ABSTRACT
As an emerging power, China’s defense strategy and efforts at defense conversion have attracted attention around the world. Over the past two decades, a more pacific security environment and a quickening internal commitment to economic development encouraged Chinese leaders to downsize the nation’s military-industrial complex.To avoid widespread displacement of workers, many of whom worked in plants located far from the growth centers of the new Chinese economy, the government diverted much of its defense industrial plant, equipment and manpower into making civilian products.This effort has had mixed results.While many people remain employed producing real goods and services, the efficiency of the converted facilities is often poor, and they remain uncompetitive with other producers inside China.This is the subject of this chapter.
