China Spurs Domestic Military Sector with Stolen Tech, R&D Investment: Report

[Boats]

China Spurs Domestic Military Sector with Stolen Tech, R&D Investment: Report
By: Daniel Holl - The Epoch Times News - 07-24-21
Re: https://www.theepochtimes.com/china-...t_3915832.html

Photo link: https://img.theepochtimes.com/assets...3-1200x720.jpg
Chinese People's Liberation Army (PLA) soldiers taking part in military training at Pamir Mountains in Kashgar, northwestern China's Xinjiang region on Jan. 4, 2021. (STR/AFP via Getty Images)

China is racing to catch up to the military superiority of the United States. It’s doing so by beefing up domestic innovation efforts in tandem with ongoing intellectual property theft efforts, according to a recent think tank report.

At the same time, the military arm of the Chinese Communist Party (CCP) is hindered by both the trappings of a socialist command economy and the inability to develop cutting-edge technology on its own, the RAND Corporation report (pdf) titled “Defense Acquisition in Russia and China,” said.

According to the June report, “China’s reliance on intellectual property theft means its weapons are years behind, but the Chinese recognize that shortcoming and are investing in and growing organic capabilities through joint ventures and acquisition of foreign technology.”

The report, drafted for the United States Army, outlines how China is moving away from its standard model of copying other countries. “Overall, the PLA has overcome many technological barriers and is the clear pacing threat to the United States in defense acquisitions.”

Theft and Acquisition

The Chinese innovation model for years has been to steal and replicate, which the RAND authors refer to as the “copy-replace model.” Many divisions of the People’s Liberation Army (PLA) are armed with replicates of other nations’ weaponry.

RAND cites that Chinese aircraft bear striking similarities to U.S. and Russian counterparts. Among the list of call signs are the American F-35 Lightning II and the similar-looking Chinese J-31 Gyrfalcon.

Another jet, known as the J-20 Mighty Dragon, is similar to the American F-22 Raptor. But according to the report, despite the J-20 going through relatively quick development, RAND estimates that China is as far as 20 years behind the United States in military aviation.

On the ground, the PLA’s domestically produced standard service rifle of roughly the last 25 years, the QBZ-95, may soon be replaced by a copied model. The replacement, which is unofficially known as the QBZ-191, is a near copy of the Heckler and Koch 416, according to analysis from The Firearm Blog. This rifle is also strikingly similar to an AR-15.

The CCP’s “reliance on theft of intellectual property for its weapon development has helped keep it competitive but has pegged it several years behind the cutting edge,” according to RAND. This has led China to increase efforts in its own R&D.

Innovation

China’s domestic military spending has been on the rise for recent decades, and its approach to innovation has met with a paradigm shift in recent years.

The report writes, “Chinese military expenditures grew tenfold in constant dollars over the past 25 years, with spending reaching an all-time high of $250 billion in 2018.” By comparison, the United States had a defense budget of $700 billion the same year.

Chinese leader Xi Jinping’s takeover of the CCP led to several systemic changes in the PLA’s weapon development strategy. Since 2016, the military and commercial sectors have become more closely integrated. Military designs are often contracted out to civilian companies, albeit state-owned.

Rand reports, “for a sense of scale, of the top 22 highest-grossing defense firms worldwide, nine are from the United States and eight are from China.” Chinese salaries for project managers and engineers are also becoming competitive with the United States. This further serves to lure Chinese nationals attending universities abroad back home.

Almost all Chinese students began living abroad after graduating in 2000. By 2016, nearly 65 percent of Chinese students returned to China.

Barriers to Battle

Money and theft are not able to solve all of China’s development problems. “The PLA is still struggling to spur domestic innovation and close the gap on a few glaring technical deficiencies, such as high-end chips, silent submarines, and aircraft engines,” according to the report.

RAND highlights internal impediments stemming from the political structure of communism. The report states, “even as it strives to clear these technical hurdles, the PLA must address the institutional inefficiencies and barriers related to management and quality assurance that continue to frustrate its efforts at reform.”

Many Chinese businesses’ internal hierarchies are based duration of employment and personal relationships rather than meritocracy. Despite large numbers of students returning to the country, many existing Chinese companies fail to effectively integrate returning talent, reported RAND, citing ineffective management practices.

Further, “The design of Chinese defense contracts also does little to encourage transparency and accountability.” The language in contracts is vague, contract winners are guaranteed a share of profits on top of costs, and low bidders for contracts are given consolation projects. These vestiges of the command economy result in little to no incentive to innovate, according to RAND.

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Personal note: It seems the US hasn't learned a thing. Back in the 50's China and Japan
would reverse engineer just about anything the could find in the U.S. Then remarket the
same products to the U.S. at a far cheaper price. I've seen this happen I've lived through it
I've seen small Mom & Pop repair shops go out of business because China & Japan could
make the same product for less then the repair fees. Hence knocking out the little guys
repair business. It's been an ongoing scheme of both countries to take the market from
U.S. made products - at lower rate - now its China or Japan made products because its
cheaper but doesn't last as long as U.S. made products. Markets tumbled or failed in the
U.S. and so did the small Mom & Pop repair shops putting them out of business and living
on scraps from their savings and the lower U.S. Social Security options.
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We haven't really learned much other than to profit from oil and gas and high tech
equipment that is purchased and re-copied once again by both China & Japan. As far
as business's goes in this country - U.S. People have taken a back seat to their profitable
years - to look for crumbs - from their savings & now government subsides.
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The are doing it every year. Plus whatever new design's come out - they are once again
subject to being cornered by Japan and China for lessor monies. USA products are
re-engineered and sold back to us for a profit.
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We used to lead the way in the world - but we've fallen into the international trap of
allowing our technology be reverse-engineered - and hence our cost rises where as
the re-manufactured goods are of lessor quality - and breakdown more often. When
will we learn from these issues. Is our Government blinded by cheap products so
that USA made products will cost more to their citizens. What a Flip-Flop of U.S.
progress in the market place; and unemployment surges each and every year
because of the foreign products being sold - instead of Made in U.S.A. products.
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And you wonder why we can't get good paying jobs any more - so it results in
more unemployment. I could go on but whose listening!
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Boats