CAC and XAC are all SOEs. They made J-20 and Y-20 and so far have good reputations. LM is pure private company and it delayed its promised delivery for many years with a sub-standard product (compared to the set goals, time frame and budgets).Nothing will get change so long as SAC stay SOE.Because the state company carry the burden of employing as many people as possible. Firing incompetent people is hard
Today there is this mundane announcement that PLA open research and development to private company.
I think this is water shed in PLA procurement that can lead to higher efficiency because private company are always more efficient by their very nature.
From Jane IHS
China opens military R&D to the private sector
Jon Grevatt, Bangkok - IHS Jane's Defence Industry
08 August 2016
China's military procurement system is, for the first time, encouraging the country's private sector to bid for military research and development (R&D) projects.
The projects are being advertised as tenders on China's military procurement website - - which was launched in January 2015.
Announcing the move on 7 August, the PLA Daily newspaper - the official mouthpiece of the People's Liberation Army - said that by advertising the projects it aims to encourage greater competition in China's defence industry, which is dominated by state-owned corporations.
The PLA Daily added that many of the R&D projects were submitted by the armament departments of the army and navy.
It is easier to blame either the laziness of SOE or greediness of Capitalist than finding the real cause. To me it is simple, carrot and sticks, punishment and reward.
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