China OKs private investment in defense sector

BEIJING -- China has pledged to further open its defense-related industries to private capital in a "fair and safe manner", according to an investment guideline unveiled Thursday.

Private investors and State-owned military enterprises will receive equal treatment in multiple areas, including licensing and taxation, said a guideline jointly created by the central government's defense industry supervisor and the General Armament Department of the People's Liberation Army.

The guideline also highlighted security protocols for private players involved in related industries and pledged to boost supervision in order to safeguard national security.

The guidelines will only be applied to private investors on the Chinese mainland.

A general policy in support of private investment that also briefly addressed the defense industry was introduced in May 2010 by the central government.