China's defense industry experienced rapid growth last year, with its annual turnover, industrial value added and product revenue have increased 21.7 percent, 26.8 percent and 26.4 percent respectively over 2003, according to the administration department.

Jin Zhuanglong, the spokesman for China's Commission of Science Technology and Industry for National Defense, said at an annual meeting on Monday that the value of the industry's products for civil use was 165.6 billion yuan (about 20 billion US dollars) in 2004, an increase of 26.8 percent year on year.

Last year, seven companies the industry went public, bringing the total number in the industry to 49, Jin said.

This year the national defense industry will adhere to the policies of serving for both military and civil use purposes and entering into international market via improving its technologies, the spokesman said.