Myths, Realities of China's Military-Civil Fusion

In U.S. policy debates on China, military-civil fusion (MCF) has emerged as a frequent subject of debate and concern. Once a niche topic of study among only avid watchers of Chinese military modernization and defense technological development, Beijing’s drive to break down barriers and create stronger linkages between its civilian economy and defense industrial base has started to draw considerable attention in Washington.¹ During Donald Trump’s administration, Vice President Mike Pence, Secretary of State Mike Pompeo, senior officials across the State Department and Defense Department, and members of Congress all devoted time to MCF in speeches, using it to justify a broad range of policies. These included expanding investigations into intellectual property theft, banning Huawei from U.S. networks and critical infrastructure, urging companies like Microsoft and Google to stop working with Chinese counterparts, and even advocating for “decoupling” from the People’s Republic of China (PRC), such as in supply chains and by limiting technological collaboration.² MCF has emerged as a key analytic driver of the intensifying economic and technological competition between the United States and the PRC in recent years. While Joe Biden’s administration will have an opportunity to reset the tone of the U.S.-China relationship and recalibrate the use of instruments of U.S. policy, China’s model of MCF is likely to remain a major concern for U.S. policymakers.