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China is planning to open up its military industry to foreign investors.

In a statement posted on its website, the Commission of Science Technology & Industry for National Defense said China is to allow foreign investors to "conditionally participate in the shareholding restructuring of (the country's) military companies".

The statement, issued jointly with the National Development and Reform Commission and the State-owned Assets Supervision and Administration Commission, said companies which design and produce strategic and other major weapons that involve core state secrets and those that have a direct bearing on national security will still be off-limits to foreign investments.

In extraordinary circumstances, the government will impose special regulations on the research and production of weaponry equipment, according to the statement.

Works on a draft of the new policy is already underway, the commission said.