China Defense Industry Posts 2004 Growth
By Associated Press
SHANGHAI, China — China's defense industry recorded strong growth in 2004, with revenues climbing more than 25 percent, while seven military-controlled companies issued public shares, state media reported Tuesday.
The value of defense industry production for civilian use rose 26.8 percent from a year ago to 165.6 billion yuan ($20 billion), the official Xinhua News Agency reported.
Revenues earned by defense companies rose 26.4 percent, the report said without giving dollar figures.
Military-run companies increasingly are raising funds in domestic share markets and are expanding into overseas markets, Xinhua said, citing Jin Zhuanglong, spokesman for the Commission of Science, Technology and Industry for National Defense.
China now has 49 defense industry companies with shares trading on its exchanges in Shanghai and the southern city of Shenzhen, seven of which listed shares last year, the report said. It did not name the companies.
The government rarely releases reports on China's defense sector.
Many military-controlled companies formerly devoted to producing arms and other materiel have shifted to civilian production, focusing on motorcycles, optical equipment and heavy machinery, among other areas.
The army was ordered to divest from many business holdings in the late 1990s. But the divestiture focused mainly on commercial businesses, such as hotels and other service enterprises. Many army-operated farms and factories remain under military control.
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