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Thread: Arms Exports of PRC -- General Discussion.

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    Arms Exports of PRC -- General Discussion.

    A surprisingly good write up. (but it needs to cite sources) with some minor errors here and there; such as China's single largest customer as measure by volume is not Pakistan, but rather Bangladesh. Most China's arms to Burma goes to regional semi-independent districts such as the Chin and Kokang; a major policy shift. (and not tracked by UN)

    The source of article is from Malaysia, but this article does not deal with Chinese weapons in service with the Malaysian military.





    The creeping reach of Chinese arms



    The creeping reach of Chinese arms



    SINGAPORE, June 13 — Is China returning as a major player in the international arms market?

    According to data released by the United States Congressional Research Service, Beijing signed arms exports agreements worth US$3.8 billion (RM13.3 billion) in 2007 – its highest sales figures in more than a decade.

    In recent years, Chinese overseas arms sales have averaged more than US$2 billion a year, considerably higher than during the 1990s, when Beijing averaged less than US$1 billion a year in arms exports.

    In fact, China has not enjoyed sales this strong since the late ’80s, when it sold to both sides in the Iran-Iraq War. Its overseas arms agreements then approached US$3 billion annually, in today’s dollars.

    China is now, on average, the world’s fifth-largest arms exporter, after the traditional leaders – the US , Russia , France and the United Kingdom . In fact, in 2007 it was No 4 in terms of arms agreements, overtaking France .

    Nearly all of China ’s arms transfers are to developing countries, and in this arena China has become a formidable competitor. In terms of arms deliveries to the developing world, Beijing was No 3 in 2007. Its largest markets are in Asia, the Middle East and particularly Africa . In fact, from 2004 to 2007, China was the single largest seller of arms to Africa . Its major customers include Pakistan , Egypt , Myanmar , Iran , Zimbabwe and Zambia .


    TENUOUS STANDING?

    Nevertheless, China ’s current high standing in the global arms marketplace remains tenuous. In the first place, most of China ’s biggest arms sales are still to a handful of customers, particularly Pakistan .

    The 2007 figures were high because they counted a couple of big deals with Pakistan , such as for the JF-17 Thunder fighter jet, which Pakistan is co-producing with the Chinese.

    It is not certain, therefore, that China will be able to maintain such high levels of arms exports for the next several years. For example, Myanmar used to be a big buyer of Chinese arms, but its purchases have tapered off significantly in recent years.

    For the most part, China still sells mostly small arms and ancillary equipment, such as trucks, uniforms and tents.

    The country’s arms industry manufactures some impressive pieces of equipment, such as the C-802 antiship cruise missile (similar to the very effective French Exocet) and the K-8 jet trainer/light attack aircraft, but there have been few sales of these types of equipment lately.

    On the whole, though, China can offer few advanced weapon systems that are technologically competitive on the global arms market, and its customers still remain basically the poor (African states) and the pariahs (Iran).

    Moreover, many of China’s arms deals are mostly done at “friendship prices”, which entails selling arms at a discount, either for political purposes (cementing alliances) or, increasingly, to secure links with oil-producing countries.


    BIG-TICKET SALES

    For China to remain a leading arms exporter, it needs to come up with more competitive products. One big possibility for future significant overseas sales is China ’s new J-10 fighter jet, a cousin to the Israeli Lavi (upon which it is based) and roughly equivalent in capabilities to the US-built F-16C flown by the Singapore Air Force.

    The J-10 started development in the mid-1980s and finally entered production for the People’s Liberation Army Air Force (PLAAF) about three or four years ago.

    It is certainly a vast improvement over the 1960s- and 1970s-era Chinese and Soviet fighters that have filled out the PLAAF for decades, although probably not as good as the Su-27 or particularly the Su-30s acquired from Russia .

    There has in fact been considerable speculation that the Chinese might flood the global arms market with the J-10.

    This aircraft could be a good buy, as it would probably be offered at cut-rate prices, certainly below the F-16, the Swedish Gripen, and other smaller combat aircraft. Pakistan and especially Iran have been mentioned as prospective buyers.

    Other marketable products include the C-701 short-range antiship cruise missile (already sold to Iran and, reportedly, the Hezbollah), the FN-6 man-portable surface-to-air missile (exported to Sudan ), and the KS-1A surface-to-air missile (sold to Malaysia ).

    That said, most Chinese weapons systems remain an unknown quantity. The J-10, for example, may be a very good aircraft, but its performance and reliability cannot be independently confirmed, and many countries may not wish to take a chance on it. Countries do not necessarily buy the cheapest weapon systems available – capabilities and effectiveness count, especially when it comes to military products.

    Many countries, given the choice, will still pay a premium price to get a premium product. For example, when Pakistan decided to acquire new submarines, it bought from France , not China , and while it is buying Chinese fighters, it is also purchasing F-16s from the US .

    Even during the current global economic crisis, many potential buyers will still be hesitant to seriously consider Chinese weaponry more than they might normally, since they may have to live with these weapons for the next 20 to 30 years. Instead, these countries are more likely to delay any big-ticket arms purchases in general, and wait until the economy recovers – like most Asian countries did during the financial crisis in the late 1990s.

    One product area where the Chinese do have a considerable edge is ballistic missile systems, such as the DF-11 and B-611 short-range ballistic missiles. The DF-11 (also known as the M-11) has been sold to Pakistan , while Turkey has acquired the B-611. Sales of longer-range missile systems, however, are restricted by the Missile Technology Control Regime, which China has agreed to abide by.


    THE FUTURE OF ARMS SALES

    China is still extremely constrained when it comes to potential customers, the types of arms they may want to buy, and the types of arms it can sell. This is not to say that Beijing will not increasingly promote its arms on the global market, or that it will not score some coups when it comes to overseas sales. Certainly, expanding arms exports continues to be a key business strategy for Chinese defence firms – as much as it is for almost every arms manufacturer around the world.

    Given the global overcapacity in armaments production and economic pressures to keep factories open and preserve jobs, everybody wants to get in on the arms-export business. But do not imagine the Chinese will soon be supplanting or joining the US and Western Europe as a large supplier of sophisticated arms. – Today

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    Administrator Tarek Morgen's Avatar
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    China is now, on average, the world’s fifth-largest arms exporter, after the traditional leaders – the US , Russia , France and the United Kingdom . In fact, in 2007 it was No 4 in terms of arms agreements, overtaking France .
    I would have expected to see Germany in that list. Just alone H&K's exports are huge.
    uh I might be wrong


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    The PRC is also reluctant to export some of the "advanced" stuff like the 041 SSK, probably because the people who can afford it (Pakistan, Thailand, Egypt) also have very good ties with America.

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    Quote Originally Posted by Tarek Morgen View Post
    I would have expected to see Germany in that list.
    Depends extremely on the timeframe that one is looking at. Germany was #3 for the overall 2002 to 2007 period (SIPRI). But the big money is in aircraft and ships after all. Small arms and components are hardly relevant, and China doesn't really export the latter anyway. That's also why China is "only" #4 or #5 usually.

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    LIMA, Peru — Peru's military is close to a deal to buy tanks from China, the defense minister said Tuesday.
    Peru army plans arms purchase, tests Chinese tanks | Top AP Latin America Stories | Chron.com - Houston Chronicle

    Rafael Rey told The Associated Press that the army is testing MBT-2000 tanks brought from China, but wants a better-equipped model of the tank. Peru showed the tanks in a parade on Tuesday.

    Rey didn't say how many tanks Peru would buy. The Lima newspaper La Republica reported that it plans to buy 80 to 120 tanks and has evaluated Chinese, German, Russian, Ukrainian and Polish models.

    The defense minister later told RPP radio that Peru is also planning to look at navy and air force purchases as well.

    A military commission recommended that Peru buy Brazilian Super Tucano fighter planes. "The are very simple to operate but have advanced technology," Rey said.

    Peru President Alan Garcia has pushed for a disarmament pact in South America as weapons purchases in Venezuela, Brazil and Chile and a U.S. military expansion in Colombia fuels a budding arms race.
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    China financed $ 40 million to the Bolivian Army equipment


    China financiará con 40 millones de dólares equipos para el Ejército boliviano

    Por Agencia EFE – hace 6 días

    La Paz, 4 dic (EFE).- El Gobierno de China financiará con 40 millones de dólares el equipamiento de seis batallones de ingenieros del Ejército de Bolivia, anunció hoy el presidente Evo Morales al conmemorar el aniversario de una institución de las Fuerzas Armadas.

    El mandatario dijo en ese acto militar, celebrado en la ciudad de Cochabamba, que esta semana se aprobó un decreto para que Bolivia adquiera el préstamo de China con el propósito de equipar a los ingenieros militares de La Paz, Tarija, Cochabamba, Pando y Oruro.

    El préstamo de los 40 millones de dólares será otorgado por el Export Import Bank of China y se destinará para equipos que permitan construir carreteras nacionales e internacionales en el país.

    Además de este apoyo, China está asesorando a Bolivia en la construcción y puesta en orbita de un satélite propio.

    Morales participó en el aniversario de la Corporación de las Fuerzas Armadas para el Desarrollo Nacional (Cofadena), una entidad que realiza actividades productivas, pero que actualmente sufre falta de recursos.

    Morales achacó al "neoliberalismo" la situación de "quiebra" de esa institución productiva de las Fuerzas Armadas y prometió darle mas apoyo para fortalecer su crecimiento.

    La Cofadena presentó hoy al Gobierno medio centenar de tractores que fueron ensamblados en sus instalaciones y tiene como proyecto hacer lo mismo próximamente con máquinas iraníes.

    Al respecto, Morales dijo que técnicos de Bolivia y de Irán adelantaron diálogos el pasado 24 de noviembre, cuando el mandatario iraní, Mahmud Ahmadineyad, visitó La Paz.

    epa - european pressphoto agency: China financiar con 40 millones de dlares equipos para el Ejrcito boliviano
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    Peru arms buying shows Chinese inroads into S. America - UPI.com



    Peru arms buying shows Chinese inroads into S. America

    Published: Dec. 11, 2009 at 6:29 PM



    LIMA, Dec. 11 (UPI) -- Peruvian arms buying in China for undisclosed amounts but on favorable credit terms has confirmed analysts' assessment that China has joined a lineup of arms manufacturers seeking new markets in Latin America .



    China launched a major fightback in Latin America last year as its markets elsewhere shrank in response to the recession. Amid projection of a steep rise in China 's own energy consumption, China also went shopping for hydrocarbon companies and sealed contracts that would guarantee its oil and gas supplies.



    China entered into similar arrangements elsewhere, including Africa, the Middle East and Central Asia and the Caucasus .



    France and Russia launched energetic marketing campaigns in the region this year and have already secured contracts worth tens of billions of dollars. Russia 's arms sales to Venezuela on easy payment terms are known to run more than $20 billion, though neither side has revealed precise figures.



    What surprised analysts the most, however, was a Peruvian deal for the purchase of Chinese tanks and fighter aircraft. Until a few weeks ago, Peru was spearheading a campaign for limitation of arms purchases in Latin America , arguing none of the countries was at war and the resources would be better spent on reducing poverty.



    Peru has been cited for a substantial economic recovery and growth, projections that may have influenced the government's decision to opt for weapons acquisition at the best available terms.



    Alicia Barcena, executive secretary of the Economic Commission for Latin America and the Caribbean , said the region will grow 4.1 percent in 2010 with positive growth trends for most of the countries, MercoPress reported.



    "The worst of the crisis has been left behind. The motors of growth have already been restarted, but we still don't know how much will fuel last," said Barcena, adding a cautionary note that continuing and sustained recovery still depends on trends in global markets.



    Criticized shortly afterward for announcing his arms purchases, Peruvian President Alan Garcia defended his government's decision, saying the new tanks and aircraft would replace obsolete equipment.



    "This does not contradict our commitment to stop an arms race in the region," Garcia said, pointing out that Peru last purchased Russian T-55 tanks in the 1960s. "They needed upgrading, and it was decided to decommission them," he said.



    He said the purchase of new Chinese tanks would compensate for the absence of the Russian tanks and act as a deterrent "because we want Peru to be defended."



    The delivery of Chinese armor to Peru will ensure a long-term collaboration between the Peruvian and Chinese military establishments, analysts said.



    Five Chinese-built MBT-2000s took part in a recent military parade in Lima but neither government has revealed the final numbers bought under the deal. The MBT-2000 is a battle tank jointly developed since the late 1980s by China and Pakistan . China has sold the tank to various armed forces around the world.



    Garcia said, "Buying Chinese tanks was the right decision: They have an attractive price for Peru and modern technology. Thanks to President Hu Jintao we've managed a significant drop not in the price but in the downpayment and installments," he added.



    Peru's other purchase, Super Toucan planes from Brazil 's Embraer company, will be deployed to help fight cocaine trafficking through Peruvian parts of the Andean and Amazon regions. Remarkably, though, that deal has a Chinese twist, too.



    Embraer Thursday signed a wide-ranging deal with China that will give the Brazilian aircraft manufacturer access to $2.2 billion to fund the manufacture and sale of regional jets in Asia .



    The loan from China 's CDB Leasing Co., a unit of state-owned China Development Bank, will provide funding to airlines in China and Asia . China may also buy jets directly from Embraer, Brazilian officials said.
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    Someone (probably from its army) made a clip of the tanks Peru recieved. There's some interior views.
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