Beijing Is Preparing a Legal Framework for Mobilizing Resources in Case of War

On October 1, the revised version of the PRC’s “Law on National Defense Mobilization” will take effect. The document expands Beijing’s ability to shift the economy, government agencies, and society to a wartime footing. This first of all applies to a scenario involving a major conflict, particularly one involving Taiwan.

Overall command of mobilization is entrusted to the Communist Party of China, and the decision to declare mobilization will be made at the highest levels of state leadership.

The key change is the expansion of the grounds for mobilization. It is no longer just about threats to sovereignty or territorial integrity, but also about the “unity, security, and development interests” of the PRC. The concept of “unity” effectively creates an additional legal basis for Beijing’s actions in case of an escalation of the situation surrounding Taiwan.

The law also provides for broader involvement of the civilian sector. During mobilization, the state will be able to utilize resources from the financial system, transportation, energy, telecommunications, and information infrastructure. Businesses may be required to reorient production toward defense needs and to build up reserve capacity and stockpiles.

The state will have the right to temporarily use the property of citizens and organizations, with compensation provided for any damage or destruction. Age limits have been established for those subject to military service: men aged 18–60 and women aged 18–55. Fines, administrative penalties, and criminal penalties are provided for evading mobilization duties, refusing to provide resources, or disclosing classified information.

A separate section addresses cyberspace, outer space, drones, artificial intelligence, and information technology. The law also tightens control over the information environment during mobilization and establishes liability for disseminating information that the authorities deem false.

At the same time, Beijing is strengthening the protection of critical infrastructure, evacuation planning, and the reserving of transportation, energy, and industrial capacities. To this end, a unified digital system is being created to track human, industrial, transportation, and other resources available for defense needs.

In fact, China is creating a legal framework for the rapid conversion of the civilian economy to meet military needs. This aligns with Xi Jinping’s policy of integrating the military and civilian sectors and strengthening the CCP’s control over the mobilization system.

Such a model will be most significant in case of a conflict over Taiwan. Beijing will be able to more quickly mobilize industry, transportation, the civilian fleet, and technology companies to compensate for a shortage of military resources. At the same time, for foreign businesses, this means higher risks of the forced use of assets, technologies, and production capacity in case of a large-scale crisis.