China's newly revised "National Defense Mobilization Law" will take effect on October 1, expanding the scope of civilian resource collection, and Taiwanese assets may be included

Chinese military footage shows armored vehicles driving down the stern hatch of a large transport ship; the new version of the National Defense Mobilization Law expands the inclusion of civilian resources into the national defense mobilization mechanism. (Photo taken from CCTV)

China's newly revised "National Defense Mobilization Law" came into effect on October 1. The most significant change in the new law is that the old law only allowed temporary "expropriation". For the first time, "expropriation" with the nature of property rights transfer was included in the law, which expanded the wartime disposal from "borrowing" to "acquisition of ownership". With the expansion of the scope of civilian mobilization, various resources such as factories, equipment, and transportation vehicles held or used by Taiwanese businessmen in China may also be expropriated and requisitioned in accordance with the law when they meet the statutory mobilization conditions.

The US "Military Times" reported that Carl Thayer, an Asian defense expert at the University of New South Wales in Australia, pointed out that this amendment will allow China to more quickly obtain civilian entities and human resources in future conflicts. He believes that commercial aircraft, ships, private land, as well as satellite communications, information security systems and drone production may be included in the scope of mobilization.

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Article 63 of the new law officially announced by China stipulates that after the country decides to implement national defense mobilization, if the reserve materials cannot meet the mobilization needs in time, the people's government at or above the county level may "expropriate and expropriate" civilian resources in accordance with the law. Article 64 also stipulates that any organization or individual has the obligation to accept the expropriation and requisition of civilian resources in accordance with the law; if the People's Liberation Army, armed police and other units have needs, the government at or above the county level will organize and implement them in accordance with their authority and procedures.

The law expands the scope of civilian resources without special exemption for Taiwanese companies

The dispatch targets of the new law are not only traditional materials and transportation, but also cover strategic emerging fields and various key resources; Article 64 also clearly stipulates that "any organization and individual" has the obligation to accept the expropriation and requisition of civilian resources in accordance with the law. Although Article 65 lists some items of daily necessities and welfare institution premises that are exempt from expropriation and expropriation, it does not specifically exclude foreign-invested or Taiwanese enterprises. For Taiwanese businessmen operating in China, factories, equipment and other operational resources may therefore be included in national defense mobilization.

"Military Times" pointed out that some scholars believe that this amendment may target potential conflict situations such as the Taiwan Strait or the South China Sea. Taylor said China would have rapid access to relevant civilian entities and human resources in future conflicts, and warned that this change should be a signal of concern to U.S. defense planners. However, the newspaper also pointed out that the entry into force of the new law does not mean that China has decided to launch a war.

Zhang Han, spokesman for the Taiwan Affairs Office of the State Council of China, recently stated that there are legal conditions and procedures for the expropriation and expropriation of civilian resources, and relevant rights and interests are also protected. After the new law is officially implemented on October 1, how the relevant provisions will be applied to the assets of Taiwanese companies during extraordinary times, and how their rights and interests will be protected, will still depend on subsequent implementation.