Recently, the Chinese military, along with other government departments, issued a joint order to prohibit the sale, assembly, and marketing activities related to retired military equipment. The notice directly points out “security risks of military secrets”, exposing loopholes in the disposal process of retired equipment by the People’s Liberation Army (PLA), from scrapping to circulation in the market.
In recent years, retired PLA equipment has been consistently finding its way into both online and offline markets. Some businesses openly sell parts, equipment, and components, while others utilize dismantled pieces to assemble counterfeit military items for exhibitions and commercial promotion.
The Ministry of Public Security of China released a notice on July 28 titled “Notice on Prohibiting Sales Activities of Retired Military Equipment”, signed jointly by various departments including the Central Military Commission’s Logistics Support Department, Equipment Development Department, PLA Political and Legal Affairs Commission, Ministry of Public Security, State Administration for Market Regulation, and State Administration of National Defense Science and Technology Industry. The notice acknowledged the “negative impact” and “security risks” caused by certain operators openly selling sensitive information related to retired military equipment online and offline.
Chinese military scholar Li Xiangyang (pseudonym) told reporters that in recent years, individuals have been selling military equipment online, including rubber boats, binoculars, canteens, old uniforms, knives, and weapon accessories. However, authorities do not view this retired equipment as ordinary scrap. Some parts are marked with serial numbers, models, and signs of use, which could potentially reveal production batches, maintenance levels, and quality information of PLA equipment. Many retired items are required to be destroyed according to regulations, with metal materials being uniformly recycled. The main purpose of the notice is to enforce anti-spy laws and prevent foreign countries from obtaining information on Chinese military technology.
The notice specifies that no unit or individual is allowed to sell retired military equipment. This includes various equipment, ammunition, devices, related parts, and materials approved for decommissioning and disposal. However, military dismantling parts listed in the China Rongtong Asset Management Group’s public sales catalog, along with other equipment approved for sale by the PLA, are considered exceptions and can still be openly traded.
Furthermore, any unit or individual is prohibited from using retired equipment parts for production, modification, assembly, and sale of counterfeit military items resembling PLA equipment. Commercial marketing and promotion of retired equipment and related replicas are also banned.
Military enthusiast Li Yuansong stated that military gear has long been collected by enthusiasts. It is said that authorities are concerned about foreigners studying these scattered equipment pieces in civilian hands to understand the Chinese military-industrial situation. He mentioned, “Many of the Chinese military equipment originated from Soviet-era technology, with only a small amount transitioning to Western technology after reforms and opening up. The majority are updated equipment based on Soviet military foundations, with rough craftsmanship. If dissected and studied by Western weapons experts, they would probably find them outdated. It’s not just about secrecy; it’s also about not wanting foreigners to know how outdated China’s conventional weapons are.”
The official notice did not disclose the types, quantities, and sources of retired equipment currently circulating in the market, nor did it mention whether any military information leaks have occurred. The notice only generalized the previous situation as causing “negative impact” and “security risks” while emphasizing the need to protect military interests, image, and secrets as reasons for issuing the ban.
The notice does not completely prohibit all transactions involving retired military equipment. It stipulates that items listed in the China Rongtong Asset Management Group’s “Retired Military Equipment Dismantling Parts (Civil-Military Dual-use) Public Sales Catalog,” as well as other equipment approved by the PLA, can still be publicly sold.
The China Rongtong Asset Management Group, a state-owned proprietary enterprise managed by the Communist Party of China, oversees the disposal of some retired military equipment and materials. In 2022, a document jointly issued by the military, public security, and other departments mandated the inclusion of unexploded ordnance-related materials, ammunition cases, and packaging recovered from training grounds into the retired military equipment material disposal plan, to be handed over to the China Rongtong Resource Development Group for processing.
Military scholar Su Pei (pseudonym) told reporters that the operations of the PLA have been shrouded in secrecy, lacking external supervision in equipment procurement, retirement, and asset disposal. The fact that entrepreneurs could openly sell retired equipment on the market suggests the possibility of military personnel profiting from selling related materials through underground transactions.
Su Pei emphasized, “This notice repeatedly stresses the military’s image, indicating that what the CCP is concerned about is not just leaking secrets, but also individuals within the military selling used products through underground trades, eventually ending up in the hands of foreign enemies. Such situations have already occurred in coastal areas.”
Previously, the CCP cracked down on activities selling products under the names “military special supply” and “military exclusive supply”, focusing on combating businesses falsely marketing products under military names. This ban directly covers actual retired equipment, dismantling parts, and assembled counterfeit items. However, the notice did not clarify whether the military is blocking sales channels due to secrecy concerns or uncovering military interest chains within.