Financial Risk:
Critical
Score:
14/100
Asset Disposals
Q24
17/100
How effective are controls over the disposal of assets, and is information on these disposals, and the proceeds of their sale, transparent?
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There are different regulations that govern the asset disposal process which are publicly available (Law of the PRC on Protecting Military Facilities 1990, Law…
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There is no publicly available information on the process of planned or actual asset disposal.
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There is no publicly available information on the financial results of actual asset disposal.
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Q25
17/100
Is independent and transparent scrutiny of asset disposals conducted by defence establishments, and are the reports of such scrutiny publicly available?
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The CMC Audit Office (CMCAO) is in charge of scrutinising asset disposals. In 2014 the CMCAO became independent from the former PLA General Logistics…
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Scrutiny is only internal, provided by the CMC Audit Office and, in case of suspected corruption, the Discipline Inspection Commission. Both the CMCAO and…
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Audit reports are not made public. There is no guaranteed access to information by law and in practice, asset disposal reports are not made…
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Secret Budgets
Q26
0/100
What percentage of defence and security expenditure in the budget year is dedicated to spending on secret items relating to national security and the intelligence services?
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Information on secret items spending is not publicly available nor can an estimate be easily offered. [5,6] The published defence budget includes only three…
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Q27
0/100
Is the legislature (or the appropriate legislative committee or members of the legislature) given full information for the budget year on the spending of all secret items relating to national security and military intelligence?
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Neither the Chinese Constitution nor the NPC or PLA regulations stipulate access to information on secret budgets. In addition, the People’s Liberation Army Secrecy…
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Q28
0/100
Are audit reports of the annual accounts of the security sector (the military and intelligence services) subject to parliamentary debate?
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Q29
8/100
In law, are off-budget military expenditures permitted, and if so, are they exceptional occurrences that are well-controlled? In practice, are there any off-budget military expenditures? If so, does evidence suggest this involves illicit economic activity?
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China’s publicly announced defence budget includes only three broad categories: foreign acquisitions, military R&D, and the military component of space exploration. [1,3,4,5,9] It is…
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There are no recording mechanisms or regulations that would force these off-budget military expenditures to be recorded in the budget. [1,2]
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Off-budget military expenditures, which are not illegal in China, are estimated to be a large proportion of military spending, close to 33%. [1,2] The…
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There is no mechanism for accessing information from the defence sector. Existing Open Government Information regulations stipulate that access to military information falls under…
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This indicator is not assigned a score in the GDI. China’s law on the Protection of State Secrets (中华人民共和国保守国家秘密法) stipulates that military secrets are…
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As explained in 30A, there is no mechanism for accessing information from the defence sector. Existing Open Government Information regulations stipulate that access to…
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Q31
NEI/100
Do national defence and security institutions have beneficial ownership of commercial businesses? If so, how transparent are details of the operations and finances of such businesses?
View QuestionMilitary-owned Businesses
Q32
25/100
Are military-owned businesses subject to transparent independent scrutiny at a recognised international standard?
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Military-owned businesses are scrutinised by organs of the Chinese Communist Party. The CCP has its own anticorruption organ, the Central Commission for Discipline Inspection,…
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Audit details of military-owned businesses are not routinely made available to the public. Some information on cases involving corruption is released occasionally [1] but…
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Illegal Private Enterprise
Q33
75/100
Is there evidence of unauthorised private enterprise by military or other defence ministry employees? If so, what is the government’s reaction to such enterprise?
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The Chinese Civil Service Law [1] explicitly forbids all public employees from engaging in private businesses (Article 53) and stipulates specific time gaps between…
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There has been evidence of poorly regulated businesses and use of military units and equipment for private gain. Following two divestitures in 1998 and…
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Actual Military Spending
Q77
0/100
Is comprehensive data on actual spending on defence published during the budget year?
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There are no reports on actual spending made available to the public or the legislature during the budget year. China only publishes its annual…
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No actual spending information is made publicly available during the budget year. As such, this indicator is scored ‘Not Applicable’.
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No actual spending information is made publicly available during the budget year. As such, this indicator is scored ‘Not Applicable’.
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No actual spending information is made publicly available during the budget year. As such, this indicator is scored ‘Not Applicable’.
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