Troops of the People's Liberation Army (PLA) are urged by President Xi Jinping to retire early and are given a hefty retirement package.
The move to cut the PLA is part of the Communist Party's plan to cut 300,000 troops from the 2.3 million membership. This has been the biggest cut in the army since the Cold War.
The planned reduction will be to reach 2 million which will be split to the National Guard and a million spread out in the army, navy and air force. Much of the reduction are being burdened by the army.
The army used to have 850,000 troops and at present only holds 490,000. The maritime force is slashed to 210,000.
An officer from the PLA, who asked to remain unknown, said that the retirement package includes tens of thousands of dollars and 80 percent of the pre-retirement wage. The amount is not publicly revealed.
The government has also released an order to state-owned enterprises to employ former soldiers, and to ensure "social harmony and stability".
Yue Gang, a retired colonel who served in the PLA's General Staff Department, said, "Soldiers have a deterrent and destructive power once they unite to do something together, and they could cause some social stability issues easily.'
He continued, "Soldiers are less adapted to society because they may not have the skills that the job market wants and not be familiar with workplace culture. And that's why they need more support from the government."
The Chinese PLA was established as the armed forces of the Communist Party of China. Its four branches are Ground Force, Navy, Air Force, Rocket Force and the Strategic Support Force.
A veteran from Guangzhou agrees with making the PLA a leaner fighting machine. He said that the CPC should focus on strengthening the Navy.
He said, "China's national interests have expanded overseas year after year, with the PLA Navy needing to protect the country's offshore oil lines and overseas Chinese nationals, and boost its capability in international anti-piracy missions."