Military conversions: China's civilian companies grapple with integration

China has issued a new policy to speed up the integration of military and civilian enterprises. It was announced at the end of a recent key policy meeting, the 3rd Plenum of the CPC Central Committee. The guiding principles include reform of defense industrial systems, and welcoming more civilian companies to enter military scientific research, production and maintenance.

Building China's GPS.

This is country's leading company in navigation and positioning, BeidouStar. It was China's first listed company in the sector, and is one of the few private companies that provide national defense equipment.

Its chairman believes there's a huge lucrative market for civilian application of military technologies.

"A lot of advanced technologies were converted from the military. Now it's hard to separate military and civilian purposes. The Beidou navigation system also got its start in the army." Zhou Ruxin, board chairman of BeidouStar Navigation Company, Lte., said.

Zhou Ruxin showed us their latest product.

"This chip has reached the world's top standard by using nanotechnology. It was developed in May and will be used for our navigation products." Zhou said.

In 2000, China launched the first satellite in its navigation system, Beidou, which means the Big Dipper. It's an alternative to the US Global Positioning System, or GPS.

Fishery navigation is one of the civilian uses. Some 50,000 vessels have installed BeidouStar equipment. Now the company is aiming for more military orders.

The CPC plenary session decided to establish a state-level system to push forward the conversion of military technologies into civilian use. Zhou Ruxin says the reform will reduce military costs and improve quality. And more private companies will enter the once-monopolized military industrial field.

"We believe we have the capability to do what the military industrial enterprises are doing. With the government's new strategy, we have a better chance to compete with them. We hope one day our company will be treated equally with the state-owned. " Zhou said.

Zhou Ruxin is waiting for the actual implementation of the new strategy. He's excited about new opportunities for a greater market share for BeidouStar. His dream is that one day, the world will look to China's navigation system, for services from around the globe.