ABSTRACT
This chapter explores these themes in detail. “Act One” examines the historical antecedents of the Chinese military-business complex, especially the imperial, pre-1949, and Maoist periods, focusing on the similarities and differences between these earlier systems and the current system. It then identifies the circumstances, political constraints, key players, and critical decisions involved in the decision to expand the PLA’s role in the post-Mao economy, as well as the course of its development over the last twenty years, and analyzes the evolution of structure and process in the Chinese military-business complex, focusing specifically on changes in hierarchy, regulation, and decision-making procedures. “Act One” explores the potential and actual consequences of increased military participation in the economy, analyzing the various organizational, legal, finan-
cial, normative, and coercive countermeasures undertaken by the political and military leaderships to mitigate the observed and putative negative effects, such as the increased incidence of military corruption. “Act Two” assesses the origins and relative success of the divestiture of the Chinese military economy initiated in July 1998. “Act Three” explores new trends in PLA involvement in the economy, in particular the rise of the “digital triangle” in the defense IT sector.
