Red Army Inc.: An Analysis of the Military-Business Complex of the People's Liberation Army

Abstract

The decade-plus expansion of the People's Liberation Army (PLA) into both domestic and international markets has created a number of potential benefits and a variety of problems for the future of China's political, military, and economic establishments. The Central Military Commission's (CMC) adoption of the "one military, two systems" concept in the late 1980's', spurred PLA military and administrative units at every echelon to become heavily involved in business. Although according to Deng Xiaoping, "Army construction should follow the overall constructive plan of the country"; allowing the military to expand its industrial and support activities into the commercial market, while stimulating economic development, has facilitated increased corruption, smuggling, and profiteering within the PLA ranks. Furthermore, the increased independence provided for by the military's commercial success (profits of the Chinese Military Industrial Complex is estimated to have been about 10-15 percent of the total defense budget in 1992) also has potential implications for facilitating the reintegration of the military into the political process and undermining the PLA's professional development. The Chinese Communist Party's (CPC) ability to maintain stability relies heavily upon both the military infrastructure and the CPC's ability to provide sustained economic development. Many within China are concerned that an institutional separation (created by economic independence) between the Party, army, and state will create an entirely new and unpredictable dynamic at the center.

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Document Details

Document Type
Technical Report
Publication Date
Sep 11, 1998
Accession Number
ADA353111

Entities

People

  • Westmond C. Andrews

Organizations

  • Air Force Institute of Technology

Tags

Communities of Interest

  • Energy and Power Technologies
  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Budgets
  • Commerce
  • Defense Industry
  • Economic Development
  • Governments
  • Industrial Plants
  • International Trade
  • Investments
  • Military Budgets
  • Military Forces (Foreign)
  • Military Personnel
  • Military Science
  • Money
  • National Governments
  • National Security
  • Navies (Foreign)
  • Security

Readers

  • Asian Economic Studies
  • Economics