Chinese Arms Sales Monthly Snapshot

Prepared by the RAND Corporation

Monthly Snapshot

July 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 Pterodactyl I 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 June 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

Chinese Military Systems Export Marketing and Sales

Having Visited Pakistan and China, Is Argentina Ready to Buy the JF-17 Jet?

June 24, 2022 | Defense News

This article looks at Argentina's possible acquisition of the JF-17 aircraft from Pakistan and China, noting "despite China’s willingness to help fund an acquisition program, it’s unclear if any major progress was made." Argentina reportedly discussed possible local assembly of the aircraft and local production of certain parts, and one analyst noted that "Chinese-backed local assembly and production 'would add political incentive to Uruguay, Peru, Ecuador, Bolivia, Venezuela and perhaps Cuba to consider this low-cost fighter.'"

PNS TAIMUR Commissioned at Hudong Zhonghua Shipyard, China

June 23, 2022 | Radio Pakistan

PNS TAIMUR, a Type 054 frigate, was commissioned at China's Hudong-Zhonghua Shipyard recently. The head of Pakistan's Navy Mission in China "praised the concerted efforts made by China State Shipbuilding Corporation, China Shipbuilding Trading Company, China Ship Development and Design Centre, HZ Shipyard and PLA for the landmark achievement by timely delivery of the well-equipped and potent Frigate."

Pakistan Look Forward to Collaborate With Argentina in Defence Production Sector: Tareen

June 15, 2022 | Pakistan Today

The head of Argentina's armed forces met with Pakistan's Minister for Defence Production, where the two sides discussed "potential for extensive collaboration in the field of defence production in the future." This meeting comes as Argentina is considering the China- and Pakistan-made JF-17 fighter aircraft. Argentina's officials recently visited China's National Aero-Technology Import & Export Corporation (CATIC) to further evaluate the aircraft.

Philippine Ground Forces Accepted a Batch of Chinese and Russian Trucks (СВ Филиппин приняли партию грузовых автомобилей китайского и российского производства)

June 14, 2022 | TsAMTO

The Philippine Ground Forces have received a batch of staff and tactical off-road trucks, including two Russian GAZ-3308 Sadko and seven Chinese Dongfeng personnel transport vehicles.

Chinese Defense Sector

The World’s Biggest Surveillance Company You’ve Never Heard Of

June 22, 2022 | MIT Technology Review

This article looks at Hikvision, one of the world's largest surveillance system companies, and its ties to the Chinese government. Hikvision was founded by engineers from CETC and eventually "transferred 48% of its shares to CETC, making Hikvision officially a subsidiary of a state-owned firm." Hikvision reportedly has "over 600,000 Hikvision networks" in the U.S. and has 55,455 in London alone.

Ukraine War Videos Draw a Crowd at Eurosatory Weapons Show

June 17, 2022 | Defense News

At France's Eurosatory arms expo, China was present with an exhibit by "China North Industries Corporation, the state-run manufacturer and another of the world’s largest contractors."

Norinco Offers Bolivia Maintenance Services for Heavy Equipment (Norinco ofrece a Bolivia servicios de mantenimiento para equipo pesado)

June 17, 2022 | Info Defensa

Officials from Bolivia's armed forces recently met with China North Industries Group Corporation, who submitted various proposals for acquisitions and projects. Bolivia has acquired several military systems from China in the past.

China Looking to Invest in Malaysia's Drone Technology, Says Dr Wee

June 17, 2022 | The Star

Malaysia's Minister of Transport stated that "China's Aerospace and Science Industry Corporation (Casic) is interested in investing in Malaysia's high-tech drone industry." The minister reportedly met with "Shenzhen Casic Guanghu Ltd general manager Eng Fox Yang and international business marketing director Frank Feng at the Transport Ministry."

No Matter How Ukrainian Crisis Ends, China’s Arms Giants Are Always Winners?

June 11, 2022 | Modern Diplomacy

Following Russia's invasion of Ukraine, defense spending by Middle East and African nations is expected to increase, and "experts claim that heavy demand for Chinese arms and ammunitions is expected from several countries including Middle-Eastern and African countries...given that several countries are set to spurn Russia to avoid consequent sanctions and may look at China for arms supplies." The article highights a RAND study which found "a lack of transparency and accountability" in Chinese defense contracts.

Chinese Firm That Accused NSA of Hacking Has Global Ambitions

June 01, 2022 | Washington Post

Chinese cybersecurity and technology firm Qi An Xin Technology Group, which has "ambitions of becoming a global cybersecurity giant," accused the NSA of a hacking campaign. The article cites a report from "Avic Securities" which notes this military and security contractor for the Chinese government "has some business outside the Chinese mainland that includes providing cybersecurity services for the overseas operations of Chinese companies and banks in places such as Southeast Asia, the Middle East and Africa." Avic Securities appears to be a brokerage firm that is part of AVIC.

Chinese Defense Sector and Weapon System Issues

Pakistan Navy’s "Made in China" Warships Are Failing to Fire Missiles; US Security Expert Decodes the Flaw

June 20, 2022 | EurAsian Times

Pakistan's naval forces are reportedly "facing problems with at least four of its Chinese-made multi-role frigates." Problems with the ship were related to issues with marine engines and sensor systems. The article notes that there were earlier issues with the JF-17 fighters that Pakistan fields, among other systems.

Thai Navy Still in Tough Talks With Chinese Firm Over Submarine Engines

June 16, 2022 | The Nation Thailand

Thailand's Navy is still in negotiations with China Shipbuilidng and Offshore International Co. over the submarine agreement, "as the company is unable to acquire the German-made diesel engines stipulated in the purchase contract." The article claims the "Royal Thai Navy (RTN) has denied speculation its deal with a Chinese submarine maker would be cancelled or revised."

Measures Impacting Sanctions

U.S. Accuses Five Firms in China of Supporting Russia's Military

June 29, 2022 | Reuters

The U.S. government "added five companies in China to a trade blacklist on Tuesday for allegedly supporting Russia's military and defense industrial base." These entities are Connec Electronic Ltd, World Jetta, Logistics Limited, King Pai Technology Co Ltd, and Winninc Electronic.

Western Parts Are No Longer Used! China Confirms the Supply of Aircraft Parts to Russia - Cooperation Has Reached a New Level (Западные детали больше не используются! Китай подтвердил поставку авиадеталей в Россию — сотрудничество вышло на новый уровень)

June 29, 2022 | InoSMI

Russia announced that a large CR929 passenger aircraft co-produced with China would be produced without using any Western parts. Moscow would no longer need any Western components. China also confirmed that it would supply Russia with new parts. The article emphasizes that cooperation between China and Russia in the field of high-precision technologies has reached a new level.

China Softens Blow of U.S. Sanctions on Military Companies

June 02, 2022 | Nikkei Asia

Following US efforts requiring "citizens and entities...divest from China's military-industrial companies...Beijing has mobilized state funds and its capital market to cushion the potential fallout."

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

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis.

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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