(EST Pub Date) Science and Technology in Communist CHINA Through 1970

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Approved for Release: 2018/01/30 C00659420
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equipment. The Chinese are attempting to mod-
ernize the coal industry. As a result, the supply
of machinery and equipment from domestic sources
may become larger, of better quality, and more
diversified in the future.
216. While the Chinese are technically able to
develop and exploit oilfields and are believed to be
able to build and operate refining facilities capable
of providing most of the country’s needs for petro-
leum products, China does not have sufficient sec-
ondary processing units to produce the desired
quality and mix of petroleum products. For ex-
ample, without such secondary processes as
alkylation, reforming, andl or catalytic cracking,
China does not have the capability to produce high-
grade aviation gasoline. The production of jet
fuel, however, does not require the use of these
types of equipment or material, therefore China
is believed to have the capability to produce jet
fuel. However, any production of jet fuel would
be at the expense of other products such as motor
gasoline and lamp kerosene.
217. The Chinese probably will remain depend-
ent on outside sources for secondary refining equip-
ment through 1970. Purchases of such equipment
from the Free World will provide China with the
capability to produce important raw materials for
the petro-chemical industry and will serve to im-
prove the over-all technological level of China's
refining facilities. Acquisition of such equipment,
moreover, will enable the Chinese to gain experi-
ence in the-operation of more sophisticated proc-
esses and could provide prototypes for eventual
domestic manufacture of similar equipment. The
selected purchases of complicated equipment
through 1970 are expected to include arrangements
for technical training.
218. By 1960, the electric power industry of
China had reached a level of technology com-
parable to the US power industry during the late
l920’s and the 1930’s. The industry is comprised
of a mixture of the small, old, ineflicient power-
plants that the Communists inherited in 1949 and
of the relatively modern thermal electric and hydro-
electric powerplants which have been constructed
since 1949 with extensive equipment and technical
assistance from the USSR and the European Satel-
lites. Technological developments within the in-
dustry have remained static during the last 4 years.
Present capacity is probably sufficient to meet re-
quirements for electric power through 1970, but
some installation of new capacity will take place
to meet specific local requirements for electric
power as they arise. The Chinese electro-techni-
cal industry can produce most of the generating and
transmission equipment needed. The only appar-
ent technical obstacle that the Chinese will en-
counter in the completion of plants now under con-
struction is in the manufacture of large generating
equipment for such projects as the San-men Hsia
Hydroelectric Powerplant. Such equipment prob-
ably will be imported.
219. The construction materials industry in
China is extremely backward and will remain so
through 1970. However, the Chinese construction
materials industry can provide the basic materials
needed to build most types of projects. The Chi-
nese have built small-scale plants, which produce
a low-grade product for local construction and have
built large plants to produce materials for con-
struction in the more modern sectors of the econ-
omy. The average quality of Chinese construction
materials is below Western standards, but it is ade-
quate to build projects that are structurally safe
and functional in nature. Moreover, the Chinese
are selective in the use of these materials, reserving
the high quality construction materials for export
or for military projects. _
_
3. Machine Building
220. a. cr:N1aRAL—China is able to produce a
fairly wide variety of basic types of machinery and
equipment for industry, transportation, and conven-
tional military use. Specific items include general
purpose machine tools, trucks, tractors, locomotives,
power generating equipment, simple petroleum
equipment, radio equipment, piston aircraft, textile
machinery for both natural and manmade fibers,
and less complicated types of farm machinery.
221. Al hough progress since 1950 in acquiring
industrial\§.qhnology has been impressive, the
present volu e and variety of production is small
in relation to industrial needs and military aspira-
tions. The most basic problem is the small size
of the present machine building sector in termS
of plant capacity and of skilled labor. There are
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Approved for Release: 2018/01/30 C00659420