China’s “Military Procurement Network” recently issued a notice announcing that Xi’an Technological University, Xi’an Jiaotong University, and Southwest Jiaotong University have been barred from participating in the People’s Liberation Army (PLA) Rocket Force’s procurement activities for three years due to their involvement in “collusive bidding” and “bid rigging.” Given the long-standing collaboration between these universities and the defense technology sector, this decision is likely to impact China’s military-industrial research and development system.
According to reports from Future Network and the Military Procurement Network, the Rocket Force’s Logistics Department Procurement Supply Bureau issued a notice on the 16th of this month. It stated that Xi’an Technological University was found guilty of “collusive bidding,” while Xi’an Jiaotong University and Southwest Jiaotong University were involved in “bid rigging.” As a result, all three universities have been banned from participating in any procurement activities across all product categories within the Rocket Force from August 16, 2024, to August 16, 2027.
According to public information, Xi’an Technological University, originally a military engineering school and one of China’s “Seven Sons of National Defense,” is the only public university in the Northwest region with an Academy of Weapon Science and Technology. The university has strong research and development capabilities in military engineering fields such as optical engineering, materials science and engineering, and mechanical engineering.
Xi’an Jiaotong University, a key national university directly under the Ministry of Education, is jointly established with Shaanxi Province and the State Administration of Science, Technology, and Industry for National Defense. Its military engineering disciplines include aircraft design and engineering, nuclear engineering, and nuclear technology. This year, the university was recognized as one of the “Top Ten Collective Institutions in National University Government Procurement,” but shortly thereafter was excluded from the Rocket Force procurement system due to its involvement in bid rigging. Located in Chengdu, Sichuan, Southwest Jiaotong University is China’s first higher education institution in engineering, with a nationally top-ranked transportation engineering discipline and an aerospace school, which gives the university significant standing in the field of military-industrial research.
This incident occurs as China’s military procurement system is facing a severe anti-corruption crackdown. Since 2023, the Rocket Force and its equipment procurement departments have become hotbeds of corruption investigations, with several high-ranking generals and military-industrial executives being investigated and removed from office, including former Defense Ministers Wei Fenghe and Li Shangfu, as well as Rocket Force Commander Li Yuchao and Chief of Staff Sun Jinming. These events highlight serious issues within the PLA’s procurement and equipment sectors and demonstrate the authorities’ determination to intensify anti-corruption efforts within the military.
In light of the three universities being banned from participating in Rocket Force procurement activities, analysts believe that this is an important step in enhancing the transparency of national defense technology procurement and combating unfair competition. More improper conduct related to military-industrial research and procurement may be exposed in the future, further regulating the military procurement market.