China has revised its National Defense Mobilization Law to allow the state to requisition civilian technology, materials, and personnel for military use [1, 2].
The move increases the risk for international firms and Taiwanese companies operating within the People's Republic of China. By blurring the line between commercial and military resources, the state can more rapidly integrate private sector innovations into its defense apparatus.
The announcement regarding the law's revision occurred on Friday, Aug. 23 [2]. The legislative changes aim to strengthen the ability of the Chinese government to convert civilian tech and personnel into military capabilities [1].
Sheng Ming-shih, a security expert at the Institute for National Defense and Security Research, said the revisions raise significant concerns for Taiwanese firms. Because these companies often maintain deep operational ties in the mainland, they may find their intellectual property or staff subject to state requisition under the new rules [2].
This legislative shift comes amid rising cross-strait tensions. The National People's Congress has sought ways to ensure that the domestic economy can support a full-scale military mobilization if required [1, 2].
Reporting on the revision surfaced on Aug. 28 [1]. The law provides a legal framework for the state to seize resources without the traditional constraints of commercial contracts, or private ownership rights, during periods of national mobilization [1].
Industry analysts said the law creates a precarious environment for foreign investment in high-tech sectors. If a company's technology is deemed essential for national defense, the state now has a clearer path to mandate its use for military purposes [2].
“China is revising its National Defense Mobilization Law to strengthen its ability to convert civilian tech and personnel into military capabilities.”
This legislative change signals a shift toward a 'whole-of-society' approach to national security in China. By legalizing the requisition of civilian assets, Beijing reduces its reliance on purely state-run military production and creates a legal mechanism to weaponize the private sector. For Taiwanese and global firms, this increases the geopolitical risk of maintaining physical assets or research facilities within China, as those assets could be seized to support military operations against their own home governments.
