Why US Should Sanction Chinese Defense Entities?

Four listed Chinese arms makers produced $54.1 billion worth of weapons, surpassing the $37.7 billion in weapons sold by 10 Russian companies.

406,195 people have died so far from the coronavirus COVID-19 outbreak as of June 08, 2020, 04:30 GMT. Coronavirus has been a Chinese export to global population.

There are more sinister exports to global conflict, that is Chinese OBOR. The ‘One Belt, One Road’ (OBOR) initiative is a Chinese economic and strategic agenda by which the two ends of Eurasia, as well as Africa and Oceania, are being more closely tied along two routes–one overland and one maritime. Supporters suggest that the initiative permits new infrastructure and economic aid to be provided to needy economies. Critics claim that it facilitates Chinese economic and strategic domination of the countries along these routes.

China’s debt diplomacy in the name ‘One Belt, One Road’ (OBOR) initiative worked very well. China will build roads, highways, bridges, convention centers, hotels, sea ports, containers terminals, and powerplant with line of credit from Chinese government if the debtors buy Chinese arms.

The quality of Chinese arms are always brings questions of IP theft and reverse engineering, but, as far as exports concerned African and Southeast Asian countries will always give up to grease payments and debt diplomacy.

China has leapfrogged Russia to become the world’s second-largest arms producer, according to revised research for the year 2017 published by the Stockholm International Peace Research Institute (SIPRI) on Monday.

China has exported SY-400 SRBM to Qatar and Myanmar. SY-400 were paraded at nation day in Doha, Qatar.

SIPRI had previously excluded Chinese arms companies from its annual ranking over a lack of transparency, placing Russia second behind the United States in weapons production in 2017. 

Chinese Military Ambition in Dokhlam Border near India

SIPRI’s new research based on what it says is credible financial information estimates the scale of China’s 2017 weapons production at $54.1 billion. 

The $54.1 billion worth of weapons sold by four listed Chinese arms makers surpasses the $37.7 billion worth of weapons sold by 10 Russian companies that year, it said. 

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Wing Loong II UAV exported to Libyan National Army.

Three of the largest Chinese companies would have been ranked in the top 10 in 2017, downgrading major Russian arms producer Almaz-Antey to the 13th spot.

Sales by the world’s 20 largest arms companies, including Almaz-Antey and the four newly included Chinese companies, totaled $284.1 billion that year, according to the revised figures. 

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VN-1 IVF displayed at Gabon National Day Parade.

SIPRI said China’s opaque arms industry is likely larger than estimated, adding that its report lays the groundwork for further research. 

“This research represents the most comprehensive picture of Chinese companies’ weapons production to date,” the think tank said in a press release.

Chinese major arms exporters were Aviation Industry Corporation of China (AVIC), the country’s largest aircraft producer; China Electronics Technology Group Corporation (CETC), the leading electronics and components maker for military products like radars and software; China North Industries Group Corporation (NORINCO), which makes land systems; and armored vehicle producer China South Industries Group Corporation (CSGC).

CASC – China Aerospace Science and Technology Corporation (CASC) manufactures CH-4 and Wing Loong II Drones. Six of these drones were reportedly purchased by Jordan to be supplied to Field Marshal Khalifa Belqasim Haftar, the commander of the Libyan National Army, it now appears the UAVs are for another customer as the Jordanian delivery to the Haftar militia happened in the last week of March 2020. The drones have been delivered to Jordan before that.

Norinco – China North Industries Group Corporation (NORINCO) was eighth on the global list for 2017, with sales of US$17.2 billion, making it China’s second biggest arms company, according to SIPRI.

AVIC – Aircraft and avionics group Aviation Industry Corporation of China (AVIC) would rank as the sixth largest arms producer, with estimated 2017 sales of $20.1 billion

Chengdu – The Chengdu Aircraft Industry Group (CAIG) or Chengdu Aerospace Corporation (CAC), a subsidiary of AVIC, is a Chinese aerospace conglomerate that designs and manufactures combat aircraft and is also a manufacturer of aircraft parts. The Chengdu Wing Loong II is used by UAE to perform airstrike against the Government of National Accord in Libyan civil war.

China State Shipbuilding Corporation (CSSC) – The China State Shipbuilding Corporation (CSSC) is the largest shipbuilding conglomerate in the world. Headquartered in Beijing, the CSSC handles mostly shipbuilding activities in China.

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The Type 056 (NATO code name: Jiangdao class) is a class of light frigate designed for patrol, escort, and other general roles in coastal waters. Over 40 hulls in the class have been launched at four shipyards since 2012 for both domestic use and foreign customers. An improved Type 056A with enhanced anti-submarine warfare (ASW) capabilities was introduced in 2015.

CSSC is one of the top 10 defence groups in China, consists of various ship yards, equipment manufacturers, research institutes and shipbuilding related companies, some of the well known shipbuilders in China such as Jiangnan Shipyard and Hudong–Zhonghua Shipbuilding are currently owned by CSSC.

The CSSC is responsible for commoditization of warship, and exporting to Pakistan, Thailand, Bangladesh, Myanmar and Nigeria.

China Electronics Technology Group Corporation (CETC) – China Electronics Technology Group Corporation (CETC) had estimated sales of $12.2 billion, respectively, a spokesperson for the SIPRI said. CETC supplied air defense radar to Syrian Regime.

China South Industries Group Corporation (CSGC) – China South Industries Group Corporation (CSGC) had estimated sales of $4.6 billion.

Libyan and Syrian Conflict

CH-4 and Wing Loong II Drones were reportedly purchased by Jordan and UAE respectively to be supplied to Field Marshal Khalifa Belqasim Haftar, the commander of the Libyan National Army, it now appears the UAVs are for another customer as the Jordanian delivery to the Haftar militia happened in the last week of March 2020. The drones have been delivered to Jordan before that.

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CH-4 UAV exported to Saudi Arabia, Pakistan, UAE, Myanmar, and Iraq.

Chinese Small Arms and armored vehicles were purchased by Saudi Arabia and Egypt to be supplied to the Libyan National Army.

China reportedly supplied air defense radar and armored vehicles to Syrian regime.

Cybersecurity Concern

The Australian Civil Aviation and Safety Authority is installing drone detection technology at Sydney Harbour and Australian airports, hiring a company the United States has previously warned could contribute to cyber attacks.

CASA has opted for a Chinese-developed technology called DJI Aerospace despite official US concerns the company could be sending drone-harvested data back to Beijing.

A Chinese FC-31 fighter has its test flight ahead of the 10th China International Aviation and Aerospace Exhibition in Zhuhai, South China’s Guangdong Province, Nov 10, 2014. FC-31 is believed to be the result of cyber espionage and IP theft.

Chengdu Aero-Engine Factory was directly involved hacking Pratt-Whitney and GE engines and software through cyber espionage. A Chinese group named Propulsion Panda was responsible for attacking General Electric manufacturing factories.

Australian and U.S. officials confirmed this week that an unnamed Australian defense firm involved in developing the F-35 fighter jet was hacked in November of 2016. The attackers, who may have been Chinese, stole large amounts of data on the F-35 and other vehicles and munitions.

A spokesman for the F-35 program told Defense News that the breach did not compromise any classified data. However, the data has been described by Australian authorities as commercially sensitive, and as including detailed schematics.

5G and Intellectual Property Theft

The Trump administration argues Huawei should be banned from playing a part in building next generation superfast 5G wireless networks.

The device is made by ZTE a Company that US security services banned because of security risks similar to what is associated with Huawei products that have been banned by the Australian Federal Government.

The United States government is cracking down hard on Huawei. Lawmakers and intelligence officials have claimed the telecommunications giant could be exploited by the Chinese government for espionage, presenting a potentially grave national security risk, especially as the US builds out its next-generation 5G network. To meet that threat, officials say, they’ve blocked government use of the company’s equipment, while the Justice Department has also accused Huawei’s chief financial officer of violating sanctions against Iran, and the company itself of stealing trade secrets.

South China Sea Hostility

Earlier this month, a Chinese surveillance vessel rammed and sunk a Vietnamese fishing boat in the South China Sea — bringing into the spotlight Beijing’s multi-year assertions in the disputed waters.

Source CNBC

Further mistrust between the U.S. and China is unnecessary at a time when countries globally should be working together to fend off a fast-spreading coronavirus disease, said Susan Thornton, a lecturer and senior fellow at Yale University’s law school.

Following the sinking of the Vietnamese fishing boat, the U.S. hit out at China, saying it’s “seriously concerned” by reports of what Beijing did. 

“This incident is the latest in a long string of PRC actions to assert unlawful maritime claims and disadvantage its Southeast Asian neighbors in the South China Sea,” the U.S. Department of State said in a statement, referring to China’s formal name, People’s Republic of China.

“We call on the PRC to remain focused on supporting international efforts to combat the global pandemic, and to stop exploiting the distraction or vulnerability of other states to expand its unlawful claims in the South China Sea,” the statement read.  

Chinese Naval Base Under The Hood of Sea Ports

Gwadar Port is situated on the shores of the Arabian Sea in the city of Gwadar, located in the Pakistani province of Balochistan. The port is located 533 km from Pakistan’s largest city, Karachi, and is approximately 120 km from the Iranian border.

A Pakistani soldier patrols at Gwadar port, 700km west of Karachi. Photo: AP
A Pakistani soldier patrols at Gwadar port, 700km west of Karachi.

Recent developments concerning Pakistani involvement in the China-Pakistan Economic Corridor (CPEC) highlight the growing unease many Pakistanis have with the project’s potential effects on their economy. The newly elected prime minister, Imran Khan, has raised concern over Pakistan’s over-reliance on foreign debt, and now his government seems to be thinking more carefully about CPEC projects than the previous administration. Yet, a crucial part of CPEC is still being overlooked by the Pakistani government but warrants attention – namely, the Port-Park-City model that China is pursuing in Gwadar, which could have undesirable consequences for the country.

China is establishing sea ports in Myanmar deporting almost one million Rohingya to neighboring Bangladesh and orchestrated mass ethnic cleansing by Burmese military. China was the sole supplier of military equipment to Burma.

China has signed a framework agreement with Myanmar to develop a new deep-sea port in Myanmar’s Kyaukpyu town, which is situated along the Bay of Bengal. The deal follows years of negotiations associated with funding and other issues.

Along the Bay of Bengal on the west tip of Myanmar, the town of Kyaukpyu in Rakhine State sits tranquilly on a 25-meter deep harbor.

This deep-sea port, surrounded by superb natural conditions, could be developed into another demonstration project under the framework of the Belt and Road Initiative (BRI), mutually benefiting both Myanmar and China.

Local residents' houses in front of buildings of a Chinese oil pipeline project (pink roof) on Madae island, Kyaukpyu township, Rakhine state, Myanmar. The wider project, part of China's One Belt, One Road initiative, envisions twin oil and gas pipelines, a deep sea port and special economic zone. Photo: Reuters/Soe Zeya Tun
Local residents’ houses in front of buildings of a Chinese oil pipeline project on Myanmar’s Made island in Kyaukphyu. Myanmar’s US$1.3 billion Kyaukphyu deep-sea port project, a China-backed scheme under Beijing’s Belt and Road Initiative (BRI), is one small step closer to realization.

During Chinese President Xi Jinping’s state visit to Myanmar on Jan. 17-18, the two sides agreed to strengthen their BRI cooperation, and work hard to push forward the construction of the Kyaukpyu Special Economic Zone (SEZ), according to a joint statement issued by the two countries on Saturday.

CAATSA Should Be Implemented Now

The U.S. blacklisted another 33 people and entities associated with the Russian military and intelligence, adding them to a list under the 2017 law, known as the Countering America’s Adversaries Through Sanctions Act, or CAATSA.

CAATSA also seeks to punish Russia for its aggression in Ukraine and involvement in Syria’s civil war.

The Trump administration imposed sanctions on the Chinese military on Thursday for buying fighter jets and missile systems from Russia, in breach of a sweeping U.S. sanctions law punishing Moscow for meddling in the 2016 U.S. election.

The US should amend CAATSA act and implement CAATSA on Chinese military entities and immediately withdraw export license for Leap-1C engine to China for COMAC C919 aircraft.

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