China's National Defense in 2010

VII. Science, Technology and Industry for National Defense

China has established and is striving to optimize those research and production systems for weaponry and equipment which cater to both military and civilian needs and sustain military potential in civilian capabilities. It furthers reform and development and raises the capacity of research and production in promoting advanced defense-related science, technology and industry.

Reform and Development of Science, Technology and Industry for National Defense

Defense-related industries have actively transformed their development model. Through restructuring, optimizing and upgrading, and by taking energy conservation and emission reduction measures, they have coped effectively with the international financial crisis. A legal and regulatory system has been established to improve the capabilities of defense-related industries as well as the supervision over and management of their key installations and facilities. Defense-related industries have achieved steady and relatively rapid growth.

Defense-related enterprises and institutions are regulated and guided to make use of civilian industrial capabilities and social capital to conduct research into and production of weaponry and equipment. In 2010, based on the Regulations on the Licensing Administration of Weaponry and Equipment Research and Production, the Ministry of Industry and Information Technology and the PLA's General Armaments Department jointly issued the Implementation Measures for the Licensing of Weaponry and Equipment Research and Production to further regulate the participation of different types of economic bodies in scientific research into and production of weaponry and equipment and in tendering for relevant projects. Civilian industrial enterprises licensed for the scientific research into and production of weaponry and equipment now make up two-thirds of the total licensed enterprises and institutions. The Guiding Catalogue of Fields for Social Investment in Defense-related Science, Technology and Industry has been issued to promote diversity in investors in defense-related enterprises.

Improvement of Scientific Research and Production Capabilities for Weaponry and Equipment

Advanced core competence of defense-related industries has been built. Science, technology and industry for national defense have achieved the goals set in the Eleventh Five-Year Plan (2006-2010). A number of high-level research platforms and new equipment production lines have been built. Resources involved in R&D, design and simulation, processing and manufacturing, and experimentation and testing have been further modernized to ensure the fulfillment of research and production tasks, and the realization of mutual promotion and coordinated development between the R&D and production of model weaponry and equipment and the consolidation of fundamental capabilities.

Capabilities in independent innovation have been strengthened. Defense-related enterprises and institutions, institutes for basic research and institutions of higher learning are encouraged to make innovations in defense-related science and technology and to strengthen both basic and applied research. Exploration, innovation and the application of new theories, technologies and processing techniques have been accelerated. The development of advanced industrial technologies has been encouraged. Digital and information technologies have been widely used. The technological level and innovative capability of scientific research into and production of weaponry and equipment have been raised. To create a favorable environment for innovation, incentive policies and appraisal systems for original innovation have been introduced to build a better contingent of creative and talented people and to provide them with the motivation and initiative to produce scientific and technological innovations. Great importance has been given to the filing, application and protection of intellectual property rights related to science, technology and industry for national defense. In 2009, dozens of innovations won National Technology Invention Awards or National Science and Technology Progress Awards.

The basic capabilities of weaponry and equipment research and production have been enhanced. The construction, operation and management of defense-related technological infrastructure have all been reinforced. National defense science and technology labs as well as research and application centers for advanced technologies have been playing a vital role in both basic and applied research. A long-term mechanism for quality control has been established to reinforce quality supervision, resulting in a steady improvement in the overall quality of products. Technological infrastructure for the defense industry, such as standards and measurements, has been established to provide better support capabilities to weaponry and equipment research and production.

Peaceful Use of Defense Industrial Technology

The application of defense-related technologies has been accelerated in line with key fields and projects decided by the state. With breakthroughs in vital technologies and industrialization, burgeoning industries with strategic significance, and other defense-related high-tech industries in the fields of aeronautics and space, electronic information, special technologies and equipment, new energy and high efficiency power, and energy conservation and environmental protection have been developed to foster new economic engines in revitalizing national industries and restructuring new and high-tech industries.

Great importance has been attached to the peaceful use and development of nuclear energy and space technology. The industrial policy of actively exploiting nuclear energy has been formulated and issued, which has effectively secured the growth of the industries of nuclear power, nuclear fuel recycling, and nuclear technology application. Positive progress has been achieved in the export of aerospace products. China has successfully developed and launched a communications satellite for Venezuela and signed agreements or contracts on cooperation in the field of communications satellites with some countries.

Participation in International Exchanges and Cooperation

Cooperation with foreign countries in defense-related science, technology and industry has been conducted on an equal, mutually beneficial, and win-win basis. Cooperation in defense technology with friendly countries has been promoted, and mechanisms for inter-governmental commissions with some friendly countries involving defense industries and technologies have been established. Defense-related enterprises and institutions are encouraged and supported to engage in international exchanges and cooperation. Such defense industrial and technological cooperation as joint R&D, and production and personnel training are conducted with foreign countries.

The Chinese government strictly fulfils its international obligations, commitments and relevant resolutions of the Security Council of the UN on sanctions. In conformity with international conventions and standards, it has established a sound non-proliferation regime at the three levels of government, corporation and export enterprise, taking a prudent attitude towards the export of military products and related technologies. Following the principles of serving the purpose of helping the recipient state enhance its capability for legitimate self-defense, not impairing the peace, security and stability of the relevant region or the world as a whole, and not interfering in the recipient state's internal affairs, China sets up a franchising system for the enterprises permitted to export military products, practices a licensing system for military product export, and strictly abides by its policies and laws on non-proliferation.

Attaching great importance to international cooperation in the field of nuclear energy, the Chinese government has reached inter-governmental agreements with 23 countries on peaceful use of nuclear energy, introduced advanced nuclear energy technologies into China, and provided every possible assistance to developing countries. In April 2009, organized by the International Atomic Energy Agency (IAEA) and hosted by the Chinese government, the International Ministerial Conference on Nuclear Energy in the 21st Century was held in Beijing.

In accordance with the principle of peaceful use of outer space, China has conducted bilateral cooperation and exchanges with Russia, France, Brazil, Ukraine, the United States and the European Space Agency (ESA) in the fields of space technology, space exploration and space science. It supports the work of the United Nations Committee on the Peaceful Uses of Outer Space (COPUOS) and Asia-Pacific Space Cooperation Organization (APSCO), and plays an active role in making use of outer space technologies to conduct multilateral cooperation in Earth science research, disaster prevention and reduction, deep space exploration, and space debris mitigation and protection.

VIII. Defense Expenditure

China adheres to the principle of coordinated development of national defense and economy. In line with the demands of national defense and economic development, China decides on the size of defense expenditure in an appropriate way, and manages and uses its defense funds in accordance with the law.

With the development of national economy and society, the increase of China's defense expenditure has been kept at a reasonable and appropriate level. China's GDP was RMB31,404.5 billion in 2008 and RMB34,090.3 billion in 2009. State financial expenditure was RMB6,259.266 billion in 2008 and RMB7,629.993 billion in 2009, up 25.7 percent and 21.9 percent respectively over the previous year. China's defense expenditure was RMB417.876 billion in 2008 and RMB495.11 billion in 2009, up 17.5 percent and 18.5 percent respectively over the previous year. In recent years, the share of China's annual defense expenditure in its GDP has remained relatively steady, while that in overall state financial expenditure has been moderately decreased.

China's defense expenditure mainly comprises expenses for personnel, training and maintenance, and equipment, with each accounting for roughly one third of the total. Personnel expenses mainly cover salaries, allowances, housing, insurance, food, bedding and clothing for officers, non-ranking officers, enlisted men and contracted civilians. Training and maintenance expenses mainly cover troop training, institutional education, construction and maintenance of installations and facilities, and other expenses on routine consumables. Equipment expenses mainly cover R&D, experimentation, procurement, maintenance, transportation and storage of weaponry and equipment. Defense expenditure covers costs to support the active forces, reserve forces, and militia. It also covers part of the costs to support retired servicemen, servicemen's spouses, and education of servicemen's children, as well as national and local economic development and other social expenses.

(Table 1: China's Defense Expenditure in 2009)

In the past two years, the increase in China's defense expenditure has primarily been used for the following purposes: (1) Improving support conditions for the troops: Along with the economic and social development and the improvement of people's living standards, the PLA has adjusted servicemen's salaries and allowances, increased funding for education and training, water and electricity supplies and heating, upgraded logistics support for grass-roots units in a comprehensive and coordinated way, and improved the on-duty, training and living conditions of border and coastal defense forces and units in remote areas and harsh environments. (2) Accomplishing diversified military tasks: China has increased investment in improving MOOTW capabilities, in supporting earthquake rescue and disaster relief operations, in escort operations in the Gulf of Aden and waters off Somalia, in flood control and emergency rescue operations, and in international rescue operations. (3) Pushing forward the Revolution in Military Affairs (RMA) with Chinese characteristics. In view of the upward trend in purchasing prices and maintenance costs, China has moderately increased the funds for high-tech weaponry and equipment and their supporting facilities.

In 2010, confronted by the residual impact of the global financial crisis and other uncertainties, the tension between revenue and expenditure in China's finances persists. Giving priority to socially beneficial spending in agriculture, rural areas and farmers, as well as in education, science and technology, health, medical care and social security, China has increased its defense expenditure moderately as needed. China's defense budget for 2010 is RMB532.115 billion, up 7.5 percent over 2009. The growth rate of defense expenditure has decreased.

(Chart 1: Share of China's Annual Defense Expenditure in the State Financial Expenditure)

China practices a strict system of financial supervision of defense funds. The annual defense budget is incorporated into the annual financial budget draft of the central government, and then submitted to the NPC for review and approval. The auditing offices of the state and the PLA conduct audit and supervision of the defense budget and its enforcement. In recent years, the Chinese government has strengthened systematic and meticulous management of defense expenditure, reformed and innovated financial management systems, pressed forward with reforms in asset management, reinforced budget implementation, supervision and management, and organized auditing of economic responsibilities of military leaders and special auditing of the use of funds and materials. In this way, transparency and standardization of defense expenditure are enhanced, and the proper and effective use of defense funds is ensured.

IX. Military Confidence-Building

Military confidence-building is an effective way to maintain national security and development, and safeguard regional peace and stability. With political mutual trust as the groundwork and common security as the goal, China is promoting the establishment of equal, mutually beneficial and effective mechanisms for military confidence-building, which should be based on the principles of holding consultations on an equal footing, mutual respect for core interests and recognition of major security concerns, not targeting at any third country, and not threatening or harming other countries' security and stability.

Strategic Consultations and Dialogues

In recent years, China has held extensive strategic consultations and dialogues with relevant countries in the field of security and defense to enhance mutual understanding and trust, and to strengthen communication and coordination. To date, China has established mechanisms for defense and security consultation and dialogue with 22 countries.

The strategic and cooperative partnership between Russia and China continues to be comprehensively and vigorously reinforced. The two militaries established a strategic consultation mechanism in 1997. The 13th round of strategic consultations between the two general staff headquarters in 2010 resulted in consensus on the international strategic situation, issues in Northeast Asia, Central Asia and South Asia, and cooperation between the two militaries.

China and the United States maintain consultations on such issues as non-proliferation, counter-terrorism, and bilateral military and security cooperation. The two countries established a mechanism of defense consultation between the two defense ministries in 1997, and held the tenth and 11th Defense Consultative Talks (DCT) on issues of common concern in June 2009 and December 2010, and the fifth and the sixth Defense Policy Coordination Talks (DPCT) in February and December 2009.

China attaches great importance to defense and security consultations with neighboring countries. It has established mechanisms for defense and security consultation and policy dialogue with neighboring countries, including Mongolia, Japan, Vietnam, the Philippines, Indonesia, Thailand, Singapore, India and Pakistan, and has held regular consultations and dialogues at different levels with its neighbors, which focus on Asia-Pacific security, bilateral military relations and regional flashpoint issues. Such consultations and dialogues play a positive role in promoting mutual understanding, consolidating good neighborliness and friendship, deepening mutual trust and cooperation, and maintaining regional peace and stability.

China has conducted extensive strategic consultations and dialogues with other countries. In September 2009, the two militaries of China and Germany held the fourth round of defense strategic consultations. In October 2009, the two militaries of China and Australia held the 12th defense strategic consultations. In March 2009 and June 2010, China and New Zealand held the second and third strategic dialogues. In February 2010, military deputies of China and the United Kingdom held defense strategic consultations. In November 2010, China and South Africa held the fourth defense commission meeting. China has also established mechanisms for defense (cooperation) commission meetings with Egypt, for high-level military cooperation dialogue with Turkey, and for defense consultations with the United Arab Emirates, all of which have broadened defense exchanges between China and Middle Eastern countries.

Border Area Confidence-Building Measures

China consistently pursues a foreign policy of building an amicable relationship and partnership with its neighbors, attaches great importance to border area confidence-building measures, strengthens friendly military exchanges in border areas, and actively prevents dangerous military activities, all of which have helped preserve peace and stability on the borders.

In September 1993, China and India signed the Agreement on the Maintenance of Peace and Tranquility Along the Line of Actual Control in the China-India Border Areas, and in November 1996, the two countries signed the Agreement on Confidence-Building Measures in the Military Field Along the Line of Actual Control in the China-India Border Areas. In April 2005, the two countries signed the Protocol on Implementation Measures for Confidence-Building Measures in the Military Field Along the Line of Actual Control in the China-India Border Areas, agreeing on specific implementation measures for certain articles in the 1996 Agreement.

In April 1996, China, Kazakhstan, Kyrgyzstan, Russia and Tajikistan signed the Agreement on Confidence-Building in the Military Field Along the Border Areas. In April 1997, China signed the Agreement on the Mutual Reduction of Military Forces in the Border Areas with the aforementioned countries, which includes clauses on mutual reduction of combat troops and weaponry within delineated limits along China' s 7,600-km borderlines with Kazakhstan, Kyrgyzstan, Russia and Tajikistan, on the organization of annual mutual inspections, and on supervision and verification of the implementation of mutual trust measures in border areas. In December 1998, China and Bhutan signed the Sino-Bhutanese Agreement on the Maintenance of Peace and Tranquility in the Border Areas.

The PLA border defense force faithfully implements all relevant border confidence-building agreements in the military field. Since the 1990s, China's Ministry of National Defense has signed Frontier Defense Cooperation Agreement respectively with relevant departments of the Democratic People's Republic of Korea (DPRK), Russia, Mongolia, Kazakhstan, Kyrgyzstan, Myanmar and Vietnam, and established a three-level meeting mechanism between China's general headquarters/departments, military area commands (provincial military commands) and border defense units and their counterparts, to communicate border information in a timely manner and handle major border affairs through consultation. The PLA border defense force has set up along the borders more than 60 stations for border talks and meetings, and every year engages in thousands of talks and meetings with neighboring countries. In recent years, in the border areas, China has conducted military training in bilateral or multilateral border blockade and control, joint counter-terrorism, and carried out joint patrols and inspections respectively with Russia, Tajikistan, Mongolia and Pakistan.

China has signed border management system agreements with a dozen of its land neighbors to specify cooperation measures for keeping order in border areas, protecting and utilizing cross-border rivers, establishing a border area liaison system, and handling border affairs through consultation. A border representative system has been established to handle border affairs that can be settled through consultation without the need for escalation to diplomatic levels. Appointed by the government and selected from leaders of border defense units, Chinese border representatives perform their duties under the guidance of local military organs and foreign affairs departments. Border representatives exchange information regularly, guard against and handle border incidents, and provide assistance in port administration, cross-border transportation, fishery cooperation, environmental protection and disaster prevention.

Dialogues and Cooperation on Maritime Security

China takes an active part in dialogue and cooperation on international maritime security. It strictly complies with the UN Charter, the United Nations Convention on Law of the Sea (UNCLOS), and other universally recognized norms of international relations. It consistently pursues common security and development, and respects the sovereignty, rights and interests of coastal states. China perseveres in dealing with traditional and non-traditional maritime threats through cooperation, and strives to maintain maritime security through multiple peaceful ways and means.

In 1998, China and the United States concluded the Military Maritime Consultative Agreement (MMCA) and began to conduct consultations on military maritime security issues. To date, eight annual meetings, 13 working group meetings and two special meetings have been held, contributing to the safety of maritime activities, the avoidance of maritime accidents and the adoption of other confidence-building measures. An MMCA special session was held in August 2009 and an annual meeting was held in October 2010.

In October 2005, China and Vietnam signed the Agreement on Joint Patrols by the Navies of China and Vietnam in the Beibu Gulf. The two navies established the Office of Joint Patrols in the Beibu Gulf, organized ten joint patrols, and held five annual meetings. In February 2009, direct telephone links were officially established between the Chinese and ROK naval and air force troops stationed in adjacent areas. Since 2008, China and Japan have held several consultations over the establishment of a maritime liaison mechanism. The Chinese Navy has taken an active part in the activities of the Western Pacific Naval Symposium (WPNS), and in seminars on maritime security sponsored by the ASEAN Regional Forum (ARF) and the Council for Security Cooperation in the Asia Pacific (CSCAP).

In the past two years, the Chinese Navy has sent more than 20 naval ships in over ten convoys to visit more than 30 countries, and received port visits from more than 30 naval ships representing over 20 countries.

Regional Security Cooperation

A multi-tiered and composite framework of Asia-Pacific regional security cooperation is taking shape, and numerous security cooperation mechanisms have been further developed. China takes an active part in establishing security dialogue and building security mechanisms in the Asia-Pacific region, strengthens mutual political trust and security cooperation with Asia-Pacific countries, promotes military confidence-building, and endeavors to maintain regional peace and stability.

Since 2009, the Shanghai Cooperation Organization (SCO) has sustained its strong development momentum in security cooperation. Its member states have signed a succession of papers, such as the SCO Counter-Terrorism Convention, the Agreement among the Governments of the SCO Member States on Cooperation in the Field of Ensuring International Information Security, and the Agreement among the Governments of the SCO Member States on Cooperation in the Field of Combating Crime, which have laid a solid legal foundation for security cooperation. Further improvements have been made in cooperation mechanisms for security work at major international events, such as those held in 2010, including the 65th Anniversary of the Victory of World Anti-fascist War held in Moscow, the Shanghai Expo and the Guangzhou Asian Games. Joint counter-terrorism exercises continue to be formalized. Joint counter-terrorism exercises, such as the "Peace Mission" series between the militaries, and the "Norak-Anti-Terror 2009" and "Saratov-Anti-Terror 2010" initiatives between law-enforcement and security departments, have provided an effective deterrence to the three regional threats of terrorism, separatism and extremism. Regular meetings have been held between security committee secretaries, procurators-general, heads of supreme courts, defense ministers, ministers of interior affairs and public security, and other leaders of law enforcement and security agencies from the SCO member states, enhancing cooperation in justice, defense, law enforcement, security and other fields.

China actively participates in multilateral security meetings within the framework of the ARF, ASEAN Plus One (China), and ASEAN Plus Three (China, Japan and the ROK). Initiated by China, the ARF Conference on Security Policies was officially staged in 2004, and has developed into a dialogue mechanism for the highest ranking senior defense officials within the ARF framework. In May 2010, at the seventh ARF Conference on Security Policies, China proposed initiatives on strengthening research on non-traditional security cooperation and on promoting practical cooperation. In October 2010, China attended the first ASEAN Defense Ministers' Meeting Plus (ADMM+) and proposed to advance regional security dialogue and cooperation. In recent years, the PLA has hosted the China-ASEAN Defense and Security Dialogue (CADSD), the ASEAN Plus Three Forum on Non-traditional Security Cooperation between Armed Forces, and the ARF workshop on formulating legal rules for armed forces' participation in international disaster relief operations.

Since 2007, China has sent senior defense officials on an annual basis to attend the Shangri-La Dialogue held in Singapore to elaborate its national defense policy and opinions on regional security cooperation.

Military Exchanges with Other Countries

China develops its military relations with foreign countries in a comprehensive manner, continues to strengthen its practical exchanges and cooperation with the armed forces of other countries, and strives to foster a military security environment featuring mutual trust and benefit. In the last two years, senior PLA delegations have visited more than 40 countries, and defense ministers and chiefs of general staff from more than 60 countries have visited China.

The strategic mutual trust and practical cooperation between the militaries of China and Russia has been steadily enhanced. The militaries of the two sides have regularly exchanged high-level visits, signed the Missile- and Space-Launch Notification Deal, conducted cooperation in training and border defense, and held exchanges between educational institutions and air defense forces. With respect to relations between the militaries of China and the United States, two sides are still maintaining effective dialogues and communications after various ups and downs, carrying out planned exchanges in respect of structural projects, such as defense consultation, maritime military security consultation, and military filing work. Military ties between China and the European countries continue to be strengthened. China continues to consolidate traditional friendly relations with Central and Eastern European countries, increase practical exchanges with Western European countries, and explore ways to develop military ties with the NATO and the EU.

China has strengthened military relations with its neighboring countries. It conducts friendly exchanges with the DPRK and the ROK militaries, attaches importance to Sino-Japanese defense exchanges, strengthens multi-dimensional Sino-Pakistani military exchanges and cooperation, works to advance the Sino-Indian military relationship, strengthens friendly exchanges with the militaries of ASEAN countries, and promotes military exchanges with countries like Australia and New Zealand.

China conducts military exchanges with developing countries in Africa, West Asia, Latin America and the South Pacific. It increases high-level visits and exchanges between junior and intermediate officers, and seeks to broaden cooperation fields with these countries. For the first time, China sent a hospital ship, the Peace Ark, to visit the Republic of Djibouti, the Republic of Kenya, the United Republic of Tanzania, the Republic of Seychelles and other African countries and provided humanitarian medical service. Also for the first time, China hosted workshops for heads of military academies from English-speaking African countries, for directors of military hospitals from French-speaking African countries, and for intermediate and senior officers from Portuguese-speaking African countries. Additionally, China continues to host workshops for senior officers from countries in Latin America, the Caribbean and the South Pacific.

Since the establishment of the Ministry of National Defense (MND) spokesperson system in 2008, seven press conferences have been held on such themes as earthquake rescue and disaster relief, maritime escort and international humanitarian rescue, and important information has been released in a timely manner. The PLA invests greater efforts in public diplomacy, and has arranged for domestic and foreign media to visit combat units and conduct interviews. The PLA provides timely information on the building of national defense and armed forces via such platforms as the MND website.

In 2009, in celebration of the 60th anniversaries of their respective foundings, the PLAN hosted a multinational naval event on the theme of "Harmonious Ocean," and the PLAAF hosted the "International Forum on Peace and Development."

X. Arms Control and Disarmament

China attaches importance to and takes an active part in international efforts in the field of arms control, disarmament and non-proliferation. It adheres to the complete fulfillment of the UN's role in this area, and that of other related international organizations and multilateral mechanisms, and considers that existing multilateral arms control, disarmament and non-proliferation systems should be consolidated and strengthened, that the legitimate and reasonable security concerns of all countries should be respected and accommodated, and that global strategic balance and stability should be maintained.

Nuclear Disarmament

China has always stood for the complete prohibition and thorough destruction of nuclear weapons. China maintains that countries possessing the largest nuclear arsenals bear special and primary responsibility for nuclear disarmament. They should further drastically reduce their nuclear arsenals in a verifiable, irreversible and legally-binding manner, so as to create the necessary conditions for the complete elimination of nuclear weapons. When conditions are appropriate, other nuclear-weapon states should also join in multilateral negotiations on nuclear disarmament. To attain the ultimate goal of complete and thorough nuclear disarmament, the international community should develop, at an appropriate time, a viable, long-term plan with different phases, including the conclusion of a convention on the complete prohibition of nuclear weapons.

China holds that, before the complete prohibition and thorough destruction of nuclear weapons, all nuclear-weapon states should abandon any nuclear deterrence policy based on first use of nuclear weapons, make an unequivocal commitment that under no circumstances will they use or threaten to use nuclear weapons against non-nuclear-weapon states or nuclear-weapon-free zones, and negotiate an international legal instrument in this regard. In the meantime, nuclear-weapon states should negotiate and conclude a treaty on no-first-use of nuclear weapons against each other.

China has played a constructive role in the review process of the Treaty on the Non-Proliferation of Nuclear Weapons (NPT). Together with other signatories to the NPT, China is willing to sincerely implement the positive achievements of the Eighth NPT Review Conference in 2010. China supports the early entry into force of the Comprehensive Nuclear Test Ban Treaty (CTBT) and the early commencement of negotiations on the Fissile Material Cut-off Treaty (FMCT) at the Conference on Disarmament (CD) in Geneva.

As a permanent member of the UN Security Council and a nuclear-weapon state signatory of the NPT, China has never evaded its obligations in nuclear disarmament and pursues an open, transparent and responsible nuclear policy. It has adhered to the policy of no-first-use of nuclear weapons at any time and in any circumstances, and made the unequivocal commitment that under no circumstances will it use or threaten to use nuclear weapons against non-nuclear-weapon states or nuclear-weapon-free zones. China has never deployed nuclear weapons in foreign territory and has always exercised the utmost restraint in the development of nuclear weapons, and has never participated in any form of nuclear arms race, nor will it ever do so. It will limit its nuclear capabilities to the minimum level required for national security.

China has strictly abided by its commitment to a moratorium on nuclear testing and has actively participated in the work of the Preparatory Commission of the Comprehensive Nuclear Test Ban Treaty Organization, and is steadily preparing for the national implementation of the Treaty. China is responsible for setting up 12 international monitoring stations and laboratories. At present, six primary seismological monitoring stations, three radionuclide stations, the Beijing Radionuclide Laboratory and the China National Data Center have been set up, and one infrasound station is under construction.

China consistently supports the efforts of non-nuclear-weapon states in establishing nuclear-weapon-free zones, has already signed and ratified all the relevant protocols which have been opened for signature of any nuclear-weapon-free zone treaties, and has reached agreement with the ASEAN countries on relevant issues under the Protocol of the Treaty on the Southeast Asia Nuclear-Weapon-Free Zone. China supports the Treaty on a Nuclear-Weapon-Free Zone in Central Asia and its protocols signed by Central Asian countries, and supports the establishment of a nuclear-weapon-free zone in the Middle East.

China maintains that the global missile defense program will be detrimental to international strategic balance and stability, will undermine international and regional security, and will have a negative impact on the process of nuclear disarmament. China holds that no state should deploy overseas missile defense systems that have strategic missile defense capabilities or potential, or engage in any such international collaboration.

Non-Proliferation

China firmly opposes the proliferation of weapons of mass destruction (WMD) and their means of delivery, and consistently deals with non-proliferation issues in a highly responsible manner. China maintains that, in order to prevent proliferation at source, efforts should be made to foster a global and regional security environment featuring mutual trust and cooperation, and the root causes of WMD proliferation should be eliminated. It holds that non-proliferation issues should be resolved through political and diplomatic means. It holds that the authority, effectiveness and universality of the international non-proliferation regime should be upheld and enhanced. The international community should ensure fairness and prevent discrimination in international non-proliferation efforts, strike a balance between non-proliferation and the peaceful use of science and technology, and abandon double standards. China has joined all international treaties and international organizations in the field of non-proliferation, and supports the role played by the United Nations in this regard, and has conscientiously implemented any relevant resolutions of the UN Security Council.

China advocates resolving the nuclear issue in the Korean Peninsula peacefully through dialogues and consultations, endeavoring to balance common concerns through holding six-party talks in order to realize the denuclearization on the Korean Peninsula and maintain peace and stability of the Korean Peninsula and the Northeast Asia. China, always considering the whole situation in the long run, painstakingly urges related countries to have more contacts and dialogues in order to create conditions for resuming six-party talks as early as possible. China is for the peaceful resolution of the Iranian nuclear issue through dialogue and negotiation, and for maintaining the peace and stability of the Middle East. China has been dedicated to promoting dialogue and negotiation, and has actively engaged with relevant parties to promote non-proliferation. China has attended the meetings of foreign ministers and political directors of the P5+1, and has participated in the deliberations on the Iranian nuclear issue at the UN Security Council and at the International Atomic Energy Agency (IAEA) in a constructive manner.

Since 2009, China has held arms control and non-proliferation consultations with a dozen countries, including the US, Russia, the UK, Germany, Brazil, Canada, Pakistan, the Republic of Korea, the EU, Australia and Israel, and continues to strengthen dialogue and exchanges with multinational export control mechanisms. It has conducted discussions with the Missile Technology Control Regime (MTCR) and participated in its technical outreach meeting. China has cosponsored inter-sessional meetings on non-proliferation and disarmament with relevant countries within the framework of the ARF, and taken part in discussions on biological security and counter-biological terrorism.

China attaches great importance to non-proliferation export control, and has established a comprehensive legal system for export control of nuclear, biological, chemical, missile and related sensitive items and technologies, as well as all military products. It has adopted the relevant international universal export control measures, including the licensing system, end-user and end-use certificate, list control, and "catch-all" principle. In 2009, the Ministry of Commerce promulgated the Measures for Administration of Dual-use Items and Technologies Subject to Export General License to further strengthen the licensing system for export control.

China attaches great importance to the issue of nuclear security, opposes nuclear terrorism, adopts effective nuclear security measures and maintains a good record in this field. China observes in good faith its international obligations and takes an active part in international nuclear security cooperation. It agrees in principle to set up a nuclear security "Center of Excellence" in China in cooperation with relevant countries.

Prohibition of Biological and Chemical Weapons

China sincerely fulfills its obligations under the Chemical Weapons Convention (CWC) by setting up implementation offices at both central and local levels, by submitting timely complete annual declarations, through declarations subsequent to newly discovered chemical weapons abandoned by Japan in China, and through submission of the annual national protection program. China has hosted more than 240 on-site inspections by the Organization for the Prohibition of Chemical Weapons (OPCW). China cooperates closely with the OPCW. Jointly with the OPCW, China has hosted several training courses for OPCW inspectors, as well as international courses on protection and assistance. China has also provided assistance to those African states party to the Organization. With a view to facilitating Japan's role in fulfilling its obligation to destroy its chemical weapons abandoned in China, China has assisted Japan in carrying out 150 on-site investigation, excavation, recovery and identification missions, and has excavated almost 50,000 items of abandoned chemical weaponry. In October 2010, China began to destroy chemical weaponry abandoned by Japan in Nanjing. China calls on Japan to increase its input to this process and to accelerate the destruction of its chemical weapons abandoned on Chinese territory.

China supports multilateral efforts to strengthen the effectiveness of the Biological Weapons Convention (BWC) and is committed to the comprehensive and strict implementation of the Convention. China has already established a comprehensive legislation system for the implementation of the Convention and set up a national point of contact. China submits annual declarations of its confidence-building measures to the Implementation Support Unit of the Convention in a timely manner, attends Meetings of State Parties and Meetings of Experts and related seminars, strengthens bio-security and disease surveillance, and carries out international exchanges and cooperation.

Prevention of an Arms Race in Outer Space

The Chinese government has advocated from the outset the peaceful use of outer space, and opposes any weaponization of outer space and any arms race in outer space. China believes that the best way for the international community to prevent any weaponization of or arms race in outer space is to negotiate and conclude a relevant international legally-binding instrument.

In February 2008, China and Russia jointly submitted to the Conference on Disarmament (CD) a draft Treaty on the Prevention of the Placement of Weapons in Outer Space and the Threat or Use of Force against Outer Space Objects (PPWT). In August 2009, China and Russia jointly submitted their working paper responding to the questions and comments raised by the CD members on the draft treaty. China is looking forward to starting negotiations on the draft treaty at the earliest possible date, in order to conclude a new outer space treaty.

Conventional Arms Control

China has sincerely fulfilled its obligations under the Convention on Certain Conventional Weapons (CCW) and its Protocols, submitted its annual reports on the implementation of the Amended Protocol on Landmines, and actively participated in the work of the Group of Governmental Experts (GGE) on Cluster Munitions. In April 2010, China ratified the Protocol on Explosive Remnants of War.

Since 2009, China has continued to participate actively in international humanitarian de-mining assistance. It has held de-mining training courses for Afghanistan, Iraq and Sudan. China has also donated de-mining equipment to Egypt, Afghanistan, Iraq, Sudan and Sri Lanka, and provided Peru and Ethiopia with mine victim assistance.

China has actively participated in the international effort to combat the illicit trade in Small Arms and Light Weapons (SALW). It has conscientiously implemented the UN Program of Action (PoA) on SALW and the International Instrument on Identifying and Tracing Illicit SALW. It has participated in the Open-Ended Working Group (OEWG) and the first session of the Preparatory Commission of an Arms Trade Treaty. In 2010, China attended the Fourth Biannual Meeting on SALW and submitted its national report.

Transparency in Military Expenditure and Registration of Transfer of Conventional Arms

China attaches great importance to military transparency, and makes efforts to promote mutual trust with other countries in the military sphere. Since 2007, China has begun to report to the UN Standardized Instrument for Reporting Military Expenditures. China gives weight to the UN Register of Conventional Arms and continues to submit data to the Register on conventional arms transfer in the seven categories covered by the Register.