C4ISR China’s desire to fight and win “local wars under modern high-tech conditions” requires a survivable, robust, reliable, and sophisticated C4ISR system to harness battlespace information and make it available to commanders and civilian decisionmakers. Communication nodes and intelligence fusion centers are critical at all levels to support joint operations. The PLA continues to upgrade its communication capabilities, which eventually will rival the most modern civil networks. Command, control, communications, computers, and intelligence (C4I) modernization and automation have been a PLA priority for nearly 25 years. China is steadily improving its C4I capabilities by leveraging commercial information technologies to advance ambitious plans to create a high-technology electronic environment capable of supporting a modern military in both peace and wartime. The PLA is trying to develop a command network capable of rapidly passing orders and information up and down the chain of command and moving intelligence to decision makers at the national and war zone levels. China’s development and deployment of state-of-the-art ISR capabilities are uneven and will further complicate the PLA’s ability to train in a realistic joint warfare environment and ultimately to fight a modern battle. Currently targeting is a problem; however, with the emphasis on space-based imagery and reconnaissance satellites, this lik ely will improve over the next decade. Information Operations The PLA is developing its information operations (IO) capabilities to target and damage or destroy enemy information systems and weaken the enemy’s command, control, and overall operational capabilities. Even though these capabilities are improving and the PLA is conducting IO training, equipment is dated and does not appear to be readily available to most units. Although current PLA IO systems are older, domestic production, along with foreign technology transfers, probably will give the PLA access to a wider range of modern equipment in the future. The Role of Surprise and Reduction in Warning Time Chinese military writings prescribe use of deception at the campaign level to achieve maximum surprise and therefore reduce warning time. Campaign deception is military deception implemented under the unified leadership of campaign commanders to achieve campaign goals and falls between strategic and tactical deception. This type of deception can be accomplished through camouflage, feints, and simulation. PLA writings affirm the belief that a surprise attack can determine the success or failure of a campaign. However, surprise in an attack cannot ensure the favorable outcome of a war. In the Chinese view, using surprise attacks to launch a war plays an important role in seizing the initiative during the initial phase of a conflict. To achieve surprise, a campaign or battle must meet two basic conditions: “swift action” and “hidden undertakings,” with the latter the denial and deception measures the Chinese would employ to achieve tactical surprise on the battlefield. Training and Exercises PLA doctrine dictates that training focus on the ability to conduct operations in local high- intensity, short-duration conflicts. The PLA is meeting its training objectives through professionalization of its officer and NCO corps, standardization of its training programs, increased realism of its exercises, and improvements in training facilities. The PLA has placed significant emphasis on training NCOs and improving its professional military education (PME) programs to develop a more modern, professional military force. Following the reduction of compulsory service from 3 to 2 years, the PLA’s NCO system underwent a major reform, which included efforts to improve training, recruit soldiers with specialized skills, and improve pay and benefits. The PLA views improving PME as critical to ensuring it has a professional, properly trained leadership cadre. In 2001, the PLA published the Military Training and Examination Program (MTEP). Developed and implemented along service lines, it provides standardized guidance for all PLA military training. China is attempting to use this program as a mechanism to implement a more realistic training program directed toward developing a force capable of operating in a modern, high-technology combat environment. The MTEP provided a departure from previous PLA training standards by dictating that tactical training be tailored to a unit’s specific operational tasks. Although early in its implementation phase, the MTEP is quite different from previous PLA training norms and could have a significant effect on developing military skills. Training facilities and infrastructure have received increased resources. These facilities and infrastructure include training aids and centers and ranges that offer access to more realistic training, sometimes through use of simulations and other computer-based technology. The PLA has emphasized the benefit of being able to ????uate training at these facilities and encourages commanders to exchange roles for greater exposure to the other services during training. Access to the more realistic training at these facilities will become more important in the next several years as the PLA continues to take delivery of and integrate advanced weapon systems into its inventory. PLA training and exercises have focused increasingly on areas related to modernization, particularly development of new combat methods, operational experimentation, joint operations, communications, amphibious operations, and air defense. In recent years the PLA appears to be trying to improve training realism by stressing adverse conditions, diverse terrain, and night operations. Several factors hampered PLA training in 2003. The outbreak of SARS in China prompted the military to take precautions that most likely were factored into planning and ????ution of PLA training. In late April, a MING submarine accident that killed more than 70 sailors garnered high- level attention and most likely influenced PLA naval training and operations. The PLA has increased its interaction and cooperation with foreign militaries to improve political and military ties. This activity has taken the form largely of combined exercises geared toward exposing the PLA to foreign ideas and theories of warfare. An important example is an August 2003 counterterrorism exercise involving the PLA and five Shanghai Cooperation Organization member countries. The PLA will continue to focus on improving training standards and realism. Training concepts and doctrine will evolve, along with experimentation with new tactics and combat methods. Much of this experimentation and development will come in the areas of communications, joint operations, and integration of advanced weapons. In the next year, training probably will become more complex and will place more emphasis on applying skills rather than increasing basic familiarization. The PLA also will continue increasing its interaction with foreign militaries. This effort will remain a high priority for the PLA as it tries to modernize and incorporate warfighting concepts--augmenting its capability to fight local, high- intensity, short-duration conflicts in a high-technology environment. III. RESOURCES FOR FORCE MODERNIZATION Defense Budget In March 2004, China announced that a real increase of 11.6 percent ($2.6 billion) to its 2004 defense budget, bringing the total to $25 billion. The 2003-4 defense increase reflects Beijing’s sustained commitment to PLA modernization. However, the announced budget markedly understates actual defense-related spending and does not include major spending categories, such as weapons research and foreign weapon purchases. In addition, the PLA receives funding or bartered material from a multitude of sources at every level of government. It also avoids some support costs by using soldiers to grow food and produce materiel. It even subcontracts soldiers out for public and private projects. DoD estimated total defense-related expenditures for 2003, counting the large but difficult-to-calculate off-budget financing, could be between $50 billion and $70 billion, making China the third largest defense spender in the world, after the United States and Russia, and by far the largest defense spender in Asia followed by Japan. (figure 1). 0 10 20 30 40 50 60 70 80 1990 1992 1994 1996 1998 2000 2002 Public Budget Low Estimate High Estimate Billions 2003 $s Figure 1. Comparison of Public Budget and Estimated Total Defense-Related Expenditures Additional near double-digit budge t increases are likely in the midterm to underwrite escalating personnel costs, to fund PLA modernization and downsizing, and to offset funding losses from divested PLA commercial enterprises. However, a lack of detailed and consistent information makes accurately tracking total defense-related spending impossible. Furthermore, there is little information, with any confidence, indicating specific allocations by service or resource category, to include research and development (R&D), procurement, construction, and personnel. China’s December 2002 Defense White Paper (the latest version published), despite official claims that it reflects increased transparency, reveals little about the PLA’s budget. While Beijing’s White Paper does provide a breakout of the official defense budget, it does so in poorly defined resource categories, such as personnel expenses (33 percent), maintenance of activities (34 percent), and costs of equipment (32 percent), which provide little insight into how much funding actually is allocated to each service or military mission. Projecting China’s defense spending over a long period is problematic, especially because total defense spending is not adequately reported or defined. However, overlaying commercially available estimates of anticipated economic growth with DoD military spending estimates defines somewhat the boundaries of future defense expenditures. With this method, annual defense spending could increase in real terms three- four fold by 2025 (figure 2). 0 5 0 1 0 0 1 5 0 2 0 0 2 5 0 3 0 0 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 H i g h E s t i m a t e M i d E s t i m a t e L o w E s t i m a t e B i l l i o n 2 0 0 3 $ s H i g h MID L o w Figure 2. Estimated Chinese Defense Expenditure Projections Domestic Defense Industry Overview Self-sufficiency will continue to be China’s long-term defense industrial goal. Beijing plans to infuse increasingly advanced technology into the defense industry, hoping to achieve weapon quality levels approaching those in the industrially developed world within the next 5 to 10 years. Chinese defense industries have taken near-term steps to address deficiencies, but Beijing realizes long-term modernization will take time and entail a variety of measures, to include imports of foreign equipment, technology, and expertise; cooperative research, development, and production efforts; domestic research initiatives; and facility expansion and modernization. Defense Industry Highlights Beijing has active domestic production programs in all major military- industrial sectors, and China currently produces a wide variety of military equipment, including missiles, fighter aircraft, bombers, destroyers, frigates, submarines, tanks, and armored personnel carriers. However, many programs rely on foreign suppliers for critical components, such as engines for its fighters, for much of the domestically produced equipment. Also, China has an extensive and well-established ballistic missile industrial infrastructure and has developed and produced a wide variety of land- and sea-based ballistic missiles. China is concentrating on replacing liquid-propellant missiles with mobile solidpropellant ones, reflecting concerns for survivability, maintenance, and reliability, and is developing high-priority land-attack cruise missiles for theater and strategic missions. In addition, China produces several types of land-, sea-, and air-launched cruise missiles, mostly for short-range and anti-ship operations. Beijing continues to pursue a wide variety of domestic military aircraft programs. In addition to fighter and bomber production, China is developing special purpose aircraft, including aerial refueling tankers, airborne early warning and collection aircraft, and electronic countermeasure platforms. While difficulty in producing turbofan engines has hampered the Chinese aviation industry for years, there are signs of advancement. Progress has been made on developing the WS10A, the turbofan engine for the F-10-- recent testing reportedly has attained the standard of the Russian AL-31F. In recent years, the PLAN’s maritime mission has evolved from a static coastal defense into that of an “active offshore defense.” This change in operations requires newer, more modern warships and submarines capable of operating out to the Ryukyu Islands and into the South China Sea. China has active surface combatant, submarine, and amphibious construction programs, with several vessels currently under constructio n, and plans for additional units. One of the top priorities for the PLAN during the 10th Five-Year Plan is manufacture of submarines. China's ground force modernization focuses on producing more advanced tanks, upgrading older models, and continuing extensive development efforts on nextgeneration models. China is designing a next-generation infantry fighting vehicle incorporating the upgraded version of Russian BMP-3 turret technologies (including the fire-control system). Reportedly, a prototype vehicle is undergoing testing. China also is looking into upgrading older Type 69 main battle tanks with new fire-control systems, engines, turrets, and explosive reactive armor. Future Trends The PLA domestic production programs will focus future modernization efforts on incremental improvements in fire-support, armor, C4ISR, logistics, denial and deception, and air defense. Developing and fielding new missile, advanced air, and naval systems as well as fielding ground force equipment, to include self-propelled artillery and air defense systems, will improve overall capabilities and mobility and survivability on the battlefield. Fielding and integrating C4ISR systems and fielding satellite communications at lower echelons will improve the potential for battlespace management among the services. Improvements in camouflage and use of decoys also will enhance battlefield survivability. China’s Access to Foreign Technology and Weapon Systems Overview China relies heavily on former Soviet Union (FSU) governments for access to modern weapons, materials, and technical support to achieve strategic goals established under the 10th Five-Year Plan (2001-05) defense modernization program. However, as this program approaches completion, Beijing may experience proble ms in meeting some of its modernization goals, with actual deliveries falling about 27 percent in 2003 and new agreements off by about two-thirds over 2002 levels. China’s arms imports now are experiencing a moderate decline, which most likely results from a surge in imports in recent years coupled with the PLA’s difficulty in integrating modern weapons into a force comprising mostly1960s technology. However, the reduction in deliveries could be part of a calculated strategy to integrate these new weapons before proceeding with additional purchases. Historically, China appears to slow defense spending subsequent to an aggressive buying spree to absorb the influx of new equipment, ensure that all new products meet its defense needs, validate the functionality of the equipment, secure force infrastructure integration, and adequately train personnel to operate the new equipment. FSU Arms Sales and Technology Transfers to China Since 1991 Arms agreements between China and FSU governments since 1991 total $20 billion, with actual deliveries to date estimated at $12 billion. Russia, Ukraine, and Belarus appear to be China’s chief sources of weapons and materiel, reportedly providing in excess of 95 percent of all China’s arms imports since 1990. Among FSU governments, Russia clearly is China’s largest arms supplier, accounting for over 90 percent of all FSU arms sold to China over the past decade. In 2003, China’s primary focus was aerospace buildup, spending more than $1 billion dollars on 24 Russian advanced fighter aircraft alone. The Sino-Russian military trade relationship has been extensive, with China purchasing advanced Russian weapon systems for its military forces, weapon components for its domestic production programs, and military technology for its weapon development programs. Beijing’s purchase of advanced Russian weapon systems available for export has included Su-27 and Su-30 fighter aircraft; AA-12 air-to-air missiles; SA-10, SA-15, and SA-20 surface-to-air missiles; 3M-54E Novator Alpha antiship cruise missiles; KILO submarines; SOVREMENNYY destroyers; and associated weapon systems. China also relies on key Russian components for several of its weapon production programs and, in some cases, has purchased production rights to Russian weapon systems. For example, China assembles Su-27 fighters from Russian kits and eventually is expected to fabricate major components for the aircraft. In addition to weapon components, Russia continues to cooperate with China for technical, design, and material support for numerous weapon and space systems. Ukraine ranks as the second-largest FSU arms supplier to China; however, signed arms contracts between Kiev and Beijing total about $300 million, accounting for less than 2 percent of China’s arms purchases during this period. Ukraine’s arms sales to China reportedly have consisted primarily of weapon system components and equipment to support China’s aircraft and missile programs. For example, Ukraine is reported to have sold aircraft engines for use on China’s K-8 jet trainer. While Belarus is not a major arms supplier, Minsk has contracts with Beijing to provide equipment and technical support. Since the breakup of the Soviet Union, Minsk reportedly has signed contracts with Beijing valued at about $225 million, most earmarked for equipment, technical assistance, and technology to support development of China’s various missile systems. Uzbekistan is a minor Chinese arms supplier. Since 1990, Tashkent has signed arms agreements with Beijing valued at some $100 million, accounting for less than 1 percent of China’s arms agreements, reportedly involving primarily the sale of the Il- 76/CANDID transport aircraft. Figure 3. FSU Arms Transfers to China, 1991-2002 (in $ billions). China has signed arms agreements with FSU states worth about $20 billion and has taken delivery from these states of about $12 billion in weapons and materiel since 1991. Drivers in China’s Weapon Acquisition Strategy and Indicators for Future Cooperation In addition to maintaining potential suppliers of major weapon systems, modern electronics, communications, and other advanced technologies for incorporation into its own weapon programs, Beijing uses arms trade as an avenue to strengthen political alliances with Russia and its other FSU partners. From 1999 to 2003, Beijing entered into several major new weapon negotiations with Moscow, suggesting China will continue to rely on Russia as its primary source of modern military weapons and advanced technology. China pursues a two-track weapon acquisition strategy to satisfy both long- and shortterm military requirements; Russia figures prominently in both tracks. In the first track, $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Agreements Deliveries |