MCF Linkages. Each MCF system entails linkages between dozens of organizations and government entities, including:
- Ministry-level organizations from the State Council: Examples include the National Development and Reform Commission, Ministry of Foreign Affairs, Ministry of Industry and Information Technology, Ministry of Education, and key state entities such as the State Administration of Science and Technology in National Defense and others.
- Lead military organs subordinate to the Central Military Commission: CMC Strategic Planning Office, Joint Political, Logistics, and Equipment Development Departments, as well as operational units and the regional military structure at the Military District and Sub-District levels; military universities and academies such as National Defense University, Academy of Military Science, National University of Defense Technology, and service institutions.
- State-sponsored educational institutions, research centers, and key laboratories: Prominent examples include the “Seven Sons of National Defense” (Harbin Institute of Technology, Nanjing University of Science and Technology, Northwestern Polytechnical Institute, Beijing Institute of Technology, Harbin Engineering University, Beihang University, Nanjing University of Aeronautics and Astronautics), as well as certain PLA-affiliated laboratories of Tsinghua University, Beijing University, and Shanghai Jiaotong University, North University of China, and others.
- Defense industry: The ten major defense SOEs continue to fill their traditional roles providing weapons and equipment to the military services. Many defense SOEs consist of dozens of subsidiaries, sub-contractors, and subordinate research institutes.
- Other SOEs and quasi-private companies: High profile examples include PRC high-tech corporations and important SOEs like COSCO, China National Offshore Oil Company, and major construction companies that have roles in BRI projects as well as helping the PRC build out occupied terrain features in the SCS.
- Private companies: MCF efforts also seek to increase the proportion of private companies that contribute to military projects and procurements. These enterprises include technology companies that specialize in unmanned systems, robotics, artificial intelligence, cybersecurity, and big data.
- Multi-stakeholder partnerships: In practice, many MCF efforts involve partnerships between central, provincial, or city government entities with military district departments, PLA departments, academia, research entities, and companies. A majority of provincial and local governments have announced MCF industrial plans, and more than 35 national-level MCF industrial zones have been established across China. MCF-linked investments funds created by central and local governments and private investors total in the tens of billions of dollars.
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OFFICE OF THE SECRETARY OF DEFENSE
Annual Report to Congress: Military and Security Developments Involving the People's Republic of China
