China on Thursday published the "Provisions on the Management of Permit for Research and Manufacturing of Weapons and Armaments". It was jointly signed by President Hu Jintao, also the Central Military Commission chairman, and Premier Wen Jiabao.
The statute, in five articles and 43 clauses, is effective on April 1.
The government is cataloging all kinds of activities involving the study and manufacturing of weapons and armaments, exclusive of research on special weapons and armament, and will issue permission to those eligible researchers and manufacturers.
The catalog was issued by the State Council department in charge of defense science, technology and industry, the General Armament Department of the Chinese People's Liberation Army (PLA), and authorities in charge of military electronics industry. It will be readjusted periodically.
In general, those who are not on the list will not be allowed to participate in these kinds of activities, though some will be allowed to do so with permission of the State Council, China's Cabinet, and the Central Military Commission.
Eligible companies and individuals must acquire an official license, capabilities and qualifications for involvement in study and manufacturing of weapons and armaments, including the qualification for secrecy.
Those who want to apply for the official permit of studying and manufacturing weapons and armament should hand over their application to provincial-level departments in charge of defense science, technology and industry, or directly to the State Council department in charge of the sector.
The third article in the statute deals with the management of secrecy. It emphasized approved researchers and manufacturers must set up their managerial system on secrecy, with their leaders responsible for the issue. Individuals involved in these activities have to sign a responsibility statement on secrecy.
These research institutions and manufacturers must take strict measures for keeping secret and limiting the number of people directly involved in the secret job; protective facilities must be built to ensure the safety of the key departments and locations.
They are not allowed to handle, transmit and store secret data and information with equipment that is not designed for being kept secret. All relevant activities, including secret-leaking incidents, must be recorded and put into secret archives.
Those who are not in the catalogue will be punished for illegally participating in the study and manufacturing of weapons and armaments, with penalties ranging from 100 to 300 percent of the value of the illegally-manufactured products. All illegal income will be confiscated.
Eligible units who lease, lend or transfer in other means their license will pay a fine of 100,000 yuan (about 14,000 U.S. dollars), or their license could be revoked if their wrongdoing is severe. Those who use the license of others will have to pay penalties ranging from 100 to 300 percent of the value of the illegal products, and have their illegal income seized.
Those who falsify a license or obtain a license by illicit means, including fraudulence and bribery, will also be penalized. Officials in charge of the issuance of the said license will be punished for malfeasance.
Those who have had their license revoked would not be allowed to apply for a new one within three years.
(Xinhua News Agency March 14, 2008)