Pulling Back the Curtain on China’s Military-Civil Fusion

China is rapidly expanding its military use of artificial intelligence by drawing on both long-standing defense contractors and a new wave of private companies and universities. State-owned enterprises still dominate high-value contracts, but nontraditional vendors and research institutions now play a significant role in supplying the PLA. This mix of old and new suppliers reflects Beijing’s push to fuse civilian innovation with military power, complicating U.S. efforts to track and restrict technology transfer. The report highlights how blurred boundaries between civilian and defense sectors could accelerate China’s military modernization.