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General Armament Department

The General Armament Department, headed by a director, is responsible for production of armaments. The General Armament Department organizes and leads the army's work in military equipment.

The state exercises unified leadership and planned control over defense research and production. The State Council leads and administrates defense research and production, as well as defense expenditure and assets. The CMC approves the military equipment system of the armed forces and military equipment development plans and programs, leads and administrates defense research and production in coordination with the State Council, and manages defense outlays and assets jointly with the State Council. The state practices a state military supplies order system to guarantee the acquisition of weapons and other war materials. The state practices a financial allocation system for defense spending. It decides the size, structure and location of the defense assets and the adjustment and disposal of these assets in accordance with the needs of national defense and economic construction.

On August 18, 2000 General Cao Gangchuan, director of the General Armament Department (GAD) of the Chinese People's Liberation Army (PLA) called for the acceleration of the pace of reforming China's military industry. The industry should be restructured bringing into consideration the new situation of building a socialist market economy in the country. Cao, who is a member of the Central Military Commission, made the remarks at a workshop attended by heads of PLA bureaus in charge of dispatching army representatives to military factories across the country. He urged to build up, as early as possible, the necessary mechanisms for competition, appraisal, supervision and encouragement. In his address, the general thanked all the military representatives for their contribution to the development of the defense industry over the decades. It was the first meeting of its kind ever held since the GAD was set up in April 1998.