Abstract
This chapter examines how the Chinese Communist Party leverages military-civil fusion to accelerate the development and deployment of artificial intelligence (AI) within the People’s Liberation Army (PLA). China regards AI as a strategic opportunity to surpass Western powers and to build “new-quality combat capabilities.” Following breakthroughs such as DeepSeek, Beijing significantly increased its funding and policy support for AI innovation. Current PLA applications primarily focus on intelligence fusion, smart communications, command-and-control systems, and unmanned operations, supported by major state-owned defense conglomerates and specialized AI research institutes.
To strengthen civil–military integration, China employs multiple mechanisms. National-level scientific associations—such as the Chinese Institute of Command and Control—serve as platforms linking military needs with private-sector innovation and host major defense exhibitions and wargaming competitions. The PLA also embeds itself in innovation hubs such as Zhongguancun to form “smart military industry alliances,” while national laboratories like Qiyuan, Zhiyuan, and Pengcheng function as centers for foundational research and high-end talent cultivation. Programs such as the “Insight Action” initiative publicly solicit civilian technological breakthroughs for defense applications, and state-owned conglomerates invest heavily in promising AI start-ups. Additional tools include dedicated defense technology websites and extensive competitions to identify cutting-edge solutions.
Despite rapid progress, China still faces structural constraints, including U.S. export controls on advanced chips and limits in original AI research. As a result, China remains a fast follower rather than a global leader in foundational AI, though it continues to expand a comprehensive ecosystem of private firms supporting military AI development.
Keywords: Military-Civil Fusion, Large Language Models, Public–Private Sector Collaboration, Unmanned Combat Systems, Command and Control (C2)