Abstract: Constructing an integral defense economy that has an independent armament produc tion ability is a basic goal of various powers. While the Defense is non-produc tive, the various powers seek for the optimization model combining the civil and defense industries. In light of the long practice of the various powers, it is no doubt that the dual-use strategy is the optimization model to realiz e the effective economic resource distribution. To compete with other powers, Ch ina, as a newly rising power, should think of something from the various powers to construct a national economic and scientific innovation system that integrate s defense economy into civil economy, and on the basis of armament procurement r eform, realize the dual-use strategy through defense organization rebuilding an d defense industry transformation.