(In July 1999, the China Aerospace Corporation was divided into two organizations: the China Aerospace Machinery and Electronics Corporation (CAMEC) and the China Aerospace Science and Technology Corporation. In 2001, CAMEC was renamed China Aerospace Science and Industry Corporation (CASIC).)

Founded on July 1, 1999, CASIC (then CAMEC) is one of the two organizations formerly part of the China Aerospace Corporation. It was broken off from CASC as part of the government's effort to reform China's defense industry by loosening the state's control over enterprise operation and by trying to inject some degree of competition into the defense industries. According to its own official information, CASIC is a state-owned and state-funded operation with registered capital of $74 billion yuan. It is composed of 140 corporate units (including subsidiary research centers, factories, share-holding companies, and minor-stock holding companies) and employs 100,000 people, 40% of whom are specialists and technicians.

The majority of CASIC's work is in the areas of missile development, aerospace electronics and other aerospace equipment. According to company statements, CASIC is "mainly engaged in different missile systems and other aerospace products" and specializes in such technical areas as guidance and control systems, detection systems, information systems, and systems integration. China Aerospace Science and Technology Corporation (CASC), the other half of the former CASC, will principally produce space launch vehicles and satellites and provide launch services. Given CASIC's responsibilities over missiles and aerospace electronics, it inherited three of the CASC's former research institutes:

• China Changfeng Machinery and Electronics Technology Institute (former CASC 2nd Academy)
• China Haiying Machinery and Electronics Technology Institute (former CASC 3rd Academy)
• China Aerospace Architecture and Design Institute.

CASIC has also inherited 4 of the former CASC's R&D production bases:

• China Jiangnan Aerospace Industry Corporation
• China Sanjiang Aerospace Industry Corporation
• Hunan Aerospace Industry Company
• China Hexi Chemical and Mechanics Company (former CASC 4th Academy).

In September 2003, a four-stage solid propellant launch vehicle designed by CASIC was successfully test fired at Taiyuan Satellite Launch Center. The rocket, dubbed the Kaituozhe-1 (KT-1), is mobile-launch capable.

In addition to conducting military-related work, CASIC also produces civilian products and provides civilian services including machinery, electronics, chemicals, communications, computers and their applications, satellite applications, transportation facilities, pharmaceutical utensils and construction.

Sources:

"China Aerospace Machinery & Electronics Corporation Founded," Zhongguo Hangtian (China Aerospace), July 1999; "Yin Xingliang Takes over as CASIC General Manager," Beijing Zhongguo Hangtian Bao in Chinese, 9 January 2004; Chinese Defence Today, www.sinodefence.com/space/facility/casic.asp; "Test Flight of Kaituozhe-1 Produces Mixed Results," Beijing Zhongguo Hangtian Bao in Chinese, 19 September 2003.