【Epoch Times news on November 13, 2024】According to a source who works in an outsourcing unit of a central state-owned enterprise in the Chinese Communist Party’s military industry, there has been a sudden decrease in the mass production missions of military products since last October. It is reported that this is related to the realization by the Chinese Communist Party that their weapons and equipment are not suitable for modern warfare, based on lessons learned from the Russia-Ukraine conflict, prompting them to expedite separate research and development. Some military observers believe that the timing of the reduction in military product production coincides with the authorities’ major cleansing of the military-industrial complex, raising suspicions of a connection.
The informant, using the alias Wang Gang, used to work for a company under the China Aerospace Science and Industry Corporation, as a front-line employee. He later left the original company and joined a private company with collaborative ties to the original enterprise.
Wang Gang recently disclosed to Epoch Times reporters that when he arrived at his current company in May of last year, there were many mass production tasks for military products. However, starting in October of last year, the mass production tasks suddenly disappeared, leaving only sporadic tasks.
“For a part to have thirty or fifty pieces is considered a large quantity, but even such parts are rare; mostly it is small scale work with just three to five pieces.”
He mentioned that one day, a former boss from the company where he used to work called to inquire about the production situation on his end. That boss also received some military product missions from a large state-owned enterprise. The boss mentioned that now the mass production missions for military products were gone, with some still holding onto tasks dating back three or four years.
Wang Gang did not specify the type of military products they were producing. Epoch Times was unable to obtain further information on the sudden decrease in military product production.
According to Wang Gang, there are many private companies collaborating with large state-owned enterprises and national enterprises. When national enterprises have many military product missions, it also sustains the surrounding collaborating private companies. However, a substantial reduction in military product missions by national enterprises has put the collaborating private companies in a difficult situation.
“For example, in August of this year, the national enterprise I used to work for decided to reduce the number of collaborative units from fifty or sixty to eight. Even though the situation of tasks here is tough, you can imagine how challenging it must be for those companies that were eliminated. My former boss got a production permit for weapon equipment, arranged cooperation with the state-owned enterprise, partnered with others to purchase three million worth of new equipment, preparing for a big project. However, unexpected circumstances arose, as previously mentioned, and now they have to lay off employees. Only a few remain, and it’s uncertain how long they can hold out. The pressure is immense.”
Publicly available information shows that China Aerospace Science and Industry Corporation Limited, referred to as Aerospace Science and Industry Corporation, is a major central enterprise primarily engaged in the research, design, production, launch, and maintenance of missile industry and aerospace industrial equipment. The Aerospace Science and Industry Corporation is mainly involved in the research and manufacturing of missile weapon systems, as well as the development of miniature satellite technology, solid-state carrier rockets, and information technology.
Wang Gang mentioned that he learned from his boss that the lack of large quantities of military product missions may be due to military product leaks, rendering them unable to continue production. However, through other sources, he found out that the decision was made because the Chinese Communist Party realized their weapon equipment’s inadequacy in modern warfare, consistently “missing the mark,” and thus decided to start anew by redeveloping new military products.
Current affairs commentator Li Lin analyzed that it is insufficient to attribute the reduction in military product production missions solely to the Chinese Communist Party discovering the inadequacies of their weapon equipment in the Ukraine conflict. Western countries have long questioned Chinese companies supplying lethal weapons to Russia for use in the Ukraine conflict. Recently, Ukraine has accused that around 60% of the foreign components found in Russian weapons in the Ukraine conflict originated from China. Therefore, it is possible that the Chinese Communist Party discovered that the weapons or components used on the Ukraine battlefield were inadequate.
Li Lin pointed out that the decrease in military product production missions is more likely related to the significant clean-up of the equipment system by the Chinese Communist Party authorities since last year. Many military industry tycoons have already encountered issues, impacting the operation of enterprises directly, and some private companies that were previously collaborating may face expulsion or task cuts.
The whole military weapon equipment procurement information website under the Central Military Commission’s Equipment Development Department issued a notice in July of last year, openly soliciting bids for military equipment illegal procurement clues since October 2017, to rectify the corruption issues in equipment procurement bids.
Subsequently, former Chinese Communist Party Defense Minister Li Shangfu, along with a group of senior military leaders in the equipment system and high-ranking military industrial enterprise executives, have fallen from grace. This includes Yuan Jie, Chairman of China Aerospace Science and Industry Corporation, and Wang Changqing, Deputy General Manager.
Under the banner of “civil-military integration,” the Chinese Communist Party has extensively outsourced military products to private enterprises for decades. While further expanding, there have long been issues of corruption and security risks.
In 2014, a workshop director at Shenyang Aircraft Corporation, a subsidiary of the Aviation Industry Corporation of China (referred to as AVIC), accidentally discovered a major corruption case in the company. After reporting it, the individual faced retaliation. He revealed to Epoch Times that almost every factory in Shenyang Aircraft Corporation engaged in outsourcing production projects and corruption was rampant to the extent that personal interests trumped official responsibilities. The manufacturing of aircraft components had not even begun when funds were diverted. The military aircraft frequently experienced malfunctions, with significant safety hazards present in many military aircraft.
The workshop director further disclosed that in 2007, Shenyang Aircraft Corporation outsourced the manufacturing of parts for the J-8 and J-11 fighter jets to eight temporary factories, leading to numerous significant accidents. Some aircraft components were dismantled, with the factory owners using money to cover it up. Some parts were even assembled onto airplanes, posing potential safety risks.
Statistics show that from January to November 2016, the Chinese Communist Party’s three military branches had a total of ten aircraft crashes, including four naval aircraft, four air force aircraft, and one each from the army and aviation academies, resulting in the deaths of seven pilots.
Chen Mingshi, Director of the Institute of National Security at the Taiwan National Defense Institute, stated on November 11 to Epoch Times that in recent years, the Chinese Communist Party had been promoting “civil-military integration,” with a significant portion of the military products outsourced to private enterprises. Officials would take advantage of this process for personal gain, “through the so-called civil-military integration, many budgets are inflated, some of which go directly into individuals’ pockets. The opportunity for corruption is significant.”
He mentioned, “Usually, corruption involves receiving kickbacks, leading to manufacturers suffering losses, resulting in cutting corners, using subpar materials, and bribery to pass inspections, which is similar to all the substandard projects in China.”
On November 9, Xinhua News Agency reported that Chinese Communist Party Chairman Xi Jinping signed an order issuing the “Regulations on Equipment Support for the Military,” to be effective starting from December 1 of this year. Allegedly, the regulations optimize the “supply, management, and repair” mechanism of equipment support, strengthening the rigid constraints of equipment support work, among other measures.
Commentator Li Lin believes that following problems, the Chinese Communist Party generally takes remedial actions by enacting a new law or regulation as a conclusion. However, given the rotten nature of the military discipline within the Chinese Communist Party, external constraints are unlikely to be effective. Therefore, this regulation is merely a symbolic gesture.
Mark, host of the military channel “Mark’s Time,” also opined that Xi Jinping’s major cleanup of the military-industrial complex is unlikely to change the situation of military corruption.
Mark stated on November 11 to Epoch Times, that authorities are merely cleaning up personnel without addressing the underlying corrupt system. “Everyone buys their position through bribery, and after taking office, they need to make that money back. This is mainly done through various kickbacks. Some individuals fall from grace, but many others still hold onto a glimmer of hope, and while there could be some short-term restraint, in the long run, corruption will continue to prevail, and the quality of military products will remain in jeopardy.”