(Yicai Global) Dec. 5 -- China has called for the introduction of private investors in the defense sector in order to help companies carry out joint-stock system reform, in an opinion paper issued by the General Office of China's State Council on the promotion of civil-military integration in the national defense technology industry.
Key areas for the industry to focus on include military-to-civilian transformation, civilian participation in military sectors, the industrialization of dual-use technologies with civilian and military applications, and sharing of military and civilian resources to promote integration, the document states.
The State Council discusses the reclassification of defense firms based on ownership structure. The document also says private investors able to adhere to national security guidelines could participate in the joint-stock system reform of defense companies, with the exception of strategic weapons and other special fields.
The document also necessitates that qualified defense firms support listed companies, establish an independent director system and look into the establishment of a national special management stock system.