Military-civil Fusion is a key Chinese Strategy with long-term Implications: An Interview with Jingdong Yuan and Yifei Zhu

Experts Take April, 2025

The People’s Liberation Army (PLA) of China is undergoing a significant strategic transformation, prioritizing modernization through the integration of advanced technologies into its military capabilities. In recent years, the PLA has adopted increasingly assertive and coercive actions in the Indo-Pacific region while accelerating the development of new military capabilities and operational concepts. These efforts aim to enhance China’s ability to “fight and win wars” against a “strong enemy,” deter third-party intervention in conflicts along its periphery, and project power on a global scale.

Concurrently, China has largely curtailed, postponed, or ignored recurring bilateral defense engagements with the United States, primarily due to Washington’s support for Taiwan. This shift in China’s defense posture must be understood within the broader context of its territorial disputes in the Indo-Pacific, its strategic partnership with Russia, and its ambitions to reshape the international order in line with its governance model. As the Chinese Communist Party (CCP) seeks to achieve its vision of “national rejuvenation” by 2049, CCP leadership views the establishment of a modern, capable, and “world-class” military as essential to navigating an increasingly volatile global landscape.

A key pillar of China’s long-term strategy is the development of a fully self-sufficient defense-industrial complex, closely integrated with a robust civilian technology sector, to ensure that the PLA remains equipped with cutting-edge military capabilities.

The defense discourse related to China is a sensitive matter that is often tackled through a US perspective. For this reason, the Institute for Security and Development Policy (ISDP) interviewed, early this year, with two Sweden-based experts, Dr. Jingdong Yuan from the Stockholm International Peace Research Institute (SIPRI) and Dr. Yifei Zhu from ISDP’s China Center, who participated in the ISDP and EuroHub4Sino (EH4S) workshop titled “Navigating the Dragon’s Tech Leap: European Responses to the PLA’s Technological Transformation” in September 2024 under a euro-centric perspective.

In the first interview, Dr. Jingdong Yuan, Director of the China and Asia Security Program at SIPRI, discusses the People’s Liberation Army’s (PLA) technological transformation, focusing on advancements in artificial intelligence (AI), space systems, hypersonic capabilities, and military-civil fusion. He highlights the implications of these developments for European security, emphasizing the need for Europe to enhance its defense capabilities and technological preparedness.

The second interview, with Dr. Yifei Zhu, a Research Fellow at ISDP, examines the European response and future strategic outlook. He explores the integration of foreign and domestic technologies within the Chinese military, particularly in key areas such as drones and semiconductors, and the implications for hybrid warfare. Additionally, he addresses Europe’s vulnerabilities, particularly in cybersecurity and dual-use technologies, and discusses strategies for balancing technological openness with risk mitigation.

Both experts respond to the same set of questions, offering their unique insights on these critical issues.

We would also like to extend our gratitude to the previous interns, Céline Hedin and Tony Su, who conducted these interviews, and whose efforts were instrumental in shaping this research.

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