Furious Russia Blasts China Over Technology Theft Of Russian Origin

Russian defence conglomerate Rostec has attacked China over unauthorized stealing of Russian military hardware which has ignited tensions between key-allies Russia and China.

Russia has been China’s biggest arms supplier between 2014 and 2018, accounting for 70% of Beijing’s arms imports but rampant Chinese reverse-engineering Russian military hardware has become a major concern for Moscow.

Rostec chief accused China of copying everything from aircraft engines, Sukhoi planes, deck jets, air defence systems, portable air defence missiles, and analogues of the Pantsir medium-range surface-to-air systems.

Even Russia’s most advanced weaponry is not off-limits. Russia sold six of its S-400 anti-aircraft systems and 24 of its Su-35 fighter jets to China in 2015 for $5 billion.

Despite Moscow’s fury over Beijing’s stealing of sensitive technology, it is unlikely to cut back arms sales to China according to experts.  During the 1990s, China obtained-27 fighter jets and S-300 missile systems from Russia and later developed its own J-11 fighter jet and HQ-9 surface-to-air missiles by reverse-engineering Russian designs.

Russia adopted various measures to check the practice. For example, it insisted that China purchase arms in bulk instead of buying just a few samples — a sign that the arms were likely to be reverse-engineered. Russia also pressed for assurances against theft in its contracts, and even tried to obtain royalties from Chinese copies of Russian arms.

But Kozyulin admitted that the measures were far from effective. “We tried combating this problem in a variety of ways, but without much success,” he said.

Russian concern over China’s reverse engineering contributed to a rapid decline in arms sales between the two countries in the mid-2000s. Whereas China accounted for 60% of Russian arms exports in 2005, the figure fell to 8.7% by 2012.

It was only after the Ukraine crisis in 2014 — when Russia began courting China following its estrangement from the West — that the arms trade and military cooperation between Moscow and Beijing picked up again.

Today Russia has come to accept China’s technology theft as the inevitable price of doing business with its southern neighbour, explained Vasily Kashin, a senior fellow at the Institute of Far Eastern Studies of the Russian Academy of Sciences.

J-11A, a reverse engineered Su-27.

“[Technology theft] is a shared problem for all companies who do business in China, but there haven’t been any cases of reverse engineering causing anyone turning away from the Chinese market — the most valuable market in the world,” he said.

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HQ-16, a copy of Buk SAM.

Kashin added that Russia now feels Chinese reverse engineering is not all that threatening. He argued that even if Beijing successfully copies the arms, Russia will still retain its technological edge.

“It’s impossible to copy some technologies in a reasonable amount of time,” Kashin said. “Copying old technology takes the same amount of time as developing new technology. It’s much easier to take China’s money, invest it in our own development, and let the Chinese do whatever they want.”

Shenyang J-15, a copy of Su-33

The burgeoning Moscow-Beijing geopolitical partnership has also helped ease Russian fears about the risks of arming China.

“If we look at how the Chinese are building up their military, we see that they are constantly cutting ground forces while strengthening their navy. That tells us something about their intentions; that their growing military power is aimed at America and its allies,” Kashin said.

HQ-9A, a copy of S-300 SAM

But there are other concerns. China’s emergence as a major arms exporter in its own right, fueled by decades of high military spending and reverse engineering of foreign technologies, represents both “a crisis and an opportunity” for Russia, contends Arms Exports’ Frolov.

VT-4 Tank, acopy of T-90 chassis, engine and with M-1 Abrams looking turret.

“On one hand, Russia is concerned that China will gradually squeeze Russia out of its traditional arms markets,” he said. “But on the other hand, China has money and a desire to cooperate, so this might be an opportunity for Russia to advance with the help of Chinese money and technology.”

Another challenge for Moscow will be keeping China interested as an arms partner, Kozyulin said. He noted that China’s military-industrial complex has already surpassed Russia’s in a number of areas.

“It’s becoming increasingly difficult to offer China anything new, so Russian policy is to move away from arms sales to joint development,” he said. “I don’t know to what extent this new model will interest China since it prefers to make everything on its own and only imports technologies from abroad. But Russia will try to find mutual interests and understanding

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