China's scientific and technological industry for national defense sped up structural adjustment in 2004. It stepped up the innovation of system and mechanism and achieved important results in the development and production of armament. Military industry kept a rapid and sound economic growth. Civil products of the military industry developed with a strong momentum.

All ten major military industrial groups realized profits

The scientific and technological industry for national defense was once the most troubled industry among state-owned enterprises. After years' effort the military industry economy developed rapidly. The quality and performance of its operation was raised considerably. Its total revenue, industrial added value and product sales in 2004 increased by 21.7 percent, 26.8 percent and 26.4 percent respectively year on year. The objectives set for development at the beginning of the year have been achieved in a comprehensive way. The ten major military industrial groups realized profits for the second consecutive year. The overall economic growth of the military industry was 10 percentage points faster than that of China's industries of scale and kept a rapid growth four years in a row.

Weapon development and key projects made progress

The research and production of high-tech weaponry made important achievements in 2004. The designs of a raft of new equipment have finalized. The R&D of many models has made important progress. Various kinds of equipment have been approved for production, thereby considerably increasing the combat capabilities of the military.

The lunar orbiter project has been started in full swing in 2004 and the project as a whole is progressing smoothly. Comprehensive demonstration work on key projects such as the second and third phase moon probe projects, large aircrafts and the mega-kilowatt pressured water reactor has been unfolded, which has laid foundation for early breakthroughs in key areas.

Civil products of the military industry saw new development in 2004 and military industry for civil use developed rapidly. The proportion of civil products of the military industry with high technology has increased remarkably. The military industry system realized an annual civil product sale of 167.6 billion yuan, increasing by 26 percent year on year.

Shipbuilding industry witnessed strong development and realized an annual tonnage of 8.55 million. It scaled a new height after reaching 4.17 million tons and 6.41 million tons respectively in 2002 and 2003.

Qinshan second phase 2# unit was put to commercial operation. Nine units of Qinshan, Dayawan and Ling'ao nuclear power bases operated safely and steadily. Their installed capacities have reached 7 million kilowatts generating 50.5 billion kilowatts annually increasing by 15.1 percent year on year. Preparation work on Qinshan second phase project, Ling'ao nuclear power station expansion project and Zhejiang Sanmen, Guangdong Yangjiang nuclear power station has been officially started.

The aerospace system successfully fulfilled the task of launching eight rockets and ten satellites. The Changzheng carrier rocket series has been successfully launched 41 times in a row since October 1996. Satellite application continues to make growing contribution to economic construction. Traditional backbone products of the military industry such as automobiles and motorcycles kept a growth trend amongst the fierce market competition. Military industrial units sold 838,000 automobiles in 2004. The sale of motorcycles reached 3.66 million increasing by 27 percent.

Opening-up cooperation saw substantial achievements

China's scientific and technological industry for national defense made marked achievements in exploring international market and international exchange and cooperation in 2004. After the Chashma nuclear power plant first phase project that was exported to Pakistan was successfully brought into the grid and generated electricity China Nuclear Engineering and Construction Corporation signed the second phase project contract with the Pakistani side. Cooperation between China and Russia made marked progress in terms of substantial projects. China and Europe cooperated in launching the Double Star Program, which is the first time China has participated in international cooperation with its own space probe program.

By People's Daily Online