China will further open up the defense industry to private companies and encourage more private funds to invest in defense companies, under a new guideline released by the State Council, China's cabinet, on Monday.
The move is part of the country's effort to improve integrated military and civilian development, which is aimed at boosting defense science, technology and industry development by bringing in private investments.
The guideline said that China will improve policies and break industry barriers to promote resource-sharing between the military and civilian industries.
"China will fully utilize the market's role in resources distribution, invigorate all kinds of market players, and promote fair competition … to push for technological advancement and industry development," the guideline read.
The country will also actively seek private capital to participate in restructuring of defense companies, the document said.
