Chinese researchers have warned Beijing about the influence of defense contractors
Researchers at the National Institute for Strategic Studies at Shanghai Jiao Tong University have cautioned Chinese authorities against allowing defense contractors to exert excessive influence on security policy. According to the South China Morning Post, in a study published on Monday, they cited the U.S. military-industrial complex as an example of a model that Beijing should avoid.
The authors of the study stated that the American “iron triangle”—comprising the U.S. Department of Defense, private contractors, and congressional committees—has taken control of the country’s national security policy. In their view, the alliance of defense companies, the military, and politicians creates a self-reinforcing system that combines profits, budget growth, and political capital.
The study’s lead author, Gu Jianyi, a former researcher at a military institute, noted that these interests form a self-perpetuating cycle of military expansion, revenue growth, mutual benefit, and further expansion. In his assessment, this drives arms buildup regardless of external security pressures. He also identified the primary flaw of the U.S. military-industrial complex as the prioritization of capital’s pursuit of profit over national security and the public interest.
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Researchers have suggested that China more clearly delineate the responsibilities of the government, the military, and defense contractors by creating a system with defined roles, checks and balances, and transparency. At the same time, analysts noted that the main risk for China is not external influence from private capital, but internal institutional decay—specifically, the weakening of the Party’s authority and the formation of entrenched factions within the military-industrial complex.
Sun Zhongping, a former instructor in the Chinese People’s Liberation Army and a military analyst, emphasized the need for a robust legal framework and strict internal oversight mechanisms to prevent the emergence of such factions. The article also notes that, in some cases, procurement fraud led to the use of substandard materials and reduced technical reliability. In particular, the missile forces terminated nearly 200 partnerships with experts and suppliers last year.
The authors also emphasized the need for independent technological development to overcome technological limitations and ensure self-sufficient supply chains. They called for a two-way transfer of technology between the military and civilian sectors.
