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China's Defence Industry Faces Gap Between Strategy and Action, Report Says

Chinese defence suppliers are struggling to turn national strategic goals into effective actions, according to a recent analysis. The study, published in May in the academic journal Defence Industry Conversion of China, points to four major challenges that could hinder the implementation of Beijing’s 2026-2030 plan for the national defence industry.

The report’s authors, Gao Xufeng and Wu Ke, are strategic planning researchers from a Chengdu-based research institution. They found an “execution gap” where high-level objectives set by the government are not being translated into concrete steps by enterprises. This gap threatens the modernisation goals of China’s aerospace and defence sectors.

The study highlights underlying issues such as inadequate coordination, unclear responsibilities, and a lack of effective performance evaluation mechanisms. Without addressing these problems, the ambitious targets for the industry may not be met.

China has long prioritised military modernisation as part of its national development strategy. The 2026-2030 plan is a key part of these efforts, aiming to strengthen the country’s defence capabilities. However, the report suggests that simply setting goals is not enough; the execution at the enterprise level must improve.

The findings come as China continues to invest heavily in its defence industry, including aerospace. Analysts say closing the execution gap will require better integration of planning and implementation, as well as clearer guidance for companies involved.

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