US report finds big weaknesses in China’s defence industry base
- Rand Corporation report for US Congress identifies gaps in imports and population challenges
- But centralised, single-party control is a mixed bag, authors say
In the report released last week, researchers at the Rand Corporation said other weaknesses included a lack of transparency in the massive state-owned conglomerates and – despite some advantages – single-party control over the enterprises.
The report – “Assessing Systemic Strengths and Vulnerabilities of China’s Defence Industrial Base” – was commissioned by the US Congress and completed in October, 2021.
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The report said China was reliant on the United States and US allies in several areas, including education, raw materials, advanced components, and intellectual property.
“China’s defence innovation system does not effectively transmit knowledge and information between its constituent components,” it said.
“The sheer scale of China’s practices for gathering these resources – education and IP – from foreign countries indicates the country’s own view of these areas as domestic vulnerabilities.”
As the “world’s workshop”, China has greater manufacturing capacity than any other country, but it also relies on foreign supplies – both bulk commodities and hi-tech components, it said.
The report said China was reliant on the US and its allies for five minerals needed in the defence industry.