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The military will put an end to all commercial activities before the end of this year, according to a guideline released on June 11.
Halting commercial activities is a decision of strategic importance made by the Communist Party of China Central Committee, the Central Military Commission and Xi Jinping, general secretary of the CPC Central Committee, said the guideline, jointly issued by the general offices of the Communist Party of China Central Committee, the State Council and the Central Military Commission.
The move is also a significant part of the ongoing reform of national defense and the military, and will help create an enabling environment for the military to stick to its mission and improve its combat capacity.
According to the guideline, the military will put an end to all programs that aim to make profit. Programs that deviate from its main mission or provide services for society will also be halted.
Contracts between the military and civilian entities that do not conclude by year"s end should be terminated by that time through negotiation or legal procedures, it said, adding that compensation will be provided for economic losses.
Different strategies should be adopted to terminate existing programs that are deemed sensitive or sophisticated. Some former military services can be absorbed through military-civilian integration.
The guideline said all properties, land and reception facilities owned by the military and used for commercial purposes, will be administered and allocated by the Central Military Commission. Terminating such services was the shared responsibility of the military as well as central and local authorities.