Other major weaknesses include monopoly in the defense industry held by state-owned companies, bureaucratic inefficacy, corruption, lack of innovation, outdated pricing and contracting process.
[6] Chinese state-owned defense corporations are historically uncoordinated and inefficient, inclined toward to the preservation of their state-sanctioned monopoly, exploiting their gain in a privileged position due to obstruction in fair competition with private enterprises.
[3] Richard A. Bitzinger believes MCF would requires significant effort and resources to implement successfully, given the current legal, regulatory, and cultural hurdles that exist in the Chinese government.
In January 2017, Xi Jinping created a Central Military-Civil Fusion Development Committee (CMCFDC), which is responsible for the planning and implementation of the MCF in China.
[8] In May 2020, the Trump administration issued a presidential proclamation banning certain Chinese students and researchers from coming to the United States based on their perceived relationship with military-civil fusion.
Other analysts asserted that the definition is largely divorced from the purpose and objective of military-civil fusion and that instead it describes China's general issues on technology transfer.