China to allow FDI in defense sector

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China will allow foreign investment in its defense sector according to state media Tuesday, as it looks to invigorate a long restricted and dormant sector.

Beijing News (via AFP) is reporting that firms producing less-sensitive military equipment and products for broader civil and consumer markets will be allowed to solicit domestic and foreign investors as part of broad plans for shareholding reform in the sector.

Defense-related companies will also be encouraged to raise funds on both domestic and overseas capital markets, the report said, citing Sun Qin, vice minister of the Commission of Science, Technology, and Industry for National Defense, the sector’s regulator.

Shareholding reform in the industry is expected to be completed within “several years,” according to the guidelines.