A New Direction for China’s Defense Industry

A New Direction for China’s Defense Industry

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As part of a larger RAND Project AIR FORCE study on Chinese military modernization, this document analyzes the individual strengths and weaknesses of four specific defense-industrial sectors — missile, aircraft, shipbuilding, and information technology — to explain variations in performance among those sectors, with a focus on differences in institutional arrangements, incentives, and exposure to market forces, and to evaluate the prospects for China’s defense industry and its ability to contribute to military modernization.