Soldiers in a brigade attached to the 83rd Group Army of the Chinese People’s Liberation Army conduct virtual reality exercises. Photo: Screenshot from China Central Television
According to a congressional report, the People’s Liberation Army continues to exploit military-civil fusion to integrate commercial and academic research into military systems. Military-Civil Fusion is China’s national strategy to merge civilian technology, research institutions, and industry with the defense sector in order to build a world-class military.
The strategy aligns commercial innovation with military requirements across fields ranging from artificial intelligence to semiconductors, pooling state and private resources to accelerate military development. Chinese authorities describe military-civil fusion as a core component of comprehensive national power and a central driver of long-term military modernization.
Through state laboratories, funding programs, conferences, and industrial parks, China has ensured sustained private-sector participation in this effort. As a result, it has made significant advances in artificial intelligence and large language models that underpin many emerging PLA technologies. AI reasoning systems support cyber operations, command decision-making, and influence campaigns, while also enabling autonomous and unmanned platforms, drone swarms, and loyal wingman UAVs.
These capabilities increasingly intersect with developments in quantum computing, quantum sensing, and quantum communications, which China has identified as priorities for national security and future warfare.
Chinese leader Xi Jinping has described quantum technologies as drivers of industrial transformation, and Beijing is investing in post-quantum cryptography, military applications of quantum sensing, and ground- and space-based infrastructure for a global quantum communications network with both civilian and military uses.
Quantum communications support nuclear command, control, and communications by enabling hardened and interception-resistant links, while quantum sensing has potential applications in anti-submarine warfare by enabling detection methods that do not rely on active sonar.
Semiconductor self-sufficiency remains a parallel strategic objective. In 2024, firms including Semiconductor Manufacturing International Corp and Huawei Technologies received substantial local government funding to accelerate chip indigenization. Although China continues to lag the West in the most advanced GPUs, it is pursuing alternative pathways through nontraditional microchip technologies, including photonic components developed by state research institutes.
Domestic chip production underpins military resilience by enabling continued weapons manufacturing under sanctions and securing supply chains for missiles, drones, and radar systems. Alternative chip architectures support AI processing and reduce reliance on advanced Western GPUs, sustaining production capacity during conflict.