China is leveraging its private sector to advance military AI capabilities, integrating civilian innovations into the People’s Liberation Army’s (PLA) modernization strategies. A significant focus is on developing automated systems for real-time battlefield adjustments, demonstrating ambitions that could enhance China’s military edge. The PLA’s approach, marked by the civil-military fusion strategy, allows for public bidding on defense contracts, inviting various private firms and universities to contribute to military technology advancements. This tactic raises concerns for the U.S., highlighting the need for strategic investments to remain competitive amid China’s proactive military modernization efforts. India’s defense strategy must consider these developments to bolster its own technological capabilities and readiness.