(Apr. 2, 2008) On March 6, 2008, the State Council and the Central Military Commission issued the Regulations on Administration of Licensing for Weapons Research and Manufacture (Wuqi zhuangbei keyan shengchan xuke guanli tiaoli), which became effective on April 1, 2008. The Regulations' five chapters include general provisions, licensing procedures, administration of preservation of secrets, legal responsibility, and supplementary provisions.
The Regulations stipulate that the state will exercise licensing control over weapons research and manufacturing activities listed in a catalog on licenses for such activities, with the exception of certain specialized activities. The catalog will be formulated and adjusted by the departments in charge of national defense science and technology industry of the State Council in consultation with the General Preparedness Department of the People's Liberation Army and the departments in charge of the military industry electronics trade; in carrying out this task, they should seek the views of the relevant departments of the State Council and of the armed forces. Control is to be exercised according to principles of "unified planning with due consideration of all factors concerned, rational distribution, encouragement of competition, and secure protection of secrets." Work units that obtained a weapons research and manufacturing license should sign a statement of responsibility for job confidentiality with state secrets personnel who bear weapons research and manufacturing duties, making explicit their responsibility for confidentiality on the job and also addressing their carrying out of regular secrets' protection education and training.
The Regulations provide that those who counterfeit or alter weapons research and production licenses will be ordered to cease the illegal acts and be fined 100,000 yuan (about US$14,200); those who have made illegal proceeds will have them confiscated (art. 31). Those who obtain a license by improper means such as deceit or bribery will be subject to a fine of from 50,000 to 200,000 yuan as well as prescribed punishment under the relevant provisions of the Administrative Licensing Law of the PRC (art. 32). (Guowuyaun Ling di 521 hao: Wuqi zhuangbei keyan shengchan xuke guanli tiaoli [State Council Decree no. 521: Regulations on administration of licensing of weapons research and manufacture], XINHUANET, Mar. 13, 2008; Xinhua she shouquan fabu <Wuqi zhuangbei keyan shengchan xuke guanli tiaoli > [Xinhua News Agency authorized to issue <The Regulations on administration of licensing of weapons research and manufacture>], XINHUANET, Mar. 13, 2008.)