Over the past 20 years, China's army has become almost as formidable a force in the Chinese economy as it is in military affairs. Encouraged by Government to supplement official defense budgets with profits from army-owned businesses, the army formed into a sprawling organization that controls or owns parts of a vast array of businesses , from arms dealers to airlines, pharmaceutical makers to vegetable growers. As a result of those business activities, corruption and army-dominating smuggling have been arising in the military system as a big headache to China's top leaders.
The PLA, the Armed Police , and law-enforcement offices are no longer
to be allowed any involvement in business activities. This order was issued
by President Jiang Zemin, after the decision was reached between CPC Central
Military Commission. Vice-President Hu Jintao announced at a two-day meeting
ending Octomber 7th, 1998 about this decision.
Names and Organization
Jiang Zemin: President of People's republic of China; President
of Military Force Comittee of China; General of Chinese Comunist Party