China’s Defense Industry Development Policy—With Focus on the Implications Using the Dynamic Model
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This study explores seven decades of development and evolution in China’s defense industry (DI) policy since 1949 via Systems Thinking methodology; to construct the issue interlinked by dynamic, complex, domestic and international factors; and to propose a dynamic model for the construction of China’s armament systems. Furthermore, this study will attempt to elaborate how China, based on its traditional philosophy of “army integrated into civilian support and sustained through the people,” establishes a win–win–win situation of DI development. This study finds that China uses DI development to lead civil industry upgrades and, with its colossal economic scale, helps to boost overall macroeconomic growth. China then applies its economic and industrial advantages to support defense building. In this way, a positive feedback cycle mutually supported by defense building, technological and economic development is created. With the trend toward the commercialization of global armaments, this dynamic model is worthy of reference for developing countries, newly industrialized countries, and those countries which are facing the issue of DI transformation.
Abstract
This study explores seven decades of development and evolution in China’s defense industry (DI) policy since 1949 via Systems Thinking methodology; to construct the issue interlinked by dynamic, complex, domestic and international factors; and to propose a dynamic model for the construction of China’s armament systems. Furthermore, this study will attempt to elaborate how China, based on its traditional philosophy of “army integrated into civilian support and sustained through the people,” establishes a win–win–win situation of DI development. This study finds that China uses DI development to lead civil industry upgrades and, with its colossal economic scale, helps to boost overall macroeconomic growth. China then applies its economic and industrial advantages to support defense building. In this way, a positive feedback cycle mutually supported by defense building, technological and economic development is created. With the trend toward the commercialization of global armaments, this dynamic model is worthy of reference for developing countries, newly industrialized countries, and those countries which are facing the issue of DI transformation.
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