Chinese Arms Sales Monthly Snapshot

Prepared by the RAND Corporation

Monthly Snapshot

April 2022

A military vehicle carrying a Pterodactyl I unmanned aerial vehicle drives in Beijing, China. Photo by REUTERS/Jason Lee

A military vehicle carrying a Wing Loong-I ("Pterodactyl") unmanned aerial vehicle / Photo by REUTERS/Jason Lee

The Chinese Arms Sales Monthly Snapshot features open-source material on Chinese advanced conventional weapons sales during March 2022. The RAND Corporation seeks credible open-source material but does not verify the content of the open-source material on Chinese arms export sales to foreign government officials, non-governmental subject matter experts, and media outlets. Chinese arms exports are an important element of its growing military power and geopolitical influence. This activity is supported with funding from the U.S. Department of State.

Selection: Open source materials are selected for the Monthly Snapshot based on analyst judgement to illustrate the diversity of sources, regions, and weapons systems.

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Chinese Military Systems Export Marketing and Sales

Chinese Defense Sector

Chinese Defense Sector and Weapon System Issues

Measures Impacting Sanctions

Chinese Military Systems Export Marketing and Sales

When the Situation in Russia and Ukraine Deteriorated, China Quietly Made an Arms Trade, and 12 Aircraft Were Purchased

March 01, 2022 | NetEase

China took advantage of the deteriorating situation in eastern Europe to quietly make a deal between China Aviation Technology Import and Export Corporation (CATIC) and the UAE for the sale of 12 L15 light attack fighter jets. The UAE also indicated its intent to purchase 36 additional such aircraft in the future.

Chinese and Saudi Firms Create Joint Venture to Make Military Drones in the Kingdom

March 09, 2022 | Defense News

China and Saudi Arabia announced their plans to jointly develop a research and development center and manufacture various UAV systems. China Electronics Technology Corporation (CETC) will oversee the joint venture, Aerial Solutions, and the creation of teams to develop electric-powered vertical-takeoff-and-landing (VTOL) drones, anti-drone solutions, helicopter products, and radar systems.

China Is Selling Thailand a Submarine. Problem Is, No Engines.

March 14, 2022 | The Wall Street Journal

An EU arms embargo that followed the 1989 Tiananmen protests is preventing the export of German diesel engines required for China's $410 million S26T submarine deal with Thailand and, potentially, Pakistan. Both Pakistan and Germany refused to comment on whether or not the China-Pakistan submarine deal also hinges on German engines.

What the United Arab Emirates Sees in Huawei

March 26, 2022 | National Interest

The UAE's expanding military and technological cooperation with China includes the acquisition of Huawei's 5G network services by Emerati telecom companies du and Etisalat. The joint China-Emirates Science and Technology Innovation Lab (CSET) recently exhibited China's Golden Eagle CR500 helicopter drone and MR40 UAV. The article reports the UAE plans to purchase at least 10 CR500s and 20 MR40s.

Chinese Military Industry Products Showcased at DSA 2022 in Kuala Lumpur

March 29, 2022 | China Military Online

On March 28th, the 17th Defense Service Asia Exhibition (DSA 2022) was held in Kuala Lumpur. This year's theme, "Advancing into a New Era of Defense and Security," focused on the "diverse threats which require closer cooperation" among ASEAN nations. The Exhibition was attended by China Aerospace Long-March International Trade Company, China Shipbuilding Trading Company, China Electronics Technology Group, Poly Technologies Inc., and other Chinese defense entities.

Chinese Drones Come With Political Baggage But Ukraine Buys Thousands Anyway

March 31, 2022 | Forbes

Ukraine's deputy prime minister said Ukraine had purchased 2,372 Chinese-made DJI quadcopters and 11 military unmanned aerial vehicles for $6.8 million for its fight against Russia. The purchase utilized the donation-based Come Back Alive fund, in place since Russia's annexation of Crimea in 2014.

Chinese Defense Sector

The Market Demand for Military Drones Expands, and AVIC Drones Fly to the Science and Technology Innovation Board

March 02, 2022 | Zhitong Financial Network

On February 25, 2022, the Shanghai Stock Exchange released the annoucement of the Science and Technology Innovation Board, the Shanghai Stock Exchange announced the initial launch of AVIC (Chengdu) Unmanned Aerial Vehicle Systems Co., Ltd. "(AVIC UAV") to meet increasing global demand for AVIC UAVs, including the Wing Loong-1, Wing Loong-1D, Wing Loong-2 and other Wing Loong series UAV systems.

3 Possible Futures for China-Russia Military Cooperation

March 11, 2022 | The Diplomat

This article explores three possible "futures" of China-Russia military cooperation, including a continuation of the status quo, weakening ties, and stronger cooperation. The article notes the growth or decline of Sino-Russian technical cooperation, including arms sales of aircraft engines and joint development of heavy-lift helicopters such as the AVIC Advanced Heavy Lifter, as an influential factor in the bilateral partnership. Other potential limiting factors include Russian concerns over Chinese reverse engineering, competition in foreign arms markets, and the increasing indigeneity of China's military industry.

Chinese Navy Growth: Massive Expansion of Important Shipyard

March 15, 2022 | Naval News

Ongoing construction efforts aim to expand Shanghai Hudong-Zhonghua's shipbuild area by around 50%. The U.S. Navy believes China is using the yard to construct its third aircraft carrier, the Type-003, and may look to construct additional, nuclear-powered carriers there as well. In addition to the construction of numerous other warships at the Hudong and Jiangnan shipyards, analysts believe construction of the new site may have been motivated by export orders of China's Type-054A frigate getting in the way of PLAN construction at the existing shipyard in Shanghai.

China and Russia's Military Relationship Likely to Deepen With Ukraine War

March 21, 2022 | Washington Post

This article states "the Kremlin's reliance on China after its Ukraine invasion could accelerate nascent joint technology development and operations." It highlights that "after decades of China primarily buying arms from Russia, rapid advances in China's military industry have balanced out the relationship, with some Chinese technologies beginning to surpass Russian counterparts."

Chinese Defense Sector and Weapon System Issues

Military Experts Mock Chinese "Low-Quality" Hardware for Russia's Sluggish Progress to Sweep Ukraine, Seize Kiev

March 08, 2022 | EurAsian Times

Military experts have called out poor-quality Chinese-made equipment, such as YellowSea YS20 tires and military radios, as one of the reasons behind the logistical problems Russia's military has faced in Ukraine. Some experts attributed Russia's procurement of low-quality Chinese components to corruption and efforts to cut costs.

Pak Fails to Intercept India's Missile, Unease in GHQ

March 12, 2022 | Sunday Guardian Live

An unarmed BrahMos supersonic missile, accidentally fired into Pakistani airspace by India, raised questions as to why it was not intercepted by Pakistan's Chinese-made HQ-16 or HQ-9 air defense systems.

Measures Impacting Sanctions

U.S. Warns Europe That Russia Wants Armed Drones from China

March 14, 2022 | Bloomberg

Following a meeting with Chinese diplomat Yang Jiechi, U.S. officials warned European allies that Russia had requested support from Chinese drones at the outset of its invasion of Ukraine. This article highlights AVIC's newest GJ-11 and WZ-7 UAV systems, exhibited at recent arms expos, as illustrations of China's confidence in the international market demand for its newest military technologies.

Did Putin's Invasion of Ukraine Damage Russia's Ability to Sell Weapons?

March 27, 2022 | 19FortyFive

This article discusses how Russia's invasion of Ukraine threatens one of its main two export products: energy and weapons. The war will likely transform the global arms export market, with China benefiting from Russia's further isolation. Some countries, such as India and Vietnam, cannot purchase arms from China for various reasons. These countries have been slowest in joining the international condemnation of Russia's actions.

China Reverses Roles in Arms Trade with Russia

March 29, 2022 | Financial Times

U.S. intelligence officials, Russia requested military assistance from China to aid its ongoing fight in Ukraine, despite denials of this claim by both China and Russia. Russia reportedly requested surface-to-air missiles, drones, intelligence-related equipment and armoured and logistics vehicles. Prior to Russia's invasion of Ukraine, as part of its "normal military-technical co-operation" with China, Russia reportedly imported a batch of Haval off-road vehicles, drone components, and naval diesel engines from China.

Contacts

John V. Parachini

johnvp@rand.org

Senior International and Defense Researcher

Chandler Sachs

csachs@rand.org

Research Assistant

Tristan Finazzo

tfinazzo@rand.org

Research Assistant

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This monthly snapshot is part of a U.S. government foreign assistance effort to help countries comply with U.S. and international sanctions associated with the purchase of Chinese advanced conventional weapons.

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