China's Military-Civil Fusion (MCF) strategy aims to improve its military capabilities by utilizing technologies developed in the commercial sector. The strategy, which has drawn comparisons to the U.S. concept of 'civil-military integration' (CMI), is on an unprecedented scale [9ff8c78a].
China established the Central Commission for Military Civilian Fusion Development (CCMCFD) in 2017, elevating MCF to the highest level of national strategy. The MCF strategy involves the integration of military and civilian resources, with a focus on leveraging advancements in technology to enhance China's military capabilities [9ff8c78a].
The U.S. has implemented various classifications to counter China's MCF programs. These include Chinese Military Companies (CMCs), Military End Users (MEUs), Military, Security, or Intelligence Services End Users (MSIEUs), Chinese Military Industrial Complex Companies (NS-CMICs), and Communist Chinese Military Companies (CCMCs). The U.S. is also developing classifications for MCF research institutions. These classifications are part of the U.S. efforts to track and monitor China's MCF activities and provide due diligence on affiliated companies [9ff8c78a].
China's MCF strategy has raised concerns among U.S. officials and experts. They worry that China's integration of military and civilian resources could lead to the transfer of sensitive technologies and intellectual property from the commercial sector to the military. This could potentially enhance China's military capabilities and pose a threat to U.S. national security [9ff8c78a].
In response to China's MCF strategy, the U.S. has implemented sanctions and restrictions on Chinese companies and entities involved in MCF activities. These measures aim to prevent the transfer of sensitive technologies and protect U.S. national security interests. The WireScreen platform tracks these classifications and provides due diligence on affiliated companies [9ff8c78a].
China's MCF strategy and the U.S. countermeasures are part of a broader competition between the two countries for technological and military dominance. Both China and the U.S. are investing heavily in research and development, with a focus on emerging technologies such as artificial intelligence, quantum computing, and advanced manufacturing. The outcome of this competition will have significant implications for global power dynamics and national security [9ff8c78a].