Center for China and Globalization as well as the Chinese Academy of Social Sciences The US’ overall trade deficit is the result of its position in the global supply chain, and thus cannot be erased by China. Last year, the computer and electronics sectors’ share in the US’ total trade deficit was 24 percent — more than $170 billion in actual terms, of which $144 billion was with China. But US imports of computers and electronics from China also include products, parts and services from Japan, the Republic of Korea, Germany, France and even the US itself.
To change its position on the supply chain, the US first needs to overhaul its industrial sector, as history shows using trade policies to solve trade imbalance has never succeeded. Little wonder the US-China Comprehensive Economic Dialogue couldn’t
achieve any breakthrough in this regard.
That the two sides will continue to hold such talks goes without saying, but the US could feel disappointed again if it insists on using such dialogues to resolve the trade deficit issue.
The World Trade Organization has processed 525 trade disputes in 22 years, among which 39 were against China and 130 against the US, mostly for violating WTO rules, granting unreasonable subsidies, unfair competition, and abuse of trade restrictions.
According to the WTO, the US’ trade restrictive measures against the other G20 member countries in the first five months of this year increased by 26 percent year-on-year, while similar measures taken by the other G20 members against the US declined by 29 percent. This makes it obvious the US has become an obstacle to fair trade.
Sino-US trade therefore should focus more on investment, technology, research and development, finance, service trade, protection of intellectual property rights, law, culture, tourism and the joint development of other markets, and building a comprehensive, stable and mutually beneficial mechanism.
He Weiwen, a researcher at the Center for China and Globalization, and former commercial councilor at China’s Consulate Generals in San Francisco and New York