China's National Defense in 2008
III. Reform and Development of the PLA
Enhancing the Cost-Effectiveness of Logistical Support
The PLA vigorously promotes integration in logistical support system, outsourcing in logistical support method, informationization in logistical support means, and scientific approach in logistical support management, to build a modern logistics system. In December 2007 the CMC promulgated the Outline for Building a Modern Logistics System, specifying the guidelines, principles, objectives and tasks for the development of modern logistics.
Deepening logistics reform. The PLA persists in promoting reforms in joint logistics. In April 2007 the Jinan Theater formally adopted the joint logistics system based on the integration of tri-service logistical support. To speed up the outsourcing process, the PLA outsources the commercial and housing services of combat units stationed in large- and medium-sized cities, general-purpose materials storage, capital construction, logistical equipment production and logistical technical services. To enhance budgeting reforms, it promotes the creation of databases for budget items, strengthens the investment assessment and evaluation of major projects, summarizes and popularizes such practices as the integration of assets management with budget management and the control of expenses concerning administrative consumables, and gradually adopts the practice of using work-related expenditure cards for payment and account settlement. It enlarges the scope of centralized procurement, increases the proportion of procurement through bidding, and extends centralized procurement to non-combat units.
Upgrading logistical support. The PLA has substantially increased funding for education and training, political work, health care, water and electricity supplies, heating, barracks maintenance, etc. It has increased allowances for aviators, sailors and astronauts. It has increased post allowances for officers in grass-roots units and duty allowances for enlisted men. It has raised servicemen's injury and death insurance and board expenses. It has set standards for the subsidies and fees for small, scattered, distant units and units directly under the headquarters. In August 2007 all PLA troops began to replace their old uniforms with the 07 series.
Regulating logistics management. To step up standardization, the PLA is redoubling its efforts in the standardized provision of maintenance funds and centrally allocated supplies, regulating the management of construction-related supplies, and creating step by step a system of logistical support standards and regulations covering supply, consumption and management. It strengthens financial management, spends according to standards and within its budget, and carries out construction according to its financial strength. It pays close attention to the safe management of drinking water, food, medical care, medicine, petroleum, oils and lubricants, transportation and dangerous articles. It is improving the mechanism to prevent and control public health hazards; standardizing the management of military vehicles; conducting a special review of housing for active officers at and above the corps level; imposing strict management on military housing and the lease of unoccupied real estate; and improving the system for the employment of civilians. In January 2007 the CMC promulgated the newly revised Audit Regulations of the Chinese People's Liberation Army. The PLA has launched an in-depth movement to conserve energy and resources by encouraging conservation-minded supply and consumption. It protects the ecological environment of military areas by initiating a grassland conservation project, a pilot project for preventing and alleviating sand storms affecting coastal military facilities, and efforts to harness pollution by military units stationed in the area known as the Bohai Sea rim.
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