Be wary of defence contractors, Chinese study warns, pointing to US system

A recent Chinese study has cautioned Beijing about the perils of defense contractors wielding excessive sway over defense policy, drawing parallels to the profit-driven expansion of the United States' military-industrial complex. Published on Monday, the study, penned by researchers at Shanghai Jiao Tong University's National Institute of Strategic Studies, highlighted how the "iron triangle" in Washington – comprising the Department of Defense, private contractors, and congressional committees – has commandeered US national security strategy.

According to the study, the symbiotic relationship between defense contractors, the military, and politicians has led to a self-reinforcing cycle of military expansion, heightened revenue, mutual benefit, and further escalation, driven by profit rather than external security concerns. Lead author Gu Jianyi, a former military institute researcher, warned that this model prioritizes capital gain over national security and public welfare.

The report advised China to delineate roles and responsibilities among government, military, and defense contractors, establishing a framework grounded in precise roles, checks, balances, and transparency. However, experts underscore that the underlying political structures of China and the US differ significantly. In China, where the Communist Party holds authority, the primary threat to the People's Liberation Army (PLA) stems from internal decay, such as the weakening of party dominance and the splintering of the military-industrial complex into entrenched factions.

Song Zhongping, a mainland military analyst and former PLA instructor, emphasized the necessity of thwarting the emergence of "small circles" or entrenched cliques, insisting on robust legal frameworks and stringent internal oversight to thwart the growth of these factions. Beijing's decade-long anti-corruption drive within the PLA, which has led to the removal of high-ranking military officials and dismantling of procurement networks, is aimed at addressing these internal threats.

In some instances, procurement fraud resulted in the use of inferior materials, jeopardizing technical reliability. Notably, the rocket force severed around 200 partnerships with experts and suppliers in the past year due to procurement issues. Experts suggest that these anti-corruption measures are not merely temporary but a permanent strategy to eliminate risks permanently.

The Shanghai researchers further stressed the importance of fostering independent innovation to overcome technological hurdles and secure self-reliant supply chains. They also advocated for technology transfers between the military and civilian sectors, aiming to create a harmonious, reciprocal relationship between defense and economic growth, while vehemently rejecting the flawed paradigm of conflict, expansion, and arms races to fuel industrial progress.