Arms Trade Compensation Study

As a special category in arms trade, military offset is the extension of military-economy activities of a country and an important mode to use military resources of other countries. It gives arise to some controverts because its function is cryptic and special. After the end of the Cold War, the competition of national power based on economy is the main means to get hold of all kinds of benefits with the adjustment of world political pattern. The benefits gained by international (regional) political and military activities before are got by similar-economic ones now. As a part of similar-economic activities, the cryptic actions of military offset have come to be obvious. Military offset is one of the most popular trade methods in arms market at high speed.It is out of question that military offset is of very importance to Chinese defense industry and the realization of Chinese national strategy. This paper proceeds as follows. It first deepens the connotation of military offset, then sketches out the reason why military offset came into being and its variety, recovers the spirit of military offset. On the base of new theoretic frame, the decision-making and control of military offset are explored. Finally the paper tries to constructively supply some advices about how to develop and take advantages of military offset in China. The paper concludes that, in order to hold the advantaged position in future international competition, military offset should be incorporated into the Chinese military strategy. And necessary policy should be implemented to military offset according to different international environment and strategic need, so as to gain more strategy initiative in coordinating international relationsx strengthening peace power, developing the economy and the defense ability.