The file photo shows the license issued by Chinese military units for paid service. [Photo: weixinredian.cn]

The Chinese military has announced plans to phase out its commercial for-profit sector.

A recent document from the Central Military Commission says military units will no longer be allowed to launch new programs or sign new contracts of paid services, and expired contracts may not be extended.

Military officials are also asked to terminate existing contracts if the option is available.

The Chinese military has previously offered paid services in areas including medical care, research, and the performing arts.

Military expert with China's National Defense University Gong Fang-bin says the move will allow the military to re-orient its focus.

"The aim of this reform is to allow the military to focus on successful national defense. Paid services never were a main pillar of the development of our military. All militaries are supported by their governments and tax-payers. No military of large countries ever needs to fund itself. While China's military budget has been reduced a little this year, our national economy is fully capable of supporting the armed forces. This move will let the armed forces focus on building our military, and part company with all other unnecessary activities."

The Chinese military says it plans to fully eliminate its for-profit areas over the next three years.

In late 2015, China initiated a new round of military reform. Paid services were flagged up to be removed, to reduce corruption in the army.