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Free gifts with arms sales: China dangles hi-tech offers in crowded global military marketplace

Chinese munitions firms are bundling in some of their cutting-edge hardware and services with purchases as global competition for buyers heats up

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China’s submarine deal with Thailand includes the transfer of some of the Chinese military’s shipbuilding technologies, a according to a military insider. Photo: Handout

Chinese munitions makers and sellers are sharing some of their top military hardware and knowledge with overseas buyers, and improving after-sales services as the manufacturers try to hang on to market share in an increasingly competitive arms market.

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In the most recent deal, state-owned China Shipbuilding Industry Corporation (CSIC) and the Royal Thai Armed Forces agreed late last month to collaborate on development of military equipment and technology.

The deal follows the Thai government’s decision last year to spend US$393 million on Chinese submarines.

A Chinese military insider told the South China Morning Post that the sub deal included the transfer of some of the country’s patented shipbuilding technologies such as submarine manufacturing intellectual property (IP). China would also help Thailand foster shipbuilding expertise and become more competitive in the field, the insider said.

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“China is going to sell its advanced air-independent propulsion (AIP) system to the Thai navy. It might also share some of its advanced stealth IP for submarines and warship weapons with Thailand,” the source said, adding that the transfers will depend on Thailand’s shipbuilding standards.

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