World Bank Loans Finance Chinese Army

By Smith, Charles | Insight on the News, November 1, 1999 | Go to article overview

World Bank Loans Finance Chinese Army


Smith, Charles, Insight on the News


Newly declassified documents, forced from the U.S. Commerce Department by a federal lawsuit, show that $200 million in World Bank loans for a "technology development project" actually went to weapons-research labs and businesses wholly owned by the Chinese People's Liberation Army, or PLA. The documents reveal that World Bank loans were used to modernize the Chinese defense industry.

"The objective of the project is to support the [Chinese] Government's continuing reforms in technology policy and institutions so as to promote the development of clear, productivity-enhancing technologies in China's industries" states a 1995 report written by the Industry and Energy Operations Division of the World Bank.

According to the World Bank report, "The [Chinese] Government will pass on US $194.3 million of the loan proceeds through SPC [State Planning Commission] to eligible sub-borrowers in the form of sub-loans, with the Golden China Corporation acting on its behalf as a financial agent."

However, according to the Defense Department, "Golden China Corporation" and many of the so-called "engineering research centers" supported by the World Bank loans actually were owned and operated by the Chinese military's COSTIND, which stands for the Chinese Commission for Science, Technology and Industry for National Defense.

For example, the World Bank provided:

* $5 million to the Northwest Institute for Nonferrous Metal Research for "rare earth materials" used in chemical, aviation and nuclear power stations. The Northwest Institute for Nonferrous Metal Research is part of the China National Nuclear Corp., or CNNC, producer of all nuclear weapons for the Chinese military.

* More than $5 million to the Harbin Research Institute for "welded steel products" used in aviation and shipbuilding. Harbin was identified by the Department of Defense as a Chinese Army front used to purchase Allied Signal turbo-fan engines for the People's Liberation Army Air Force, or PLAAF, in 1996.

* More than $4 million to the Marine Design and Research Institute of China for "ship-design software and services." The Marine Design and Research Institute is part of the China National Ship Building Corp. and the primary design facility for all Chinese warships, including nuclear-powered submarines.

The loans to the Chinese military from the World Bank also financed several moneymaking ventures for the PLA. For example, the World Bank provided $5.5 million to the China Textile Academy for "productivity enhancement."

According to a 1997 Rand Corp. report on the Chinese defense industry, the profits from People's Liberation Army business ventures such as textile exports are split between the PLA generals and the Chinese military. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

World Bank Loans Finance Chinese Army
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.