China will promote the integration between military and civilian sectors in the defense technology industry, according to a circular issued by the State Council on Dec 4.

Private capital will be allowed to join in the shareholding reform of defense industry companies, except for some companies in special fields, such as strategic weapons. Eligible defense industry enterprises are encouraged to go public or inject their assets in publicly listed companies.

Defense industry enterprises should expand cooperation with civilian companies, develop more civilian products and transfer more military technologies to civilian use.

Management for the access and exit of weapons and equipment production will be streamlined. Permits for weapons production will be reduced.

Defense technology resources should be shared by military and civilian sectors, including labs, innovation centers, experiment facilities and standards. A mechanism should be set up to collaborate military and civilian sectors in technological innovation.

Technologies for space, cyber space and the ocean are key fields for military-civil integration, such as space nuclear facilities, heavy-lift carrier rockets, cyber security technology and deep-sea exploration.

The defense industry should serve national and regional economic development, according to the circular. Defense industrial enterprises are encouraged to promote strategic cooperation with local governments and implement a batch of major integration projects.

Trade of defense products should be upgraded by exporting more high-tech equipment, such as nuclear technology equipment, space, aerial and high-tech ship equipment.