Termination of the Chinese military's commercial activities will strongly lessen incentives for military-related corruption while consolidating the PLA's combat capability, military experts said.

"Some commercial fields engaged in by the People's Liberation Army units are actually prone to corruption and other misconduct. The corruption case of Gu Junshan and those of other senior officers were closely connected to their involvement in businesses," said Senior Colonel Gong Fangbin, a political education researcher at PLA National Defense University, referring to Gu, former deputy head of the PLA's logistics authority, imprisoned in a embezzlement and bribery case.

"The military's involvement in the commercial sector has also aroused suspicion about whether it properly uses defense funds," he added. "Moreover, there have been concerns that the PLA would use its advantages in a race for profits and overpower civilian competitors."