Cover -- Preface -- Figures -- Tables -- Summary -- Acknowledgments -- Chapter One - Introduction -- The Changing Shape of China's Defense-IndustrialComplex, 1980-1998 -- Explaining the Defense Industry's Poor Performance -- Weaknesses of Past Reforms -- Understanding "the Soviet Paradox" -- New Progress in Defense-Industry Reform: The 1998Reforms and Beyond -- Beijing's "Grand Strategy" for Improving Defense-IndustrialCapabilities -- The Goals of the 1998-1999 Reforms -- Specific Organizational Reforms -- Systemic Constraints on China's Defense-Industry Reform -- Reform Imperatives Versus Social Stability -- GAD Versus State COSTIND -- Localization Versus Free-Market Practices -- Organization of This Report -- Chapter Two - China's Missile Industry -- Sector Organization and Principal Actors -- China Aerospace Science and Technology Corporation -- China Aerospace Science and Industry Group Corporation -- Non-CASC/CASIC Missile Producers -- Assessing the Potential for Future Progress -- Human and Financial Resources -- Access to Foreign Technology -- Incentives -- Institutions -- Missile-Industry Production Capabilities and Output -- Ballistic Missiles: Strengths and Weaknesses in R&D and ProductionCapabilities -- Anti-Ship Cruise Missiles -- Surface-to-Air Missiles -- Air-to-Air Missiles -- Ground-Attack Missiles -- Summary -- Improving the Performance of China's Missile Sector -- Perceived Problems and Shortcomings -- Strategies for Addressing Weaknesses -- Effectiveness of Policy Solutions -- Conclusions -- Chapter Three - China's Shipbuilding Industry -- Key Measures Used to Assess China's ShipbuildingCapabilities -- Structure and Operation of China's Shipbuilding Industry -- China State Shipbuilding Corporation12 (CSSC -- Zhongguo ChuanboGongye Jituan Gongsi) -- China Shipbuilding Industry Corporation (CSIC.

Zhongguo ChuanboZhonggong Jituan Gongsi) -- Military Shipbuilding -- Growth, Expansion, and Modernization of China'sShipbuilding Industry -- Weaknesses and Limitations of China's Shipbuilding Industry -- China's Shipbuilding Industry and Naval Modernization -- Civilian Contributions to Current Naval-ModernizationEfforts -- Improved Production Capabilities -- Increased Production Capacity -- Conclusions -- Chapter Four - China's Military-Aviation Industry -- Overview of China's Military-Aviation Sector -- Current R&D and Production Capabilities -- Fighters -- Bombers and Ground-Attack Aircraft -- Transports -- Helicopters -- Engines -- Efforts to Improve the Performance of China'sMilitary-Aviation Sector -- Future Prospects for China's Aviation Industry -- Manufacturing Technology -- Human Resources -- Financial Resources -- Economic Environment -- Competition -- Capital Markets, Technology Markets, Labor Markets -- Ownership and Funding Sources -- Institutional Infrastructure -- Conclusions -- Future Directions and Challenges -- Chapter Five - "The Digital Triangle": A New Defense-Industrial Paradigm? -- The IT Sector and Chinese Defense Modernization: TheNew Paradigm -- Relationship Between Information Technology and DefenseModernization -- The IT Sector as a Defense-Industrial Sector? -- Dynamics of the IT Industry Structure -- The Digital Triangle: A New Model of DefenseProcurement -- Strategy and Policy -- Role of Foreign Companies, Capital, and Technology -- Overall Implications of the Digital Triangle -- Implications for Other Defense-Industrial Sectors -- Implications for Chinese Military Modernization -- Chapter Six - Conclusions: Future Prospects of China's Defense Industry -- Current R&D and Production Activities Must Be ExaminedSector by Sector -- Four Factors Explain Progress in China's Defense Industry.

There Are Indicators of Future Improvements in Defense-Industry Operations -- Bibliography.