China has decided to allocate 4.9  billion yuan (about 600 million US dollars) in special funding to  subsidize outsourcing by its armed forces of some logistics  services before 2005, military sources said on Thursday.

Sources with the General Logistics Department of the Chinese  People's Liberation Army (PLA) noted that the special funding won  the approval recently from the Central Military Commission.

The funding covers subsidies for outsourcing catering services  and barrack services by headquarters of military units at or above the level of army corps and non-combat troops stationed in large  and medium-sized cities.

It also includes subsidies for upgrading water and power supply facilities for military units at or above the level, including  military academies and research institutions.

The sources said the move was aimed at ensuring that the armed  forces' logistics reform goes on as scheduled.

So far, the PLA has opened its 2,791 logistic units of  different kinds to civilian investment, involving 2,179 canteens.  Meanwhile, supermarkets have been introduced into the barracks to  replace the "servicemen's cooperatives".

Over 30,000 civilians have retired or been dismissed from the  army. Specialized companies have been hired to take care of the  issues of housing maintenance, water and power supply, tree- planting and sanitation in some of the PLA barracks.

Local governments at various levels have set forth preferential policies to assist these logistics reforms.

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