So the PLA and PAP own industries of profit?In its early years of fighting against both the KMT and Japanese, the Red Army had to fend for itself in remote, rural areas. The communists reduced the burden on the peasants by raising their own crops and livestock. This tradition continued into the PLA era, helping to reduce government expenditures for defense. However, the practice got out of hand in the mid-1980s and 1990s during the period of rapid economic growth, but of limited official allocations to the military. Training time was lost, graft and corruption were rampant, and profits were problematic as the PLA moved from subsistence farming and light industry into a vast array of commercial enterprises.
In 1998, President and Chairman of the CMC Jiang ordered the PLA and PAP to divest themselves of most of their commercial enterprises. However, as noted by the U.S.-China Commission:
That is unusual. Anybody care to elaborate?