By Yang Chao, Research Team on “The Institutional Mechanism and Policy on Promoting Innovative Civil-Military Integration”, Research Department of Innovative Development, DRC

Research report, Special Issue No.18, 2017 (Total 1542) 2017-7-12

Abstract: The electronic information technology featured by its general purpose and the role of electronic information products in modern national defense determine that civil-military integration is an inevitable option required by modern defense and an effective way to develop electronic information industry. The civil-military integration of China’s electronic information industry has made some progress. The state and local military enterprises are extensively going in for making civilian products while non-military enterprises are engaged in R&D, production and maintenance for military procurement. However, the military procurement demand in some fields is difficult to be satisfied by the market supply, the military procurement tax preference covers limited items of products, the price of defense procurement is high and the military industry enterprises are troubled by brain drain. Therefore, on the basis of retaining necessary military industrial electronic information enterprises, we need to appropriately expand the scope of military procurement tax preference, adjust the procurement pricing, and improve the talent protection mechanism in the field of military electronics in order to ensure low-cost, fine-quality and adequate-quantity supply for China’s demand of national defense electronic information products.

Key words: military industry, electronic information, civil-military integration