Unless they concerned state secrets, military projects in sectors such as transport, power and telecommunications fields must be put up for public bidding, Xinhua news agency said, citing an order from Hu “in recent days.”

Household materials and supplies for military personnel, including for the construction of homes, medical services and automobiles, must be procured through the market, the rules said.

Military publications, kindergartens, elementary schools, sports organizations and cultural and art troupes and institutions would also be phased out “unless they have a particular military use,” the rules said. No specific details on the financial impact of the rules were given, but they said that up to 15 percent of what the military spends on procurement should be “marketized” by 2010.

China’s military budget increased to US$35 billion in 2006, up 14.7 percent over the previous year, following a nearly double-digit annual increase over the last decade.

Its rising military spending has caused international concern, particularly from the United States.

However, the government insists that the overwhelming majority of its military expenditures are spent on housing and paying its nearly 2.5 million soldiers, the world’s largest army.

In an effort to build a more professional army, China’s military was ordered in 1998 to sell or restructure its lucrative commercial industries that once produced many civilian goods such as motorcycles and air conditioners.

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