China has granted permission to private enterprises and foreign-funded enterprises to participate in the development and production of weapons, according to a new policy issued Friday.

The regulations on issuing licenses for the development and production of weapons, issued by the Commission of Science, Technology and Industry for National Defense, classify weapon development and production into two categories. Business, in the first category, involves core technology and equipment, remains under tight state control. The second category, which involves sub- systems and special auxiliary products, is open to the society.

"It means if they meet certain standards, including technological level and financial strength, private and foreign- funded companies face no policy barriers to entering business in the second category," said Liu Dongkui, director of the economic coordination department of the commission.

Liu said the classification system will help to standardize the weapon development and production industry, promote moderate and orderly competition and improve the level of the national defense industry.

He disclosed the commission will issue around 300 weapon development and production licenses in the second half of this year. A few private businesses are among the candidates to be considered.

"But there's no fixed link between a license and production orders. Obtaining a license does not guarantee a company production orders," said Liu.

According to the commission, the regulations will take effect on June 15.

Source: Xinhua