The fundamental questions are simple. Can the Chinese defence industries make what the People's Liberation Army (PLA) needs? Can they develop and produce systems to allow the PLA first to overcome its problem of “short arms and slow legs,” secondly to move from brownwater coastal defence to green-water offshore defence (and eventually blue-water power projection), and thirdly successfully to conduct “limited wars under high-tech conditions”? Indeed, in a larger sense, can the defence industry, under the conditions and pressures of economic reform, survive except by “converting”? The answers, however, are not as simple as might be thought.