Six Chinese Agencies Ban Sale of Retired Military Equipment
China’s Central Military Commission (CMC) Equipment Development Department, together with five other civilian and military agencies, issued a sweeping ban on July 28 prohibiting the sale of decommissioned and scrapped military equipment. The joint notice, published by the State Administration for Market Regulation, aims to eliminate security risks arising from the public sale of sensitive military assets and to protect the reputation of the People’s Liberation Army (PLA).
The Three Core Prohibitions
The notice, designated Document No. 军装管〔2026〕33号, was drafted on July 23 and published five days later. It establishes three clear prohibitions, as reported by The Paper:
- No sale of decommissioned equipment: Any entity or individual is barred from selling retired military equipment. An exception exists for items listed in the official sales catalog of disassembled parts published by China Rongtong Asset Management Group, or other equipment specifically approved by the military.
- No imitation equipment: The production, modification, or assembly of items using decommissioned parts that could cause the public to mistake them for military equipment is forbidden, as is the sale of such imitations.
- No commercial marketing: Any form of commercial promotion or advertising of decommissioned military equipment or imitation items that could be mistaken for official military gear is banned.
The regulation defines “decommissioned and scrapped military equipment” broadly to include all types of equipment, ammunition, devices, and related components and materials that the military has approved for exit from service or treatment as scrap.
Enforcement and Penalties
The six issuing departments — the CMC Logistics Support Department, CMC Equipment Development Department, CMC Political and Legal Affairs Commission, the Ministry of Public Security, the State Administration for Market Regulation, and the State Administration of Science, Technology and Industry for National Defense — will strengthen routine supervision and inspection. Violations that endanger public safety or military secrets will be investigated and punished according to law, with criminal liability pursued where applicable.
Building on a 2022 Precedent
The 2026 notice follows a similar inter-agency effort from July 2022, when six departments — including the CMC Logistics Support Department and SAMR — banned the sale of “military-branded” cigarettes, alcohol, and other consumer goods. That earlier regulation targeted operators who used military-specific wording and imagery to sell counterfeit products such as “military-spec Maotai” and “military-exclusive supply” items, as Xinhua reported.
While the 2022 ban focused on protecting military branding and reputation, the 2026 regulation escalates the approach by controlling the physical assets themselves — a shift from brand protection to asset control.
The China Rongtong Exception
A notable feature of the new regulation is its exception clause: only China Rongtong Asset Management Group is authorized to sell decommissioned military equipment parts through an official catalog. China Rongtong was established in March 2020 as one of three new state-owned enterprises created by the State-owned Assets Supervision and Administration Commission (SASAC). According to Caixin Global, the company’s first Party chief, Wen Gang, comes from a military equipment background, positioning the firm as a key bridge between military asset management and civilian commercial channels.
This exclusive designation suggests that Beijing intends to centralize the disposal of military surplus under state monopoly rather than allowing private market channels to develop — a model that mirrors the broader trend of consolidating strategic assets under state control.
Broader Significance
The regulation is part of a wider pattern of tightening controls over military-related commercial activities in China. By closing the loophole that previously allowed the sale of actual decommissioned equipment — as opposed to merely branded imitations — the government is addressing two categories of risk explicitly cited in the notice: social public safety hazards from sensitive items entering open markets, and military secret security risks from equipment that may contain sensitive design elements or technical specifications.
What to Watch For
Key questions remain about enforcement mechanisms and the practical impact on existing online and offline markets. Observers will be watching for how the six departments coordinate across jurisdictions, what specific penalties are applied in early enforcement cases, and whether China Rongtong’s exclusive sales catalog creates a formalized state-run marketplace for military surplus. The regulation also invites comparison with international practices such as the U.S. Defense Reutilization and Marketing Service (DRMO) sales or the UK’s Disposal Services Authority, offering insight into China’s evolving approach to military asset management.
This article was written based on the official notice published by the State Administration for Market Regulation and supplemented by reporting from The Paper, Xinhua, and Caixin Global.