China allows private investment in defence sector

Beijing, July 19 (IANS) China has pledged to open its defence-related industries to private capital in a "fair and safe manner", according to an investment guideline unveiled by the government Thursday.

Private investors and state-owned military enterprises will receive equal treatment in areas of licensing and taxation, the China Daily reported citing the guideline jointly created by the government's defence industry supervisor and the General Armament Department of the People's Liberation Army.

The guideline pledged to boost supervision in the investment in order to safeguard national security.

It will, however, be only applied to private investors in China.