Full Text: China´s National Defense in 2006

Logistical Support

To ensure the cost-effectiveness of logistical support, the PLA is enhancing the management and reform of logistical support in an effort to build a modern logistics system.

Upgrading logistics management. The PLA is speeding up the formulation of logistical rules, regulations and standards to establish a standardized system covering supply, consumption and management. During the period of the Tenth Five-Year Plan for National Economic and Social Development (2001-2005) (hereinafter referred to as the Tenth Five-Year Plan), the PLA conducted a comprehensive review of its logistical regulations and standards. Over 200 standards were adopted or revised, and more than 240 regulations were enacted. During the period of the Eleventh Five-Year Plan for National Economic and Social Development (2006-2010) (hereinafter referred to as the Eleventh Five-Year Plan), the PLA is giving priority to standardizing logistical supply and establishing a mechanism for the dynamic adjustment of supply and support standards. It is strengthening the management of logistics and ensuring the overall sound implementation of the military budget. In addition, it is enforcing financial and economic discipline through strict auditing supervision.

Improving the material life conditions of the officers and men. The PLA has adopted the practice of serving separate portions of food to improve hygienic conditions. Some organic battalions have begun to provide battalion-based food service. Board expenses of enlisted men have been increased substantially since January 1, 2005, and now the food supply for officers and men aims at providing sufficient nutrition rather than just serving enough food. From July 1, 2006, the salaries for service people have been increased by a wide margin. The PLA has issued new types of uniforms to the enlisted and Air Force officers and men, new types of special-purpose fatigue clothing to troops other than those of the Army, and new types of plateau cold-proof uniforms to some troops stationed in Xinjiang and Tibet.

Steadily advancing logistics reform. Adhering to the principles of the incorporation of tri-service components into joint logistical organs, joint management and employment of support entities, and unified organization of supply and support, the PLA is conducting experimental reforms in joint logistics in the Ji'nan Theatre. This marks an important step towards the goal of building an integrated tri-service logistical support system. It involves comprehensive efforts to expand the reform of the centralized payment system to establish a support mode of fund settlement with single financial accounts as the basis and centralized payment as the main form. The reform of the military medical support system is being smoothly carried out, with priority given to ensuring the medical care of military personnel. Over 70 percent of the PLA's employees are covered by the social medical insurance system. The housing system reform has made progress, and a housing system for military personnel has taken shape which combines military support with social support, government houses with self-owned houses, and supply in kind with supply in money.

In October 2004, the General Staff Headquarters, General Political Department and General Logistics Department jointly issued the Circular on Further Promoting the Reform of Military Materials Procurement under the Corps Level. The PLA has basically established a three-level (logistical organs of the general headquarters/departments, major units, and units) materials procurement and management system and a system of centralized procurement. During the Tenth Five-Year Plan period, the PLA's centralized procurement reached RMB 45 billion, enabling it to save RMB 3.15 billion and spend 7 percent less on average.