In early 2022 the European
Union (EU) banned China from exporting submarines that included Germany’s MTU diesels. China's Song and Yuan-class SSKs for its own navy each have used three or four MTU 396s for
years. MTU has several diesel factories in China (eg. in Suzhou).
Quiet submarine diesels take decades to develop, putting countries like Germany, which has relied on diesel submarines since 1914, way ahead of competitors, like China. China only began building diesel subs in the 1960s.
The ban on MTUs for China’s
new submarine exports became public in April 2022 when Thailand said it wouldn’t
accept 3 Yuan-class subs if they don't include the MTU diesels that China promised under contract. This is still
the situation in early June 2022.
China has asked Thailand to
alter the contract to allow China to substitute the MTUs with Chinese-made (possibly reverse-engineered) MWM 620s which
China claims are of comparable quality. But Thailand is sticking to the contract’s MTU delivery terms.
The EU has long officially banned weapons exports, including components like submarine diesels
to China, but European exporters and China have worked together to find
loopholes around such bans.
The EU clampdown on such
exports might amount to secondary economic sanctions against China due to China’s unhelpfully neutral position to Russia’s invasion of Ukraine. Tied to that is
growing EU awareness of ongoing Chinese threats against Taiwan and China’s
aggressive stance in the South China Sea and Pacific.
European submarine
exporters might also see China as unwanted competition for submarine markets
like Thailand. As German made MTUs are the worlds most common, tried and
tested submarine diesels their existence in Chinese submarines would assist
China in beating Germany’s own submarine export activities.
Other European sub
exporters like France, Sweden and soon Spain would also suffer. South Korea is
another exporter and Japan a potential one that would both prefer China was not
so competitive.
The US, concerned about Ukraine and Taiwan, may have pressed
for the EU export bans against China be honoured by EU countries.
It remains to be seen
whether China plans to put MTUs in the 8 Yuan class subs being built for Pakistan. If China is planning to use MTUs will the EU also ban such a move?
Welcome to the real life of export China. I fully support your point about unwanted competitors. European governments win if their industry exports submarines abroad because they keep knowledge in the full supply chain. Selling individual but critical components to the Chinese competition seems kind of stupid.
ReplyDeleteHow does one ban China from exporting MTU's? EU says stop, China say F*** you, and exports it. China already has the factories.
ReplyDeleteAndrew
ps: The CCP version of the diesel engine must be quite poor for the Thai to not accept it, imho.
China sees value in respecting MTU licence conditions because once the Ukraine War dies down MTU will (most probably) again pass on ever better MTU submarine diesels to China.
ReplyDeleteeg. MTU 4000s specifically tailored to Yuan SSKs and post Yuan SSKs.
The best SSK diesels out there are MTU & MAN. Both are German. Next is probably Kawasaki (Japan). There are not many high quality alternatives. This is not like surface ships. How many submarines are launched each ? How many surface ships? Submarines have weird operating environments. All three of the above have modified submarine only versions. When it comes to China, the idea of dual use really needs to be re-examined. Plus the possibility that CCP will nationalise these plants. Too much chasing profits, not enough thinking my kids will inherit this.
ReplyDeleteHi Anonymous [Jun 10, 2022, 11:34:00 PM]
ReplyDeleteThe attraction of profits from China might justify European diesel builders supplying submarine diesel tech and helping build factories in China to produce them. Rolls-Royce involvement? https://en.wikipedia.org/wiki/MTU_Friedrichshafen
It is also possible that Sweden contributed to Stirling engine AIP tech now used in China's Yuan subs.
For all intents and purposes factories in China making critical weapons and components can be considered under the control of the CCP.