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                                    Valentyn Badrak (edt.)
                                     Sergei Zhurets (edt.)
                                      Dmitriy Bogdanov
                                      Vladimir Kopchak
                                      Olga Nabochenko
                                        Alexei Yarovoj




                      Ukraine — China:
                 from Project-to-Project
                     Cooperation to
                  Strategic Partnership




               Published by the Center for Army, Conversion
                        and Disarmament Studies

                                      Kyiv - 2009
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                                                                              Ukraine-China:
        2                        from Project-to-Project Cooperation to Strategic Partnership




               Valentyn                      Sergei
               BADRAK                        ZHURETS




      Introduction.
      Why China?
            In the current situation — whereby       $4.402 trillion (according to IMF data for
      geopolitical scenery around Ukraine is get-    2008), China is wealthy enough to meet its
      ting worse, fundamentally new challenges       huge defense requirement.
      and threats are brought into being,                  In nominal GDP terms, the PRC is
      NATO’s key European players Germany            now the third biggest economy in the
      and France are refusing to further support     world, lagging only the United State and
      Ukraine, and the United States is keeping      Japan. Amidst the ongoing global eco-
      silence over all this — China’s potential      nomic recession, the World Bank revised
      role has risen significantly in the eyes of    its 2009 economic growth forecast for
      Ukrainian military-political establishment.    China to 8.4%, up from the projection of
      The PRC has silently evolved into a pow-       7.2% made in June. China’s economy grew
      erful, almost independent center of influ-     6.1% in the first quarter of 2009, but recov-
      ence on the planet; it has entered the elite   ered to 7.9% in the second quarter and 8.9%
      club of permanent members of the UN Se-        in the third, according to the PRC National
      curity Council, and boasts of having the       Bureau of Statistics.
      world’s biggest military force of 2.25 mil-          At the present stage of civilization’s
      lion. China’s defense expenditure in-          development, amidst complex globaliza-
      creased 14.9% in 2009 to reach well past $84   tion processes, the PRC is set to take upon
      billion – the world’s second largest defense   itself an alternative mission of global pro-
      budget behind that of the United States.       portions. China — who achieved a GDP
      Having the world’s biggest foreign trade       growth at a time of severe global economic
      turnover of $2.5 trillion and a GDP of         slowdown, and increased its foreign trade
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      Ukraine-China:
      from Project-to-Project Cooperation to Strategic Partnership                              3

      turnover by 21% from last year — has              of influence on the Western front. Of
      much to be proud of (the PRC is reported          course, this is simply a matter of specula-
      to have already outpaced Japan by the rate        tion. Even if it is assumed that Beijing
      of economy growth). If this upward trend          chooses to adopt this scenario, it would not
      continues, China surpassing the United            be implemented straightforwardly. Still,
      States as the world’s biggest economy is          such a scenario, in a certain specific situa-
      simply a matter of time. It is projected by       tion, might well become a reality.
      the PRC leadership that the amount of Chi-              Assumption that China’s ambitions
      nese exports would have increased to $5           will certainly grow further could be vali-
      trillion by 2020, with the proportion of          dated by one evident aspect of U.S. foreign
      high-tech products rising to about 50% of         policies. A broad consensus appears hav-
      the projected sum. In addition to this, the       ing been reached among the expert com-
      PRC has huge strategic ambitions for tech-        munity to the effect that a policy of
      nology and geopolitics, its technological         containment of China is one of the funda-
      ambitions having grown to the extent that         mentals of the United States’ foreign pol-
      they became the subject of concern by the         icy, not simply part of it. Success or
      United States and Russia. If, a few years         unsuccess of this American policy will de-
      ago, Moscow did not hesitate to sell Beijing      termine the entire future architecture of the
      an amount of naval versions of the S-300          international relations system. RAND Cor-
      SAM system, today it faces uncertainty            poration, an influential non-profit research
      about the feasibility of supplying the PRC        organization in the United States, contends
      with Su-33 carrier-based fighters. Chinese        that the PRC is the only country in the
      weapons designers have developed a no-            world to be potentially capable to rival the
      torious reputation for successfully repro-        U.S. in the amount and quality of available
      ducing even most sophisticated designs            military resources and to present a virtually
      without gaining copyright permission.             across-the-board high-tech challenge.
            China’s approach to dealing with            RAND experts believe that within a decade
      problematic geopolitical issues appears to        China would be able to supplant America as
      be interesting enough. Suffice it to have a       the dominant military power in East Asia.
      look at PRC’s policies towards Pakistan. In             In the meanwhile, a few recent years
      relations with Islamabad, Beijing appar-          have seen pretty perceptible changes in
      ently took the ‘enemy of my enemy is my           attitudes by some European countries to
      friend’ approach. By persistently reinforc-       cooperation with the PRC, which might
      ing Pakistan, China weakens India and re-         serve as an extra argument in favor of
      duces freedom of maneuver for New                 proposed Ukrainian-Chinese rapproche-
      Delhi. These ambitions by Beijing are what        ment. Some European countries (even
      Kiev is looking at with much interest. On         though the limitations on defense sup-
      the one hand, Ukraine still retains much to       plies to China from the EU continue to be
      offer China with respect to technology. The       effective) began systematic effort to ex-
      other side of that coin is that the possibility   pand their respective arms export quotas
      is not fully ruled out that China’s territo-      for the PRC, this being practiced not only
      rial ambitions and general geopolitical ex-       by Paris but London and Berlin as well.
      pectations with regard to the Far East            These quotas are fully legal since selected
      might spur Beijing to begin actively rein-        weapons types are not covered by the
      forcing Ukraine as an anti-Russian center         Chinese arms embargo.
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                                                                               Ukraine-China:
        4                         from Project-to-Project Cooperation to Strategic Partnership



            Such a situation developing around               Given that the signatory states to the
      China with its consistent and independent        1994 Budapest Memorandum (who as-
      policies, and, also, the rising challenges to    sumed commitments as to Ukraine’s sov-
      Ukraine in whom China has a long-term            ereignty and security assurances) tend to
      interest, all speak of the feasibility and ra-   take less and less account of Ukraine’s in-
      tionale of proposed effort to ensure             terests, this fact can and must become a
      Ukraine’s rapprochement with China in            major reference point in Kiev’s talks with
      politics, technology and economy. Ukraine        the United States. Moreover, Ukraine,
      currently needs assurances of a different        under the umbrella of the Chinese might,
      type and a different format. If neither Rus-     could try and alter it location on the
      sia nor the USA intend to assume that role,      geostrategic map of the region (particularly
      it is essential that Kiev identify "a third      through defense and dual-use technology
      party" who would be interested in a sus-         transfers) and, simultaneously, build up an
      tainably developing Ukraine. Paradoxical         indigenous missile shield powerful enough
      as it may seem, it is China who might po-        to deter potential aggressor of any kind. As
      tentially act as a guarantor of this kind. For   for China, who has in recent years begun
      China itself, in the presence of potential       massive export of weapons and defense
      tensions in relations with the EU in case it     equipment, not only does it visualize
      is pressurized by the United States, a           Ukraine as a technology donor, but, also,
      strong Ukraine integrated into Europe            as a potential large market for its defense
      might be of interest, indeed. There is an        industry products, given that the PRC has
      opinion that China’s interest in Ukraine is      already surpassed Ukraine in the develop-
      exclusively technological, but this is only      ment and production of a whole range of
      true to a limited extent. Of course, Ukraine     defense technologies.
      as a technology donor still retains much to            It goes without saying that a concept
      offer China, most specifically in rocket and     of a Ukrainian-Chinese rapprochement
      aerospace technology. Despite China’s            needs to be thoroughly elaborated and ne-
      multi-year history of cooperation with the       gotiated in detail with the Chinese party.
      Russian Federation, a significant aspect in      Still, for Kiev, this idea looks far more
      potential cooperation between Ukraine            preferable than apprehending an escala-
      and China in critical technology sectors         tion of tensions in relations with the states
      might be that Ukraine and Russia would           poised to ignore national interests of
      offer China technologies that are not com-       Ukraine or disrespect their own security
      peting but, rather, complementing each           assurances once provided to Ukraine in ex-
      other. It might be said with a high degree       change for its nuclear-free status.
      of certainty that China’s interest in Ukraine          In Chinese, the word ‘crisis’ is written
      is partly explained by the fact that Kiev        in two characters meaning ‘danger/haz-
      never attaches any political strings or re-      ards’ and ‘opportunity/chance/’. This
      quirements to joint projects in sensitive sec-   combination could well and fully convey
      tors. Intuitively, Kiev’s forging close          the content of military-political and mili-
      partnership relations wit Beijing in the mis-    tary-technological friendship between Kiev
      sile technology area, i.e. missile warhead       and Beijing for the sake of forging a new
      technology improvement, might cause prob-        relevant strategy.
      lems in its relationships with Washington.
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                                                                         Ukraine-China:
                            from Project-to-Project Cooperation to Strategic Partnership        5

       First chapter
      In search of comprehensive
      assurances



       T
                     he period of 2008-09 proved to       years from now. It could be predicted with
                     be a difficult trial for Ukraine’s   a very high degree of certainty that
                     statehood. A systemic eco-           Ukraine will not join NATO in the next 10
                     nomic crisis, coupled with a         years. If key NATO players in Western Eu-
                     crisis of security system, has       rope, most notably Germany and France,
      become a stimulus for changing a geopo-             continue with their current policies to-
      litical situation on the European continent.        wards Ukraine (i.e. refuse to support
      A research conducted by the Center for              Ukraine’s NATO membership bid), it risks
      Army, Conversion and Disarmament Stud-              being left outside the Western Club and the
      ies (CACDS) revealed a number of adverse            European Values System.
      tendencies that might threaten Ukraine.                  Second, the level of threats has
            For one thing, Ukraine has lost its           changed to the extent that experts began
      value in the eyes of the NATO members               talking about emerging risks to the Ukrain-
      who see in it a buffer strip between the Al-        ian statehood itself. Ukraine, weakened
      liance and Russia. Key European NATO                from within, has long seemed to be a ‘sit-
      players Germany and France have effec-              ting duck’ for some countries. Tough-
      tively refused to back Ukraine's Euro-At-           worded statements by the leaders of
      lantic bids, and there are grounds to claim         Romania, Russia’s voiced territorial claims
      yet no such support for Ukraine on the part         to some Ukrainian regions and open inter-
      of the United States. It’s not a stretch to say     vention with Ukraine’s domestic affairs
      that European players of the North At-              and, finally, surprise and unprecedented
      lantic Alliance have openly retreated in            refusal by Moscow to acknowledge the ex-
      their fight for Ukraine, opting instead for         istence of the Ukrainian nation are all di-
      maintaining smooth and even relation-               rect consequences of a comprehensive
      ships with Russia. All-knowing media                weakening and undermining of the
      sources have been talking everywhere                Ukrainian State. The first losses of the
      about ‘Munich conspiracy-2’ plot. Rhetoric          weakened state were quick to come -- the
      by the new American administration and              de facto loss of Zmeiny Island and the
      the character of the current dialogue be-           shaping of the image of the Ukrainian as an
      tween the United States and the Russian             enemy to the Russian. Neighbors of
      Federation are all warning that Ukraine             Ukraine have an interest in weakening its
      might be ousted to the periphery of Euro-           political influence and defense capability.
      pean developments. In this new situation,           Furthermore, the security assurances pro-
      Ukraine’s effort aimed at gaining for itself        vided by Russia and the United States in
      a place among the European ‘club’ of na-            1994 in connection with Ukraine's acces-
      tions is not expected to pay off until many         sion to the Treaty on the Non-Proliferation
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             Ukraine-China:
        6    from Project-to-Project Cooperation to Strategic Partnership



      of Nuclear Weapons are ineffective now           approach 2017 when the Russian Black Sea
      and will continue so in the future if the sce-   Fleet is to be withdrawn from Ukraine.
      nario is unfavorable to Ukraine. This as-              Third, the Ukrainian Armed Forces’
      sumption might be clearly validated by the       development level has fallen to the lowest
      "Tuzla" conflict [Russian attempt to join the    point ever since independence. The
      Tuzla spit in the Sea of Azov to the Russian     Ukrainian military is in the state of rapid
      mainland], the so called ‘gas wars’ with         deterioration, with military morale declin-
      Russia and the threatening Russian rheto-        ing and carrier officers, not excepting those
      ric itself, as well as the Russian-Georgian      in the General’s rank, voluntarily retiring
      war conflict over South Ossetia. The 1994        by the legions. The military employs
      Budapest Memorandum on Security As-              weapons arsenals and defense equipment
      surances in connection with Ukraine's ac-        inventories that are almost one generation
      cession      to     the    Treaty     on   the   lagging behind those of the leading armed
      Non-Proliferation of Nuclear Weapons             forces of the world in terms of state-of-the-
      provided security assurances for Ukraine         art. Commentators are warning that
      in exchange for it laying down its nuclear       Ukraine’s warfighting capacity is clearly
      arsenal and committing not to use or pos-        not adequate to the current level of military
      sess strategic weapons carriers. Ukraine         threats facing it. The CACS is placing on
      eventually handed over its arsenal of 1,734      record that defense capacity of the State
      nuclear warheads to Russia as demanded           has been brought to total collapse. In all the
      by signatory states to the Budapest Memo-        18 years since independence, Ukraine has
      randum. Obviously enough, the never end-         failed to build an effective battle worthy
      ing feud between political forces in             army. Issues of the military and those of
      Ukraine has effectively brought the coun-        homeland defense have not been ad-
      try to the brink of disaster where it may        dressed as they should be; rather, they
      cease to exist as an independent statehood.      have been fully and systematically ig-
      It’s not a stretch to say that, as we approach   nored. Such an indifference to own armed
      the end of 2009, Ukraine has reached a bi-       forces and their capacity to defend the
      furcation point where its further develop-       country could be explained by the fact that
      ment may, with an equal degree of                the military in Ukraine has always been left
      certainty, go down various tracks -- unidi-      outside the scope of the system of issues
      rectional or opposing one another alike.         over which political opponents can pres-
      Many experts are unanimous in their opin-        surize each other. This system is unique to
      ion that all the prerequisites for a military    Ukraine and comprises the Interior Min-
      intervention into internal affairs of Ukraine    istry, the Prosecutor General’s Office, the
      are in place now. Beginning in 2003, there       court system, the Security Service (SBU)
      has been a rapid growth in the level of          and more organizations. The powers that
      purely military and military-political           be in Ukraine cannot see why they should
      threats whereby the Ukrainian soil may           be concerned about the military if it does
      turn into a theater of military action. This     not bring them any dividends. A manifes-
      threat is becoming particularly imminent         tation of such an attitude is that the Inte-
      as loud voices are being heard demanding         rior Ministry’s budget for 2009, for the first
      that the issue of Ukraine’s nonaligned sta-      time in a few recent years, has surpassed
      tus be brought back on the agenda. The de-       that of the Ministry of Defense
      gree of this threat will steadily grow as we     (UAH8.365bn as against UAH7.4bn).
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                                                                       Ukraine-China:
                          from Project-to-Project Cooperation to Strategic Partnership          7

      Worse still, Ukraine’s Military Establish-       this trend being observed during the fifth
      ment has lost much of its development in-        consecutive year now. Some experts point
      ertia; even three to four years of massive       to an increasing tendency of some coun-
      investment would not bring it up to the          tries to be inclined to use military force for
      best developed armed forces in the region        resolving tasks such as changing world
      in terms of combat effectiveness. In other       order or redrawing the geostrategic map of
      words, it is highly unlikely that Ukraine        the world.
      will be able to rely solely on its armed               With this background in hand 18
      forces any time soon when it comes to de-        years past independence, Ukraine would
      fending its sovereignty and inviolability of     be urgently advised to begin an active
      borders.                                         search of alternative ways to ensure na-
            Fourth, vigorous activities by neigh-      tional growth and secure vital interests of
      boring Russia at the diplomatic, economic,       the State, not excepting those of homeland
      information and social levels, coupled with      defense and national security. In this par-
      the absence of any coherent information          ticular case, orientation to China’s military
      policies by Kiev towards Crimea have             power seems to be well justified.
      brought high on the agenda the self-identi-            China’s military accomplishments are
      fication issue of a substantial portion of the   really impressive. During a military parade
      Ukrainian population in south and south-         celebrating China’s 60th Anniversary na-
      east regions. Against the backdrop of the        tional day on October 1, 2009, Beijing
      absence of a National Purpose, it could be       demonstrated dozens of newest weapons
      placed on record that a substantial part of      and military hardware types that have fun-
      the population are indifferent to whether        damentally changed both the external look
      Ukraine is independent or not. Ukraine’s         and the image of the People’s Liberation
      political establishment has been either in       Army (PLA). Interesting enough, the Chi-
      the grip of an infantile misunderstanding        nese military-political leadership claim that
      of the degree of the threats facing Ukraine      the PLA now rivals armed forces of the
      or remains to be heavily intoxicated by          Western World in terms of state-of-the-art.
      Russian propaganda. One way or another,          This is a very serious claim that could be
      Ukrainian policy makers are clearly              seen as an evidence of China’s global am-
      demonstrating incompetence.                      bitions. The PLA is the world’s biggest
            The above well explains why Ukraine        armed force with 2.25mn active military
      has found itself in a ‘high-risk area’. The      personnel plus a reserve force of 800,000,
      situation is aggravated further by global        followed by the United States with its
      economic recession and deterioration of          1.4mn-member army. But what makes the
      ecological, demographic, energy-related          PLA’s key accomplishment is the level of
      and ethical/moral problems of contempo-          technology intensiveness that has risen
      rary humankind which all brought our civ-        dramatically in the past decade. The PRC
      ilization into a ‘discussion stalemate’ and      has consistently increased its defense
      are stimulating aggressive behavior. Ex-         spending during many years now; in 2004,
      perts and analysts place on record that          for example, China’s officially declared de-
      about 70 percent of all the countries across     fense spending jumped to about $25 billion
      the globe have been increasing their de-         from $22.37 billion in the previous years.
      fense budgets and spending on associated         Some analysts, however, think that the in-
      re-equipment/re-weaponing programs,              crease rate was 11.6 percent. Roughly the
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             Ukraine-China:
        8    from Project-to-Project Cooperation to Strategic Partnership



      same growth rate has been observed in all        its military, especially in the context of its
      the following years up to 2010. Some ex-         space warfare capability enhancement.
      perts, though, believe that total spending       Media reports had it that control of the
      might be as high as $40-45 billion annually      satellite was initially carried out by PLA
      because the official budget doesn't include      Navy’s satellite communication ships and
      funding for weapons programs that are            one of its nuclear-powered submarines.
      normally set on a single line in the budget      The results of the test had never been pub-
      plan. The amount of China’s military ex-         licly announced, but, if it was a success, the
      penditure has always been a subject of se-       Pentagon analysts say this could mean that
      rious concern for the Pentagon. In a 2007        the Chinese military will not have a long
      report, the Pentagon suggested that              way to go to achieve a substantial progress
      China’s actual defense spending might            in improving its ASAT capability.
      amount up to $139 billion, a significant in-           Another area of priority attention for
      crease over the publicly announced figure.       the PLA leaders is the development of its
      In March 2009, Beijing was planning to in-       disruptive warfare capability. Disruptive
      crease its defense spending by 14.9%, up to      warfare is a form of non-traditional, asym-
      $480.686 billion. In this context, a 2009        metric warfare that aims to undermine an
      statement by China’s leadership that its         opponent’s strengths by exploiting weak-
      military arsenal is technologically roughly      nesses. The Pentagon believes that China’s
      on a level with the world’s most advanced        logical strategy is to favor asymmetric ca-
      armed forces looks highly symbolic. In an        pabilities that target and exploit the weak-
      interview whose text is available on the         nesses of China’s militarily superior
      Chinese Ministry of Defense website, De-         opponents, especially the United States, in-
      fense Minister Liang Guanglie said that the      creasing the potential that China can defeat
      PRC has achieved a great milestone in its        them. Information warfare operations, es-
      military modernization endeavor.                 pecially cyber attack operations are attrac-
            Ukrainian experts must not lose sight      tive to the Chinese military as an
      of an issue such as the Pentagon’s concerns      asymmetric weapon in that it is much more
      over China’s anti-satellite and space war-       effective than traditional weapons. PLA
      fare capabilities. U.S. analysts believe that,   analysts believe that the Pentagon has an
      over the next few years, the PLA would           excessive dependence on civilian computer
      have enough technological capabilities in        networks and its NIPRNET unsecured net-
      hand to temporarily incapacitate or destroy      work. It is believed that by attacking these
      American satellites in any potential Sino-       networks the PLA would be able to disrupt
      U.S. military conflict. This concern, based      US force deployments in Asia in a poten-
      on a thorough examination of the results of      tial U.S.-Sino conflict over Taiwan. PLA
      China’s January 2007 anti-satellite (ASAT)       commentators point out that by temporar-
      test, was voiced, especially, by Chairman        ily incapacitating or destroying these com-
      of the Joint Chiefs of Staff Admiral Michael     puter networks the PLA would disrupt
      Mullen. The Pentagon’s concerns are re-          Taiwan’s capability to respond to a possi-
      lated to the launch of China's first lunar or-   ble act of aggression by China and, also,
      biting satellite, Chang'e 1 in October 2007.     would reduce the U.S. potentialities for a
      Analysts believe that this launch was of         rapid intervention into a conflict should it
      paramount significance not only for the          arise. Media reports on that subject had it
      Chinese scientific community but also for        that a disruption of computer networks
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                                                                       Ukraine-China:
                          from Project-to-Project Cooperation to Strategic Partnership         9

      supporting communications, financial            sought to collect information (most partic-
      transactions and energy supply in Taiwan        ularly relevant to economy and defense do-
      would cause a comprehensive panic,              mains), secure own information networks
      thereby forcing Taiwanese authorities to        and the decision-making community, and
      enter into talks with Mainland China.           to uphold national unity.
      PLA’s printed publications consider infor-            Of particular importance to Ukraine is
      mation warfare operations as a pre-emp-         an aspect such as the Chinese experience
      tive weapon to prevent a conflict from          with the development of medium- and
      escalating further. Here, one of priority ob-   short-range missiles. Research and devel-
      jectives in information warfare capability      opment on missiles in this category has
      development is protecting own computer          been underway in China since the early
      networks from hacker attacks. The PLA           1980s. Three groups of missiles have been
      has in recent years begun setting up dedi-      created to date, known by their export des-
      cated research organizations to experiment      ignations M9, M11 and M18. Most widely
      with various information warfare scenar-        fielded variant is the M9/DF-15 – a single-
      ios. Expert research programs in this do-       stage solid-fuel missile that was exported
      main are well financed and an information       to Libya (140 units), Syria (80), Pakistan,
      warfare research and development net-           Iran and Egypt. The PLA Air Force and
      work is being expanded. Interestingly, the      Navy additionally possess a combined ar-
      PLA does not have an official information       senal of 1,500-2,500 cruise missiles. One
      warfare doctrine, neither does it have the      more reason why this experience is of im-
      capability to implement such a doctrine         portance to Ukraine is that the Ukrainian
      should it be there.                             Air Force has an inventory of Soviet-vin-
            American military experts believe         tage tactical missiles. These missiles, whose
      that the information warfare concept cur-       designers left in Russia after the demise of
      rently existing in China does not imply a       the USSR, all need in-service support and
      war in its traditional, Western sense. It is    maintenance by Russian engineers, and
      more targeted at non-military applications,     Ukraine, on numerous occasions, could not
      in contrast to the West where military ap-      reach understanding with the Russian side
      plication of information warfare technolo-      on that issue. Moreover, these arsenals are
      gies is more traditional. This approach to      antiquated by modern standards, and
      warfare offers China a possible solution to     therefore need to be rejuvenated. Here, it
      the disparity between the capabilities of the   must be pointed out that orientation to a
      PLA and U.S. forces, while not requiring        single military-technological cooperation
      China to build a military fully equal to that   partner has already had a detrimental ef-
      of the United States. The objectives of the     fect on military modernization. Ukraine, in
      Chinese information warfare concept are         2005, set for itself a task of developing a
      projected into a far future, decades away       multi-target missile system combining
      from now, unlike an equivalent concept in       medium-range and short-range capabili-
      the United States which is aimed at accom-      ties. Ukrainian designers, while having a
      plishing results ‘right there, right now’.      history in the field of strategic missile sys-
      Many evidences have emerged now rein-           tems, do not have any experience in the de-
      forcing the perception that China is cur-       velopment of tactical/operational missile
      rently conducting a non-Western-type            weapons. For this reason, relevant skills
      information warfare; China has recently         and technology transfers with the PRC
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             Ukraine-China:
       10    from Project-to-Project Cooperation to Strategic Partnership



      would be quite justifiable and feasible. In-    technologies; cooperative research pro-
      tuitively enough, that issue must be ap-        grams; licensed production/co-produc-
      proached with great caution, as some            tion; own scientific-technical initiatives;
      problems may arise here, both in the con-       expansion of indigenous production ca-
      text of limitations stemming from the in-       pacities and modernization of the existing
      ternational Missile Technology Control          defense-industrial base.
      Regime (MTCR) and at the level of rela-               A characteristic of the current PLA
      tionships with the United States. By the        transformation/modernization stage is the
      very fact of seeking such an opportunity in     realization by the country’s military-polit-
      relations with the PRC, Kiev sends a mes-       ical leadership of the fact that the prime
      sage to international community that            role in ensuring national security is as-
      Ukraine deserves better attitude on behalf      signed to the PLA. A number of military
      of the key players of global politics who       operations at the start of the XXI century
      tend to take little if any account of           brought to the fore the issue of a widening
      Ukraine’s vital interests. In recent years, a   technological gap between the armed
      clear shift has become visible in the United    forces of the Western World and those of
      States’ foreign policy, with more priority      the rest of the world. This increasingly
      given to the development of anti-terrorist      widening technological gap spurred the
      warfare capabilities. This has lead to alle-    Chinese leadership to urge the PLA to seek
      viation of the U.S. foreign policy pressure     achieving ‘technological leaps’ in order to
      on the PRC, and, simultaneously, opened         expedite the development of new capabil-
      new vistas for China’s enhancing its global     ities for increased maneuverability, fire-
      profile. This situation could be actively ex-   power and precision of fire by way of
      ploited by the Ukrainian diplomacy in se-       comprehensive informatization of the Chi-
      lecting ways to set up a platform for more      nese armed forces. Chinese analysts also
      intensive, expanded Ukrainian-Sino coop-        believe that the first two decades of the XXI
      eration.                                        century would be a critical period in the
            It must be emphasized here in this        transformation and building of new rela-
      context that by modernizing its military the    tionships between the defense science/re-
      PRC is keen to max out scientific and tech-     search community and arms industry in
      nological advances, creating a backlog of       China. This experience should not escape
      knowledge for many years to come. Fur-          the close examination of Ukraine’s mili-
      thermore, the PLA leadership is seeking to      tary-political establishment, most particu-
      max out the effectiveness of new arms de-       larly in the context of enhancement and
      velopments by integrating into them             reinforcement of the Ukrainian Armed
      breakthrough upstream research achieve-         Forces and orientation to capabilities of
      ments. In such a case, achieving full inde-     own Military Establishment.
      pendence from foreign defense suppliers               The PRC has for many years now
      remains a top-priority objective of the Chi-    been developing cooperation in military
      nese defense industry development. The          technology with the Russian Federation.
      current stage in the Chinese defense in-        This seems to be no impediment to Ukrain-
      dustrial complex development is notable         ian-Sino cooperation, which is evident by
      for an integrated employment of a whole         a high enough level of this cooperation
      set of various measures, including acquisi-     seen today. An important characteristic of
      tion of advanced foreign equipment and          Ukrainian-Sino cooperation in critical tech-
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                                                                        Ukraine-China:
                           from Project-to-Project Cooperation to Strategic Partnership         11

      nology areas is that technologies offered         development of bilateral cooperation be-
      China by Ukraine and Russia have differ-          tween special services.
      ent applications and are, therefore, com-               In forging cooperation with the PRC,
      plementing rather than competing with             one must be mindful that China strongly
      each other. This perception is reinforced by      opposes changing established rules of the
      a pretty high level of cooperation the PRC        game or previous agreements. This atti-
      has maintained with Belarus, this being           tude by China could be well observed from
      boosted further by highest-level contacts         problems emerged in relations with
      between leaders of the two states.                Ukrainian aircraft engine market ‘Motor-
            At the same time, Ukrainian foreign         Sich’, over, as claimed by some observers,
      policy with respect to China has been no-         pricing policy changes. A few years prior
      table for a lack of consistency. Even though      to this, China cancelled its previously de-
      [Ukraine’s defense import/export author-          clared intention to acquire a large amount
      ity] UkrSpetsExport and some major de-            of Il-76 military-transport aircraft from
      fense suppliers, among them Motor-Sich            Russian suppliers, again, because of
      [aeroengine maker] do have their respec-          changes of previously agreed price tags.
      tive representative offices in China, no in-      Also worthy of note is China’s tough atti-
      tensification of contacts has been observed       tude to quality issues of imported defense
      at the top national level. Ex-president           products. If we regard a few recent years
      Leonid Kuchma, for example, paid two of-          of military-technical cooperation, here
      ficial visits to the PRC (one of them in a        Ukraine has at least one negative example,
      two-leg tour that included a trip to Ulan         which is evidence, among other things, of
      Bator). The sitting president, Viktor             the loss of Soviet-era production quality
      Yushchenko has never included Beijing on          standards. In China’s eyes, Ukraine, sad to
      his foreign tour schedules, and visits by         say, still remains to be, to a certain degree,
      Foreign Minister Petro Poroshenko and             a nonresponsive inconsistent partner. One
      Defense Minister Yuri Yekhanurov would            example is that a well thought-out, once
      never have filled in the void in relation-        proven noncash-payment scheme option
      ships with the key state dominating the           did not work out again because the Ukrain-
      Southeast Asian region. Even so, we must          ian government failed to set up a frame-
      not fail to take note that contacts have de-      work allowing a defense exporter to barter
      veloped pretty well at the industry-to-           its products for civilian goods. Not enough
      industry level. Also, expert appraisal of the     clarity is provided with respect to privati-
      existing legal and regulatory framework           zation issues, either. Here, Ukraine cannot
      for Ukrainian-Sino cooperation is favorable       conduct a dialogue at an adequate level,
      enough. There has been active work by the         while concrete questions about business-
      Ukrainian-Sino intergovernmental Mili-            plans or international audit checks have,
      tary-Technical Cooperation Commission             more times than not, been left unanswered.
      co-chaired by first deputy Minister of In-        Furthermore, Ukraine does not seem to
      dustrial Policy of Ukraine. Earlier in 2009,      have felt much urgency to push ahead with
      for the first time in many years, the Chief of    a transparent privatization program for its
      the Ukrainian MoD’s Intelligence Direc-           defense industry companies. On the other
      torate paid an official visit to Beijing, which   hand, China will readily support projects
      was appreciated by the Chinese side as a          targeted at third-country markets. Already
      constructive and useful step forward in the       available positive experience here gives
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             Ukraine-China:
       12    from Project-to-Project Cooperation to Strategic Partnership



      reason to hope for an expansion and fur-         inclined to take fast decision but, rather,
      ther advancement of this area of coopera-        tend to thoroughly examine and weigh in
      tion.                                            the balance all the options available before
            China has always been distinguished        determining an acceptable response. Many
      for a well though-out, balanced foreign          experts believe that China has already
      policy, and it therefore cannot be imagined      launched a cautious advance on Russian
      that the PRC would sign any agreements           interests, but Beijing is very unlikely to go
      providing security assurances to anybody.        for direct confrontation with Moscow. The
      A thoroughly calculated, consistent foreign      important positive side to Ukraine’s rap-
      policy course will stimulate China to be         prochement with China is that it does not
      highly cautious in taking decisions. There       affect or run counter to its rapprochement
      is certain to be no precipitation here. Still,   with Russia. If Ukraine is to have a rap-
      interesting enough, China has a separate         prochement with China, it has to evolve
      program facilitating cooperation with ex-        into a consistent partner, unswervingly ad-
      Soviet states. This program provides for a       hering to previously assumed obligations.
      range of mutually beneficial projects that       Also, further advancement of Ukrainian in-
      could allow participating countries to en-       terests in China calls for a high-level lob-
      hance their defense and technological po-        bying and an intensification of bilateral
      tentialities. An important characteristic of     contacts between the leaders of the two
      the Chinese leadership is that they are dis-     states.
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                                                                      Ukraine-China:
                         from Project-to-Project Cooperation to Strategic Partnership     13

       Second chapter
      Place of Ukraine in the
      China-Ukraine-Russia triangle



      A
                  s the defense market has de-      The PRC, who has vigorously worked to
                  veloped highly dynamically,       bring defense production processes to a
                  it gets pretty difficult some-    commercial level and establish, in the
                  times to draw a line between      shortest possible timeframes, indigenous
                  where mutually beneficial         mass series production of previously im-
      cooperation ends and open competition         ported weapons types and items of de-
      begins.                                       fense equipment, has now been
           When analyzing in quantitative           progressively transferring from the sta-
      terms the level of military-technological     tus of defense importer to status of pow-
      cooperation between countries, it is nec-     erful defense supplier. Here, a tendency
      essary to understand that volumes of de-      could be observed where the Chinese
      fense contracts typically make no             outpace original design developers in
      allowance for close international indus-      putting reverse engineered designs into
      trial cooperation ties where subcon-          production. Simultaneously, original de-
      tracted companies supply subsystems           sign developers who transfer their most
      and assemblies, machinery, or assem-          advanced technology to China would
      bly/repair kits, or replacement parts.        have had little time left to produce new
           The topic of upgrading and repairs       designs and offer them to the market.
      of numerous already operational               The result is that the circle of technolo-
      weapons systems and items of military         gies that China would be interested to
      equipment deserves a bit of its own at-       obtain has been increasingly narrowing.
      tention. The establishment of large serv-           As the situation is today, most se-
      ice centers in the Customer country is        vere competition has been developing
      emerging as a new tendency observed           along two most visible lines. First, this is
      among proven first line defense suppli-       competition between Ukraine and Rus-
      ers.                                          sia over the Chinese market, and second
           In addition to industrial offset pro-    is competition within the Ukraine-Rus-
      grams, one of factors of no little signifi-   sia-China triangle over third markets in
      cance is that defense customers are           the Asian-Pacific Region, the Middle
      increasingly keen to get an access to cur-    East and Africa as well as part of the
      rent-generation technology and, under-        Iranian market. In the latter case,
      standably enough, to establish and            Ukraine has not been engaged in compe-
      further develop their capacities for re-      tition for political reasons.
      verse engineering and licensed produc-              Due to the arms embargo imposed
      tion. The latter trend is most apparently     on the PRC by the USA and major de-
      observed in cooperation with China.           fense suppliers in Europe following the
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             Ukraine-China:
       14    from Project-to-Project Cooperation to Strategic Partnership



      1989 Tainanmen Square massacre, Rus-          their developments through from con-
      sia and Ukraine still have had the ability    ception to construction is conducive to
      to sell out to China what has remained of     growing competition on the engineering
      their scientific research potentials, re-     service market. One more explanation
      dundant weapons arsenals and surplus          might be that most of basic design-fo-
      military equipment inventories. In the        cused upstream research was carried out
      eventuality that the arms embargo             back in the 1970-80s, and as such the de-
      against the PRC is lifted, as has been        velopments are almost finished intellec-
      openly pushed for by the EU countries,        tual products that cannot be put to use
      Western designers could propose China         under the conditions where there are a
      more advanced technologies than Russia        lack of operating assets, limited amount
      or Ukraine can. On the other hand, how-       and value of Government defense con-
      ever, it is the desire by the West to put a   tracts, and inability to solicit invest-
      brake on the growth of China’s techno-        ments, most particularly at the time of
      logical potential and military might that     economic recession.
      has brought about the situation as it is            On the other side of that coin, there
      now, as Western nations clearly visual-       is a major slump in the quality of defense
      ize China as a potent competitor threat-      production. In addition to a lack of ex-
      ening       their    defense    industrial    perience with independently doing de-
      dominance.                                    sign and development, and a critical
            Almost complete dependence of           degree of obsolescence and wear-and-
      Ukrainian and Russian defense indus-          tear of manufacturing assets due to
      tries upon the export market has evolved      staffing shortfalls, there has been a sharp
      into a common threatening tendency for        drop in the culture of engineering, as
      both countries, this stemming from very       well. A board of inquiry set up by the
      limited capacity of their respective do-      Russian Government to investigate the
      mestic defense markets which cannot ab-       cause of a series of test launch failures of
      sorb enough orders to provide domestic        the submarine-launched intercontinental
      manufacturers with sustained business         ballistic missile ‘Bulava’ could not iden-
      or large enough Government contracts.         tify the cause of the failures for a long
            One of the reasons why Ukraine or       time. At the initial stage of investigation,
      Russia cannot offer the defense market        the finger was pointed to a subcontrac-
      any of their fundamentally new designs        tor who allegedly supplied faulty ejec-
      is very tight budgets of their military       tion cartridges used in the separation of
      R&D and defense procurement pro-              the missile's stages. Eventually, it was
      grams. Further aggravating the situa-         concluded that the most recent test
      tion, the break-up of sound defense           launch failed because of a design and
      industry cooperation ties that existed be-    construction fault of the first stage steer-
      tween Ukraine and Russia prior to the         ing system. A fatal accident with the
      demise of the USSR has brought about a        Russian nuclear attack submarine
      situation where it takes decades to de-       “Nerpa’ which left 20 people dead in No-
      velop new designs and turn develop-           vember last year could also be consid-
      ments into products. The lack of ability      ered a consequence of an overall decline
      (stemming from a range of objective eco-      in technical culture and a shortfall of
      nomic reasons) for the designers to see       highly skilled workforce.
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                                                                      Ukraine-China:
                         from Project-to-Project Cooperation to Strategic Partnership   15

           In addition to this, there has been a    ucated and trained at military universi-
      considerable upset in the quality control     ties in Ukraine and Russia. In this con-
      system that previously was based on the       text, it may be noted that the latter two
      institution of Military Acceptance. As        have openly competed on the educa-
      was pointed out in a final statement of a     tional service market over Chinese stu-
      conference on defense industry develop-       dents. The 6,500 Chinese students (plus
      ment issues hosted by Russian NPO             PLA trainees) constitute the single
      “Mashinostroyenie” (Scientific/Produc-        largest foreign student contingent in
      tion Association “Mechanical Engineer-        Ukraine (29.25pct of a 45,000-strong for-
      ing”), only one in ten defense companies      eign student contingent). By comparison,
      in Russia have international ISO quality      the Russian Federation has a population
      management certificates thus far, while       of more than 25,000 Chinese students, in-
      in Ukraine, a volunteer qualification sys-    cluding about 6,000 in Moscow and over
      tem for defense products has yet to take      4,000 in St-Petersburg. A considerable
      shape.                                        proportion of the Chinese student popu-
           Low-level procurements of quality        lation have been specializing in technical
      weapons systems and military equip-           disciplines related to defense technology
      ment types result in fewer current-gen-       among other things. A slant towards
      eration systems being made available for      technical education is most apparently
      armed forces, thereby limiting their abil-    visible among the Chinese student pop-
      ity to build up operational experiences       ulation, which has not been observed
      with such systems. According to expert        among student communities of other
      figures for 2009, latest generation sys-      countries. The foreign student popula-
      tems account for a meager six percent of      tion structure in terms of specialization
      the Russian Federation Armed Forces in-       is usually divided among three roughly
      ventory.                                      equal domains, with one third of stu-
           It is worth of note that the PRC has     dents specializing in medicine, one third
      ascribed great importance to military         in technology and engineering, and a
      specialist training, seeking to enhance       combined one third in oil and gas, rural
      the overall educational level of the PLA      economy, culture and other disciplines.
      military personnel, which still remains       As Western medicine is not practiced in
      pretty low. A few teams of senior-rank-       the PRC where the Traditional Chinese
      ing PLA officers have taken training          Medicine dominates, medical students
      courses at reputed universities in            from China are not to be found in
      Ukraine and Russia. Curiously enough,         Ukraine or Russia, which explains why
      the Chinese trainees were less interested     the proportion of students specializing
      in the training course content but more       in technical disciplines is much higher
      in the training process in and of itself --   among the Chinese student population
      its philosophy, organization, approaches      as compared to student communities
      and technique – apparently revealing          from other countries.
      their intent to put into use the lessons            Ongoing armed forces downsizing
      learnt in setting up massive military per-    in Ukraine and Russia is conducive to
      sonnel education and training grid in         closures and mergers of military univer-
      China. They made no secret of PLA’s in-       sities, which has a highly adverse impact
      tent to have legions of its specialists ed-   on the quality of military specialist edu-
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              Ukraine-China:
       16     from Project-to-Project Cooperation to Strategic Partnership



      cation and training there. Simultane-                   In pursuing their military-technical co-
      ously, there are occurrences where se-             operation policies, countries have to comply
      lected Ukrainian scientists and scholars           with current limitations relevant to so-called
      are invited to visit China to provide high         ‘rogue’ states under a variety of international
      paying lecture courses on a variety of             sanctions. While those limitations are duly
      critical subjects relating, among others,          respected by most of defense suppliers,
      to theory and practice of aircraft carrier         China has openly acted in defiance of sanc-
      building, which reveals China’s desire to          tions of any kind. As traditional markets for
      obtain valuable knowledge by this way.             defense supplies from Ukraine and Russia
      It could well be assumed that Russian              had taken shape back in Soviet-era days, the
      scholars as well have been engaged to              two countries took to competing over the
      teach courses in China, both in private            once shared market space.
      capacity or under lecturer exchange pro-                Holding huge financial resources in
      grams.                                             hand, China confines itself to purchasing
            Financial support being provided             small quantities, placing an emphasis on
      by China to selected renowned foreign              acquiring production licenses, engineer-
      defense designers, and China’s engaging            ing documentation and manuals with an
      them to assist in the design and devel-            apparent goal of subsequently reproduc-
      opment of indigenous arms and military             ing the defense designs obtained. By en-
      equipment designs has in its basis the as-         gaging foreign developers to assist in
      piration to get access to new-generation           R&D projects for indigenous defense de-
      technology and build up own experience             signs, China pursues the objectives to get
      with independently doing R&D. This ob-             comprehensive knowledge of current-
      viously suggests that the PRC has been             generation technologies, obtain relevant
      deviating from reverse engineering as              experiences and acquire intellectual
      key defense technology development                 property products without purchasing
      tool and, instead, progressively redirect-         end products. Yet through it all, it must
      ing its effort towards the establishment           be noted that it was cooperation with
      of scientific schools of its own.                  China that enabled survival of most of
            A factor of no little significance is that   the defense companies that remained in
      China is geographically close to the Third         place in Ukraine and Russia following
      World countries who previously were tra-           the Soviet collapse.
      ditional customers for Soviet-supplied                  Either way, after acquiring sufficient
      weapons systems. Here, China has ex-               scientific-technological potentialities to
      panded its political influence on those            support its further technological develop-
      countries and supplied them with licensed          ment, China is going to give up coopera-
      produced weapons types. Western Euro-              tion with defense partners in Ukraine and
      pean countries and their traditional markets       Russia once it becomes economically un-
      on the Euro-Asian continent have been ef-          feasible. Future cooperation will only take
      fectively closed to defense suppliers from         place with dynamically developing de-
      Russia or Ukraine. Interests of defense sup-       signer companies capable of independ-
      pliers are usually focused on countries with       ently producing innovative designs. It
      high GDP or excessive financial resources,         must be noted for that matter that China
      whereas markets in underdeveloped coun-            once proposed Ukraine establishing a
      tries usually remain to be neglected.              range of industrial partnerships and setting
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                                                                       Ukraine-China:
                          from Project-to-Project Cooperation to Strategic Partnership      17

      up a research-and-technology park in            accessible to it in Ukraine or Russia. This
      Ukraine, but those proposals have never         would enable it to emerge as a most power-
      been materialized. Even though technol-         ful competitor on third markets – powerful
      ogy parks, according to statistics data, ac-    to the extent as to oust Ukrainian and Russ-
      count for no more than 13 percent of            ian defense companies from their old tradi-
      innovative product output, they attract         tional markets, with only few critical
      pinpoint investments in promising projects      technologies remaining the exclusive
      due to access to low-soft lending programs      province of Ukraine and Russia.
      and tax exemptions. Marked manifestation              Basically, cooperation and growing
      of inertia being observed there arises from     competition between the three countries
      considerable juridical difficulties involved    could be observed on markets for the fol-
      in official registration of technology parks    lowing:
      which require legislative amendments to                   •Satellite launch services and
      be established. Regarding defense compa-        co-development of satellite navigation
      nies in Ukraine and Russia, cooperation         systems;
      with China almost always takes place in                   •Aeronautical technologies;
      cases involving most easily producible de-                •Land warfare equipment;
      fense designs created 20 to 25 years ago. In              •Naval ships and related
      such a case, the shortest possible time limit   weapons and systems;
      required for China to reproduce a selected                •Air defense systems.
      design has been reduced to two years. In              In addition, separate consideration
      the opinion of a number of Ukrainian de-        should be given to:
      fense industry sources (general designers                 •Rocket and missile technolo-
      at premier defense companies), the end of       gies;
      the active phase of cooperation with China                •Control and communication
      might be expected in five to seven years        systems, electronic intercept radio intel-
      from now, enough for the PRC to launch          ligence systems, electronic warfare
      indigenous production of reverse engi-          equipment;
      neered designs and oust Ukrainian and                     •Joint R&D activities;
      Russian defense companies from their tra-                 •Educational services (military
      ditional markets. Truth be told, this does      specialist training)
      not apply (at least at this point in time) to
      the AFV and aircraft engine domains.
            On the other hand, the PRC, by most
                                                      Problems involved in
      conservative estimate, procured from $1.8       safeguarding intellectual
      to 2.0 billion worth of weapons and de-         property rights
      fense equipment in each of the recent 15             Some interesting relationships, both
      years when it achieved a considerable mil-      in legal and moral terms, have arisen be-
      itary-technological quality leap. After-        tween individual companies in Ukraine,
      wards, the amount of foreign defense            Russia and China as well as at the trina-
      procurements was willfully reduced to the       tional level over intellectual-property
      minimum.                                        rights to technologies involved in some or
            By expert estimates, China will, in the   other military design.
      foreseeable future, be able to establish pro-        At the panel session on “Problems in-
      duction of most of the defense technologies     volved in safeguarding intellectual prop-
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             Ukraine-China:
       18    from Project-to-Project Cooperation to Strategic Partnership



      erty rights relating to defense-industrial co-   Ukrainian Minister of Industrial Policy,
      operation between the Russian Federation         V.Novicki. Even though Ukraine and Rus-
      and foreign states” that took place in Janu-     sia had previously jointly carried out a sim-
      ary 2008 as part of the Infoforum-10 on          ilar contract to supply four same-class
      “Safeguarding intellectual property rights       ‘Zubr’ air cushion landing vehicles to the
      and the exploitation of the results of intel-    Hellenic Navy, neither of the two has the
      lectual property”, hosted by Moscow’s Sci-       capability to build vehicles of this type sin-
      entific Research Institute of Intellectual       gle-handedly. Ukraine’s workshare in
      Property, it was pointed out in a report         building vehicles of this type is estimated
      presented by E.A.Livadny that the China          by analysts at no less than 40 percent, plus
      North Industries Corporation (NORINCO)           a major part of warranty and post-war-
      was manufacturing without proper license         ranty servicing provided by Research and
      some individual small arms weapons types         Manufacturing Gas Turbine Corporation
      derived from the Kalashnikov AK-47 as-           Zoria-Mashproekt. Competition over the
      sault rifle: Type 97, Type CQ, Type 56           Hellenic Navy’s contract was fierce; it even
      (copy of the AK-47), Type 68, Type 81,           continued when work on the contract was
      Type WQ 314 and Type WQ 314A. The                already in progress, which resulted in a re-
      same report said that China has established      vision of the terms of the deal. The result
      production of reverse engineered copies of       was that the value of the $200mn contract
      some of Russian-designed weapons sys-            previously equally shared between the
      tems, among them the AO-80K air defense          Ukrainian and Russian contractors was re-
      gun, the laser-guided 155mm projectile           distributed in the latter’s favor by a factor
      ‘Krasnopol’ and the ‘Fregat M2EM’ naval          of 1 to 3. The situation was eventually re-
      radar, as well as the naval radar ‘Mineral-      solved to satisfaction of Ukraine who was
      ME’ designed by what is now the State En-        awarded a compensating contract to sup-
      terprise ‘Scientific-Research Institute of       ply a TP-400-type ship transporter plat-
      Radar Equipment ‘Kvant-Radiolocation’            form built at Sevmorzavod Shipbuilding
      based in Kiev.                                   Yard in Sevastopol. The value of the ‘Zubr’
            Ukrainian designers are speaking of        contract with China may amount to
      numerous facts where equipment once              $315mn, provided that the supply package
      supplied to China had, while under war-          includes the complete set of engineering
      ranty, been subject to unauthorized open-        documentation and manuals as demanded
      ing with the aim of studying the structure       by the Customer. It was reported by vari-
      and construction of, and subsequently re-        ous media sources that Russia was negoti-
      producing its constituent subsystems.            ating the transfer of production license for
      However, no official complaints have ever        the Zubr to China in 2007, in a package in-
      been made out of fear of losing well-pay-        cluding the supply of 10 to 15 such vehicles
      ing customers.                                   to be built at Russian shipyards. At various
            Most illustrative in terms of copyright    stages of the negotiating process, the
      protection might be the two examples as          amount of the supply varied from four ve-
      described below.                                 hicles (for $215mn) to six and ten vehicles,
            First is about the contract from China     but the negotiating parties had never ar-
      to supply four Type 1232.2 ‘Zubr’ small          rived to any compromised agreement. The
      landing craft air cushion vehicles, whose        Russian company Central Maritime Design
      signing was announced in May 2009 by the         and Development Bureau ‘Almaz’ based in
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                                                                       Ukraine-China:
                          from Project-to-Project Cooperation to Strategic Partnership        19

      St.-Petersburg has stated that the Ukrain-             Exactly the converse situation in
      ian party violates its intellectual property     terms of safeguarding intellectual property
      rights by transferring (or selling) engineer-    rights is being observed with Ukraine’s top
      ing documentation and manuals for the            designer of naval radar systems, the Kiev-
      ‘Zubr’ small landing craft air cushion vehi-     based Scientific Research Institute of Radar
      cle to a third party without the Designer’s      Equipment ‘Kvant-Radiolocation’. Its port-
      authorization. UkrSpetsExport, Ukraine’s         folio of highly successful Soviet-era de-
      defense import/export authority, does rec-       signs includes a range of 2D and 3D naval
      ognize that copyright to the ‘Zubr’ design       radar systems, among them the ‘Pozitiv’,
      belongs to Almaz. Simultaneously, it             the passive radar system ‘Mineral’, the tar-
      points out that air cushion vehicles of this     get designating radar system ‘Uspekh’ and
      design have been built by Ukrainian ship-        the ‘Mars-Passat’ (the Soviet alternative to
      building yard FSK ‘Morye’ on the strength        the US-designed integrated naval weapons
      of bilateral agreement on intellectual prop-     system AEGIS). Not only Kvant-Radiolo-
      erty rights to ex-Soviet military designs,       cation is designer of naval radar equip-
      which allows the signatory parties to em-        ment, but it also employs a manufacturing
      ploy design concepts, engineering docu-          plant in Kiev to series-produce own de-
      mentation and manuals available to them.         signs.
      It requires that any kind of activities in-            Kvant-Radiolocation is currently as-
      volving the use of copyrighted designs or        sisting its Russian counterparts in pre-pro-
      safeguarding intellectual property rights        duction works at a newly-built factory
      should be performed in agreement be-             where it was planned to be relocated at the
      tween the signatory parties, but says noth-      time before the USSR fell apart. Russian
      ing about the intellectual property rights       manufacturers of Kvant-Radiolocation’s
      emerged in between the collapse of the So-       designs are telling potential customers that
      viet Union and the day when the agree-           what they offer them are all their own de-
      ment took effect a couple of years ago.          signs that they sell with a minimum modi-
            Therefore, the companies — fully com-      fication. They don’t even bother to
      prehending that in absence of contracts for      re-designate the ‘adopted’ designs, except
      the building of vessels of this unique design    for changing the last few symbols in the
      they would lose the capability to build them     original designation name. In this particu-
      or would cease to exist altogether -- are keen   lar case, Kvant-Radiolocation has a strong
      to take advantage of the last opportunity to     interest in already existing cooperation ties
      improve their situation through the Chinese      to be maintained and developed further; it
      order. It is obvious to all that exports of      has opted to forget ‘past endeavors’ and
      Russian- or Ukrainian-built Zubr-type ACVs       concentrate its effort on new developments
      would reduce to near zero once China gets        rather than to compromise relationships
      hold of the documents required for produc-       with Russian partners.
      tion of the hovercraft of this design to be            Kvant-Radiolocation is currently a
      launched at its own yards. As the situation at   successful supplier of radar equipment to
      the Ukrainian shipbuilder FSK ‘Morye’ is far     China. It is now completing design and de-
      worse than that at Almaz, the former would       velopment of a command and control com-
      agree to cooperate with China on much less       puter system (C2CS, an equivalent of
      beneficial terms and conditions, which in-       AEGIS-class integrated command/man-
      deed is what would suit the book of China.       agement information system) for PLA
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              Ukraine-China:
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      Navy’s new Type-956 destroyers and, pos-          Soviet-supplied weapons types, among
      sibly, future aircraft carriers. In addition to   them the P-15 cruise missile. But test flights
      this, Kvant-Radiolocation supplies a con-         of P-15 clones have all failed, as Chinese
      siderable portion of radar and optoelec-          engineers did not know even the first word
      tronic systems for naval ships being built        about rocket building. Ironically, now an-
      for the PLA Navy in Russia. In so doing,          tiquated concept of closed architecture (as
      the Ukrainian company does not raise              opposed to newer open-architecture con-
      claim either to Russia or China. To make an       cept) is more effective in terms of copyright
      estimate of Kvant-Radiolocation’s contri-         protection in that it does not allow poten-
      bution, suffice it to have a look at the com-     tial users to see inside or reproduce all or
      position of the electronic countermeasure         parts of a specific weapons design archi-
      equipment package on the PLA Navy’s               tecture. Even though the Ukrainian com-
      Type-965E and Type-956ME destroyers               pany is involved in the design and
      that were supplied as wholly Russian-de-          development of almost the complete set of
      signed without any mention made what-             sonar system types (underkeel, towed,
      soever of the Ukrainian contribution. In          add-on, helicopter-deployed), its products
      addition to electronic warfare equipment,         still remain an unknown quantity on most
      the propulsion-machinery plant on the de-         of potential markets. Nonetheless, Ukrain-
      stroyers was designed in Ukraine’s Zapor-         ian companies enjoy pre-eminence in the
      izhzhia, as well. It might be noted for that      global market for airborne anti-submarine
      matter that the PRC has already launched          radio sonobuoys, with the Russian Federa-
      the effort to design and develop indige-          tion and some NATO countries being
      nous copies of some Russian-supplied de-          among major customers. Radio sonobuoys
      stroyer types, whereas Russia has yet to          of      the      RGB        series     (RGB-
      launch the development phase of a new de-         15/16/17/25/55/75) had been series man-
      stroyer design where a premium is being           ufactured at a factory in Kiev and,
      apparently placed on innovative naval             previously, in Nova Kakhovka. Kiev’s
      weapons designs developed with revenues           Radio Equipment Factory supplies ‘Os-
      from the Indian Navy’s contracts. Ukraine         minog’ (Octopus)-series target search and
      and Russia both want to tap into the prom-        track radar systems for integration with the
      ising market for stealth corvettes, and in-       K-28 helicopters exported by Russia to
      tend to begin design and development of           China (to date, seven units of the ‘Os-
      future frigates of indigenous designs. In         minog’ radar system have been supplied).
      the marketplaces for corvettes and frigates,      In this particular case, not only do Ukrain-
      China has successfully promoted its earlier       ian companies provide support for Russian
      designs on Asian-Pacific markets.                 defense export contracts with the PRC, but,
            In the case of hydroacoustic equip-         to a certain degree, maintain a stranglehold
      ment, similar situation could be observed.        on some niche markets.
      Here, however, Ukrainian company Kiev’s                  At the time when Ukrainian and
      Scientific Research Institute of Sonar            Russian economies were in deep collapse
      Equipment is in a worse standing, being           in the first few years immediately follow-
      overshadowed by its Russian counterpart           ing the disintegration of the USSR, neither
      and not having a large enough portfolio of        of the two could afford further maintain-
      torpedo systems products. China previ-            ing naval vessels of that big displacement
      ously was making attempts to reproduce            and, simultaneously, both were in desper-
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                                                                       Ukraine-China:
                          from Project-to-Project Cooperation to Strategic Partnership       21

      ate need of cash. As a result, China had ob-    panies believe that visits by Chinese dele-
      tained a few large naval ships that once        gations on some occasions are not aimed at
      epitomized the heyday of the Soviet naval       forging a deal but, in actual fact, are mani-
      shipbuilding school of thought, at a price      festations of industrial espionage aimed at
      even cheaper than that of ferrous scrap of      collecting information about new technol-
      an equivalent weight. In such a case, Russ-     ogy and directions of future developments.
      ian military officials managed to transfer      Of course, some manifestations of open es-
      even some top-secret assembly units to          pionage (which is punishable by law) do
      China. The Type 11436 aircraft carrying         take place, as well. On July 28, 2009, Russ-
      cruiser ‘Variag’ was towed to Dalyan Ship-      ian Customs officers at Zabaikalsk-
      yard from the Black Sea Shipbuilding Yard       Manchuria international automobile
      in Mykolayiv when it was 67% ready in           checkpoint detained an exiting Chinese cit-
      2002. Here, the PRC, while trying to see in-    izen attempting to smuggle fighter aircraft
      side the obtained military equipment de-        power supply equipment that was dis-
      signs, has been simultaneously making           guised as pressure devices hidden in the
      attempts to establish indigenous military       luggage boot of his vehicle. Intellectual
      design schools of thought and engineer in-      property protection issues are closely in-
      novative construction materials without ar-     terrelated with keeping commercial and
      bitrarily copying the technology solutions      Government secrets, most notably in cases
      acquired. This point could be underscored       where potentialities for future cooperation
      by China’s development of indigenous tor-       and the status of modern designs make the
      pedo weapons system series derived from         transfer of new (but not newest) technolo-
      American, Italian and ex-Soviet counter-        gies quite feasible. Intellectual property
      parts. The Chinese have built an indige-        protection issues involved with military-
      nous current-generation torpedo system          technological cooperation programs of the
      and, on a parallel track, developed a few       Russian Federation, Ukraine and the PRC
      innovative construction materials, i.e. for     do exist for the copyright holders who can-
      the torpedo’s fore section, a design whose      not develop themselves further or offer
      engineers have been awarded a state prize       manufacture-ready innovative design so-
      by the PRC Government.                          lutions. No matter whether an appropriate
            Ukrainian and Russian naval design-       contractual basis is in place or not, any
      ers have complemented each other on a           kind of a weapons system or an item of
      number of niche markets, which has impli-       defense equipment obtained from a for-
      cations for their respective intellectual       eign supplier may, to some or other de-
      property rights. Conflicts do arise in situa-   gree, potentially provide a basic design
      tions where copyright holders begin ‘tilt-      around which to build an indigenous de-
      ing at windmills’ when they realize that        rivative. For this reason, weapons types
      they have nothing new to offer the market.      designed for the export market should
            The nature of copyright abuses lies in    not contain newest-generation designs
      differences between free-market Western         but, rather, those of the latest but one gen-
      ideology and socialist ideology. Remaining      eration. As is lamentably often the case,
      fully socialist, the PRC, as did the USSR in    some Ukrainian defense designers, left
      its own time, has openly abused intellec-       without Government support, would not
      tual property laws in the hunt for new          stop short of selling out their most latest,
      technology. Officials at some defense com-      if not last designs.
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             Ukraine-China:
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      Competition on the space                         Russian partners provided the software
                                                       component. Therefore, in this particular
      services market                                  case, Ukrainian and Russian companies are
             Russia and the PRC both have the          complementing one another.
      possession of a great deal of modern-gen-              CJSC ‘Cosmotras’, a joint partnership
      eration ballistic missiles, while Ukraine        between Ukraine, Russia and Kazakhstan,
      boasts of having a very rich experience          has been converting the RS-20 (NATO re-
      with designing, developing and manufac-          porting name SS-18 ‘Satan’) ICBM into the
      turing them. However, cooperation in the         ‘Dnepr’ SLV for Russia, and it employs the
      ballistic missile area — because of national     converted rocket for launching small satel-
      security considerations and the limitations      lites from the Baikonur Cosmodrome in
      assumed by countries in connection with          Kazakhstan and a launch site of the Russ-
      their international obligations relating to      ian Strategic Missile Forces’ Yasnensk Mis-
      nonproliferation of missile technologies –       sile Division in Orenburg Region.
      is restricted to the development of new ma-            On August 31, 2009, Chinese launch
      terials. Simultaneously, there is a fierce       vehicle CZ-3B partially failed during the
      competition observed on the space launch         launch due to a third stage malfunction
      market where each and all members of the         which resulted in Indonesian communica-
      space-faring club have been engaged. A           tions satellite Palapa-D1 reaching a lower
      most distinguishable characteristic of the       than planned orbit. This was the first inci-
      space services market is reluctance by any       dent involving Chinese space launch vehi-
      of the market players to share critical tech-    cles in 13 years since August 1996. To date,
      nologies with competitors.                       the PRC has carried out 77 successful space
             Even though the PRC has been build-       launches, revealing its aspiration to seize
      ing indigenous space launch vehicles and         part of the space launch market.
      has launched a human spaceflight itself, it            In late June 2009, international consor-
      is still lagging in this domain far behind       tium Sea Launch that comprises Ukrainian
      other countries, including Russia and            participants ‘Yuzhnoye’ Design Bureau and
      Ukraine.                                         NPO ‘Yuzhmash’ (a leading provider of
             Russia and Ukraine both have opted        launch services to the commercial satellite
      the way of converting intercontinental bal-      industry) filed voluntary petitions to reor-
      listic missiles into commercial space launch     ganize under Chapter 11 of the United States
      vehicles (SLVs). The SLV ‘Rokot’, for ex-        Bankruptcy Code in the United States Bank-
      ample, has been built by way of converting       ruptcy Court for the District of Delaware.
      the PS-18 (NATO reporting name SS-19             Usually well-informed sources believe that
      ‘Stiletto’) ICBM. Rokot employs the              the main reason why Sea Launch has slowed
      Stiletto’s boost cluster as the first and sec-   down the rate of its operations recently is in-
      ond stages, while the upper stage is the         ability by Russian company NPO ‘Energo-
      newly-developed ‘Briz-KM’. Ukrainian             mash’ to supply Yuzhmash with sufficient
      company OJSC ‘Khartron’ based in                 numbers of sustainer engines for Zenith-3SL
      Kharkiv is the designer, maker and sup-          rockets employed for Sea Launch opera-
      plier of control systems both for the SS-19      tions. They are claiming that Energomash is
      Stiletto ICBM and the Rokot SLV. Control         now more focused on cooperation with
      system hardware for the ‘Briz-KM’ upper          Lockheed Martin, supplying it with sus-
      stage was developed by Khartron, while           tainer engines for its ‘Atlas’ SLVs.
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                                                                        Ukraine-China:
                           from Project-to-Project Cooperation to Strategic Partnership         23

            A project is now nearing completion               The PRC is apparently experiencing
      in Ukraine to build a prototype of a funda-       difficulties in building its indigenous satel-
      mentally new SLV design to be known as            lite navigation and positioning system Bei-
      Cyclone-4. Being designated as the                dou (‘Northern Dipper’ or ‘Ursa Major’).
      youngest member of the Cyclone family,            Incidentally, the Russian-Chinese joint-
      the Cyclone-4 will, in actual fact, have little   venture partnership Ural & Hangsheng
      if anything in common with its older sib-         Autoelectronics Co. Ltd., anticipating al-
      lings. The Cyclone-4 has been scheduled to        most simultaneous arrival of China’s Bei-
      be ready to carry out its maiden launch           dou and Russia’s GLONASS satellite
      from the Alcantara Space Center (Centro           navigation systems to the market, has al-
      de Lançamento de Alcântara) in Brazil in          ready launched the design and develop-
      late 2010 or early 2011.                          ment of a receiver combining Beidou and
            It might be noted that, according to        GLONASS reception. Ukraine enjoys ex-
      expert estimates, space launch services ac-       perience with developing satellite naviga-
      count for only about 5% of the overall            tion systems, along with the USA
      value of the space services market. Here,         (NAVSTAR) and Russia (GLONASS). Rus-
      most of the market in value terms is ac-          sia has maintained its GLONASS satellite
      counted for by services for the design, de-       constellation as an alternative to the United
      velopment and construction of spacecraft          States’ GPS satellite navigation and posi-
      and relating systems. This market is domi-        tioning system. However, development of
      nated by the U.S., Great Britain, France and      the GLONASS project’s commercial com-
      the Russian Federation. As far as Ukraine is      ponent has been hampered by the lack of a
      concerned, it has successful experiences          cost effective receiver solution. Here,
      with building Earth monitoring satellites         Ukrainian company Orizon-Navigation
      but still does not have even a single com-        based in Smila, Cherkasy Region, has
      munication satellite of its own. Ukraine’s        closely and actively cooperated with its
      first ever communication satellite will be        Russian counterparts, doing processor lay-
      designed, developed and built in Canada.          out generation works. But Orizon-Naviga-
            Separately, it may be noted that            tion, as is the case with its Russian
      Ukrainian companies have provided de-             partners, does not have the possession of
      signer’s technical supervision and in-ser-        current-generation production technology
      vice support and maintenance for the              for its microelectronic circuits, and there-
      intercontinental ballistic missiles remain-       fore cannot compete with more technolog-
      ing on stand-by duty in Russia. In such a         ically advanced suppliers. Cooperation by
      case, Moscow is apparently reluctant to tap       Ukrainian companies with European part-
      Ukrainian rocket builders for own ICBM-           ners in the planned ‘Galileo’ satellite navi-
      focused programs, while being obviously           gation and positioning system of the
      incapable of developing and building mis-         European Union should not be considered
      sile systems on its own. Russian designers        as a manifestation of direct competition
      will certainly eventually succeed in creat-       with Russian companies, even though Rus-
      ing a current-generation ICBM design some         sia does not have an interest in more navi-
      time in the future, but by engaging Ukrain-       gation systems to be deployed on orbit
      ian partners to assist in that effort they        along with its GLONASS constellation. In
      would achieve this goal more sooner and in        this sense, China has launched a challenge
      a more efficient yet less expensive way.          against space-faring nations by announc-
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             Ukraine-China:
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      ing plans to deploy an indigenous satellite     only considered here as weapons plat-
      navigation system, the ‘Beidou’. In its cur-    forms. In the Russia-Ukraine-China trian-
      rent configuration, however, the Beidou         gle, the unrivaled leader in the field of
      has limited application and a coverage lim-     missile weapons is the Russian Federation.
      ited to the territory of China itself. In re-   Any of the world designers have never
      sponse to this move by China, Japan has         managed to develop anything comparable
      declared intention to set up own satellite      in operational efficiency to the missile sys-
      navigation system, but there has been no        tem types created in Russia back in Soviet-
      reports to date of Tokyo making any prac-       era days. The USSR, reciprocally, had
      tical implementation measures to this end.      successfully reproduced U.S.-designed
            It may be noted in this context that      anti-ship missiles Tomahawk and Har-
      Russian spacecraft are far inferior to Amer-    poon, under designator names ‘Granat’
      ican counterparts in operational capabili-      and Kh-35, respectively. In the anti-ship
      ties and lifetime (in sum their quality), and   missile domain, China only has two in-
      next-generation Russian satellites are not      digenous designs, the C-801 and C-802 (the
      expected to equal currently operational         latter featuring an air breathing engine),
      U.S. satellites in performance capabilities     both of which are much inferior to U.S. and
      until 2014-2016.                                Russian equivalents in operational capa-
            So, the above indicates that Ukraine      bilities. At the same time, the PRC has long
      and Russia are cooperating with and com-        caught up with Russia in the fields such as
      plementing each other on the missile and        artillery and multiple-launch rocket sys-
      space services markets, and, to a limited       tems. Even though they may not be as ca-
      degree, are competing with one another on       pable as Russian or Western-designed
      the space launch market where the PRC is        alternatives, still their indisputable com-
      emerging as a viable competitor to Ukraine      petitive advantage is much lower cost than
      and Russia                                      that of rival equivalents. Given that con-
                                                      ventional artillery systems had reached the
                                                      limit of their technological development
      Competition on the rocket and                   back at the WWII time (with only fire con-
      artillery markets                               trol system being improved in postwar
            A common competitive disadvantage         years), China has, in actual fact, developed
      of Ukrainian and Chinese defense indus-         a last century’s generation technology. In
      tries (specifically Ukraine’s naval ship-       the development of future-generation ar-
      building industry) is the lack of advanced      tillery weapons such as electromagnetic
      shipboard missile system designs. Naval         guns or liquid projectile weapons, the level
      ships are cheaper to build in China than in     of competition is difficult to evaluate, as
      Ukraine or Russia. Asian-Pacific countries      the developments are kept in secret and an
      would build supersize vessels within a          operational prototype is not to be built in
      shorter timeframe and, often, with a higher     the U.S. until 2025. A quite similar situation
      quality. Moreover, at the time of economic      could be observed in the domain of laser
      recession, they openly resort to price          weapon systems where the Russian Feder-
      dumping practices by reducing prices by         ation is the only country to have demon-
      18-20 percent to get an extra edge over         strated successful developments.
      their European rivals. Naval ships, combat            The PRC has successfully marketed
      aircraft and armored fighting vehicles are      indigenously-designed highly capable
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                                                                       Ukraine-China:
                          from Project-to-Project Cooperation to Strategic Partnership         25

      multiple rocket launchers, while Ukraine         vated by its desire to get access to unique
      has recently demonstrated an indigenous          supersonic ramjet anti-ship missile
      equivalent whereby an emphasis is obvi-          ‘Moskit’. Russian non-nuclear submarine
      ously placed on operational comfort for the      designs, as well, include integrated anti-
      launcher crew.                                   sub/ship cruise missile systems of the
            A rare manifestation of competition on     ‘Klub’ series. Previously, when the USA
      the rocket and artillery market was Russia’s     was showing interest in purchasing a ship-
      transfer of production license for the           ment of Russian anti-ship cruise missiles
      ‘Krasnopol-M’ weapon to the PRC, in a pack-      ‘Moskit’ (NATO reporting name SS-N-22
      age with 1,000 precision-guided rounds of        ‘Sunburn’) in a package with a few attack
      this type. This means to say that more capable   craft as carrier platforms, the Russian de-
      Ukrainian equivalent ‘Kvitnyk’ (designed by      signer of the missile, in an article published
      Nizhyn’s Central Design and Development          in ‘Komsomolskaya Pravda’, protested the
      Bureau ‘Tochnist’) will never be able to make    planned deal, saying that the USA, with its
      it to the Chinese market. Furthermore, ex-       virtually unlimited financial resources and
      pected mass production of precision weapons      technological potentialities, would be able
      in this category at Chinese factories might      to use the design as a basis for building an
      threaten Ukrainian and Russian suppliers on      indigenous equivalent capable of mid-
      third-country markets.                           course speeds of up to 4.5 km/s. The
            The PRC has already advanced ahead         planned deal was scrapped after the
      of Ukraine in some weapons technology            protest. The ‘Moskit’, simple as it may im-
      areas where Ukraine was previously a tech-       mediately seem, is, in actual fact, a highly
      nology donor. Now Ukraine itself is inter-       sophisticated design which China will not
      ested in reverse transfer of some Chinese        be able to replicate or begin to mass pro-
      technology required for building an indige-      duce in the foreseeable future. On the other
      nous tactical/operational missile system de-     hand, the PRC has already obtained pro-
      sign based on advanced and cost effective        duction licenses for the Kh-35/AS-20
      materials and electronic assembly units. The     ‘Kayak’ and Kh-31A/AS-17 ‘Krypton’ anti-
      PRC has also advanced far ahead recently in      ship missiles.
      robotic engineering and UAV development.               In the field of submarine design and
            It will therefore be easily understood     construction, Ukraine is no competitor to
      that, in the rocket and artillery market,        Russia, as it does not have indigenous de-
      Ukraine is interested in Chinese and Russ-       signs in this domain, neither does its Navy
      ian technologies, which would undermine          have a substantial enough requirement for
      its own position as arms supplier on the one     submarines (it is estimated at 3-9 sub-
      hand, but would simultaneously open new          marines at most). As for China, it has vig-
      vistas for international collaboration on the    orously worked to develop reverse
      other hand.                                      engineered copies of the Type 877 Var-
                                                       shavyanka-class non-nuclear submarine
                                                       and its more recently designed versions,
      Competition on the                               and even has launched the building of
      naval market                                     atomic submarines. After taking delivery
            China’s selection of Russia as the sup-    of the Varshavyanka in 2002, the Chinese
      plier of a few expensive destroyers for the      built a replica of the submarine’s hull in
      PLA Navy was, to a large degree, moti-           2004 and, probably, ‘stuffed’ it with
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             Ukraine-China:
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      weapons whose types could not be viewed        and again express an interest in a ship of
      on overhead images in sufficient resolu-       that class. For China, however, acquiring
      tion. It could be well assumed that it won’t   that type of a ship would be highly prob-
      be long before the PRC would be able to        lematic, given that the cruiser’s weapons
      copy and build the sub’s key systems, as       complement includes 16 anti-ship cruise
      well. Considering the progress made by         missiles capable of ranges in excess of 500
      the PRC in microelectronics, radiolocation     kilometers – a prospect that would cer-
      and hydroacoustics, Beijing may soon           tainly raise protests from the U.S., Taiwan
      begin supplying naval vessels in all cate-     and Japan. Russia, despite its rapidly
      gories (with efficient enough naval            growing geopolitical ambitions, is afraid to
      weapons packages) to third-country mar-        assume extra financial burdens for the
      kets where it is going to face a competition   completion and subsequent operation and
      from Russia. The PRC has recently deliv-       maintenance of that large ship. With regret,
      ered the first-of-class F-22P frigate to the   we point out here that the suggestions
      Pakistan Navy, under a four-vessel             being voiced for the unfinished cruiser to
      $750mn contract awarded in 2004. Naval         be employed as a seaborne anti-ballistic
      electronic equipment on the first F-22P        missile launch platform are almost as real-
      frigate is almost entirely made in China.      istic as creating a human settlement on
      Previously, the PRC was supplying naval        Mars.
      ships to Thailand and Algeria.                       In the field of ship repairs, Ukraine
            In the field of naval weapons, Ukraine   enjoys some advantages over Russia, in
      could cooperate both with the PRC and the      that Ukraine supplies propulsion systems
      Russian Federation. However, cooperation       for most of ex-Soviet naval ship designs,
      here might not be of a large scale, as the     and, furthermore, the cost of ship repair
      PRC and Russia both have excessive ship-       services is cheaper in Ukraine. The PRC
      building capacities. Ukraine has huge po-      has seriously considered having its Type
      tentialities and experiences with naval ship   956 destroyers repaired at Ukrainian yards.
      developments. Even so, cooperation with        As well as ship repairs, Ukraine has an
      Russia or the PRC here is hardly possible,     edge over Russia in the naval ship upgrad-
      given that the former can do well on its       ing market, as well, most particularly with
      own without anybody’s help, while the lat-     respect to gas-turbine engines which Rus-
      ter, even though it does have a requirement    sia does not manufacture thus far (naval
      for naval ship designs, would prefer ob-       gas-turbine manufacturing facilities being
      taining them ‘for free’. Furthermore, it is    under construction in Russia will not be
      most unlikely that any of the two super-       able to offer competitive products during
      powers would openly recognize the need         the mid-term period).
      to have Ukrainian design companies en-               Research and Manufacturing Gas
      gaged in their respective naval shipbuild-     Turbine Corporation Zoria-Mashproekt,
      ing programs.                                  earlier in 2009, was awarded a Chinese
            One more area of common interest for     contract to supply four naval gas-turbine
      the three countries could be the completion    engines worth $55mn, in addition to three
      of the Type 1164 Missile Cruiser ‘Ukrayina’    large-scale orders from the Russian Navy.
      that is currently staying unfinished at the          It is worth of note that Ukrainian ship
      61 Kommunara Shipbuilding Yard in              repair yards in Sevastopol (which have
      Mykolayiv. Both Russia and the PRC ever        currently been employed as leased prop-
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                                                                       Ukraine-China:
                          from Project-to-Project Cooperation to Strategic Partnership        27

      erty by the Russian Black Sea Fleet, under      defense modernization and improvement
      a lease agreement expiring in 2017) are op-     programs are restricted to a limited up-
      erating at 100pct of capacity and provided      grade of technically obsolescent and worn-
      with sustained business through the lease       out short range mobile SAM systems
      period. As a result of ongoing fight for        OSA/SA-8 ‘Gecko’ and, more rcently de-
      property rights in Ukraine, a number of         signed, self-propelled medium-range SAM
      ship repair plants have been in deep col-       systems of the BUK series, as well as re-
      lapse, all the blame for their problems         pairs on long-range S-300-series SAM sys-
      being fixed on ‘ineffective management’.        tems. The sales (including replacement
            Therefore, in the naval shipbuilding      parts) and repairs of soon-to-be-phased-
      area, Ukraine has the possession of power-      out SAM systems S-75/SA-2 ‘Guideline’
      ful design and development capacities. At       and S-125/SA-3 ‘Goa’ could be safely neg-
      the same time, Ukrainian naval shipbuild-       lected. A project to launch overall repairs
      ing yards cannot hope for export contracts,     of S-300-series SAM systems on the prem-
      at least pending successful completion of a     ises of Kiev’s Repair Plant ‘Radian’ proved
      program to build four corvettes to meet the     to be a total failure, while the State Enter-
      Ukrainian Navy requirement. The Russian         prise ‘Generator Plant’ (who was to be
      Federation and the PRC both have the pos-       made responsible for upgrading transmit-
      session of substantial shipbuilding capaci-     ter-receiver subsystems for the S-300) has
      ties, providing a direct competition to         currently been undergoing bankruptcy
      Ukraine on third-country markets. In ab-        proceedings.
      sence of indigenous naval weapons de-                 To date, the Russian Federation has
      signs, Ukraine has to engage with foreign       exported a total of 40 S-300-series SAM fire
      countries. Here, Chinese weapons are            units to the PRC. In addition, Russia has as-
      cheaper, whereas Russian weapons are            sisted China in developing a copy of its S-
      more advanced and of higher quality, even       300PMU-1 SAM design under Chinese
      against the backdrop of Western counter-        code name HQ-9, along with its simplified
      parts. On the naval market, Ukraine’ main       version FT-2000. Previously, China
      competitive advantages over Russia or           launched full-rate series production of the
      China are its gas turbine engine develop-       HQ-2-type SAM system (indigenous
      ment and production capacities (which are       replica of the S-75). It is worth of note here
      far more advanced than those in Russia or       that the PRC was purchasing SAM weapon
      the PRC) and the capability to provide          systems from Western suppliers until it
      modestly-priced high-quality repair and         came under international arms embargo in
      maintenance services.                           1989.
                                                            Ukraine has since 1993 persistently
                                                      proposed that Russia should assist in up-
      Competition on the air                          grading to modern standards and extend-
      defense market                                  ing operational life of the UAF’s SAM
           Comparing with the naval market, sit-      weapons inventory. To date, agreements
      uation is pretty different for Ukraine on the   have been reached with Russia on a very
      air defense market. For one thing, Russia       limited number а projects. In 2003, a joint
      enjoys pre-eminence on that market. Sec-        project was completed to extend opera-
      ond, Ukraine cannot offer competitive           tional life of the UAF’s 5V55R and S-300P
      enough current-generation designs. Its air      SAM system inventories from 10 to 15
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             Ukraine-China:
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      years. The core of Ukraine’s surface-to-air         The PRC has developed and is offer-
      missile shield is comprised by Soviet-era      ing potential export customers a range of
       S-300PT and S-300PS SAM systems manu-         indigenous medium-range SAM systems
      factured back in the mid-1990s and pro-        derived from the Western designs obtained
      viding effective engagement ranges limited     prior to 1989 when it came under an inter-
      to 75 km. Newer and more capable S-300-        national arms embargo. Using some West-
      series versions had never reached Ukraine,     ern and ex-Soviet SAM designs as a basis,
      unlike China whom Russia was supplying         the PRC has developed indigenous short-
      with the S-300PMU-1 and S-300PMU-2             range SAM systems HQ-7 and HQ-61A, in
      configurations. The HQ-9 SAM system            addition to other air defense weapons
      (Chinese copy of the S-300), which can de-     which it has aggressively promoted on ex-
      feat targets at ranges in excess of 100 km,    port markets. The HQ-7 design was sold to
      employs a Chinese indigenous guided            Iran where it was successfully reproduced
      SAM      missile    derived     from     the   afterwards.
      Soviet/Russian-developed 5V55. The HQ-              It could be said with a high degree of
      9, which is operationally deployed with the    certainty that it is China who is going to
      PLA Air Defense Force, is currently com-       provide the toughest competition to Rus-
      peting in a Turkish long-range SAM tender      sia on the long-range SAM markets where
      along with Russia’s S-400 and the United       the supply of U.S. ‘Patriot’ SAM systems is
      State’s Patriot.                               impossible for political reasons. In the
            Most of 36D6/’Tin Shield’ radar sys-     medium and long term, China might be of
      tems (that provide target identification       interest to Ukraine as a potential coopera-
      and battle management for S-300-series         tion partner in bringing up to modern stan-
      batteries) have been supplied by Ukrain-       dards UAF’s SAM assets, most particularly
      ian company, the Research and Produc-          in the aspects where real alternatives to
      tion Corporation ‘Iskra’ in Zaporizhzhia.      Russian proposals might be required.
      In such a case, Russia does not even try to         The State Enterprise ‘Arsenal Fac-
      develop a more or less comparable in-          tory’ in Kiev was onetime designer of
      digenous design in the same category. It       seeker heads for the ‘Igla’-series man-
      would therefore be safe to say that            portable SAM systems, and it still offers
      Ukrainian and Russian suppliers are com-       its most advanced developments. At the
      plementing each other on the S-300-            same time, Russia has developed indige-
      series SAM market.                             nous capabilities for the design, develop-
            An upgrade package for the ‘BUK’         ment and mass manufacture of
      SAM system was developed to improve            technologies in this category. The PRC
      substantially its operational capabilities     has, since the 1970s, persistently worked
      by enhancing the high-frequency compo-         to develop and mass produce indigenous
      nent of its transmitter-receiver unit. By      copies of the ‘Strela-2’ and ‘Igla-1’
      the time the upgrade was to be launched,       portable SAM systems, and it even began
      China had established production of an         equipping them with more advanced
      indigenous copy of the BUK, along with a       guidance units of indigenously design
      missile equivalent to the 9M317. There-        and make. Today, China itself offers the
      fore, there is no reason to expect China’s     export market indigenous SAM systems
      purchasing SAM systems BUK or its              QW-1, QW-2 and NH-5 (the QW-2 has al-
      naval variants ‘Uragan’ or ‘Shtil’.            ready been exported to Bangladesh).
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                                                                        Ukraine-China:
                           from Project-to-Project Cooperation to Strategic Partnership         29

            In the field of air defense artillery,      tition with each other on all markets, in-
      Ukraine is not in a position to compete           cluding the PRC and regional markets. It
      with Russia or the PRC, as each of the three      might be noted here that Ukraine had ob-
      countries have arsenals of pretty advanced        tained a fully self-sufficient tank/AFV in-
      yet unsophisticated and cost effective air        dustry after Russia refused to assist in
      defense guns. From-scratch development            executing a large-scale tank contract from
      of an artillery system with a caliber below       the Pakistan Army. As a result, Ukraine in-
      76.2mm is widely considered to be eco-            dependently developed deficient tank
      nomically unfeasible.                             guns and a range of explosive reactive
            Therefore, in the Ukraine-Russia-           armor (ERA) designs (when asked to sup-
      China triangle, technological leadership in       ply ERA systems to support the Pakistani
      SAM weapons niche markets belongs to              contract, Russia charged a price almost
      Russia who has until recently been actively       equivalent to 10pct of the entire cost of the
      supplying its most advanced SAM designs           contract). Eventually it turned out that
      to China. Simultaneously, China has estab-        Ukrainian company ‘Microtech’ Base Cen-
      lished acceptable quality indigenous pro-         ter for Critical Technologies in Kiev, who
      duction of almost the entire range of SAM         undertook to develop ERA solutions to all
      systems, from heavy long-range systems to         types of anti-tank threats, has outpaced
      man-portable SAM launchers. The PRC               here its key competitor, the NII STALI (Sci-
      has experienced some difficulties with es-        entific Research Institute of Steel) in
      tablishing indigenous production of S-300-        Moscow. The PRC has successfully estab-
      series systems, still it is unlikely to procure   lished indigenous manufacture of ERA sys-
      more such weapons from Russia. Instead,           tems and integrated them with the PLA
      further supplies of more current-genera-          Army tank fleets. The ERA designs devel-
      tion configuration, the S-400, are possible.      oped in Russia, Ukraine and the PRC all
      In such a case, Russia will try not to trans-     have comparable specifications and price
      fer its newest technologies to the PRC until      tags, but their operational capabilities can-
      subsequent-generation designs are in              not be compared other than in a ‘combat test’.
      place. Ukraine’s capabilities in this field are         A similar situation could be ob-
      limited to repairs of SAM systems for the         served in the fields of active protection
      Ukrainian Air Force and potential export          systems and electronic warfare equip-
      customers, and upgrades of technically ob-        ment. It’s only reasonable that each of the
      solescent SAM designs for third-country           countries gives preference to indigenous
      markets.                                          designs when selecting active protection
                                                        and electronic warfare system designs to
                                                        meet requirements of their respective mil-
      Competition on the tank and                       itary forces.
      light armored fighting vehicle                          Therefore, in the domain of tank and
      (AFV) market                                      lighter AFV protection, the three coun-
           In the tank and AFV area, pretty com-        tries have comparable capacities and
      plex relationships have been developing           compete with each other, with Ukraine
      between Russia, Ukraine and the PRC.              having a slight edge over the other two.
      Ukraine and the Russian Federation both           In this niche market, Ukraine could have
      have entire clusters of tank and lighter          success on third-country markets, includ-
      AFV makers who enter into direct compe-           ing in cooperation with its competitors.
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             Ukraine-China:
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            The PRC launched indigenous manu-          ects, whereas Russians have closely coop-
      facture of main battle tanks back in the late    erated with China in the development of
      1960s when, in March 1969, during an             control systems.
      armed clash between the PRC and the So-                 Russia and Ukraine are both equipping
      viet Union along the Ussuri River on             their tanks with French-supplied infrared im-
      Damansky Island, the Chinese troops cap-         aging cameras, while having own develop-
      tured a Soviet T-62 tank. The tank was           ment and manufacturing capacities for
      carefully examined by Chinese engineers          technologies of this kind (Ural Optical Me-
      and some of its components were copied           chanical Plant (Yekaterinburg, Russia) and
      and integrated into indigenous designs.          NPK Photoprybor (Cherkasy, Ukraine),
      This suggests that the PLA Army currently        which are competing with one another on
      has in service a great deal of technically ob-   third-country markets). Unlike Russian and
      solescent armored vehicles. In the mean-         Ukrainian counterparts, tank and AFV mak-
      while, China has been procuring                  ers in China do not have the ability so far to
      new-generation tanks in limited amounts,         employ advanced Western technologies for
      probably for reverse engineering purposes.       integration into own AFV designs, which re-
      The Chinese tank Type 90/MBT-2000, de-           duces their competitive capacity on the export
      veloped from the Soviet-vintage T-72, had        market. It would be worth of note, however,
      won against Russian (T-90) and Ukrainian         that the United States and NATO have im-
      counterparts in a contract competition to        posed limitations on exports of latest-genera-
      provide a tank fleet for the Pakistan Army,      tion night vision equipment, which are
      and it has now been successfully exported        applicable to all potential customers.
      to Pakistan as Al Khalid. The Al Khalid                 Meanwhile, fierce competition has been
      tank is equipped with the Ukrainian poly-        observed between Russia, Ukraine and China
      diesel 6TD, which Pakistan had preferred         on the oversaturated export market for light
      over a Russian gas-turbine motor. So,            armored fighting vehicles. To date, this com-
      Ukrainian tank/AFV engines may hold the          petition is largely restricted to the design, de-
      promise of significant orders, most partic-      velopment and marketing of new-generation
      ularly when the Morozov Design and De-           weapons stations. Here, all the three countries
      velopment Bureau built a new, more               offer designs with roughly comparable spec-
      powerful engine.                                 ifications and operational capabilities. For this
            In February 2009, Ukrainian tank           reason, any contract award to Russia, Ukraine
      makers announced that 62 engine/trans-           or China involving the supply of AFVs, ar-
      mission packs for Al Khalids would have          mored personnel carriers (APCs) or armored
      been delivered to Pakistan before the end        vehicles should be considered as one-time-
      of September, along with an initial ship-        only contract. The Russian Federation, for in-
      ment of engine and gear boxes for special-       stance, has delivered a small shipment of one
      application vehicles. In 2008 alone,             hundred new armored GAZ-2330 TIGR ve-
      Pakistan awarded Ukrainian companies             hicles to the PRC, while Ukrainian manufac-
      $2.5mn worth of contracts for supplies of        turers have not yet found large enough
      replacement parts for purpose-built vehi-        markets for their light armored vehicle de-
      cles.                                            signs. Even so, Ukrainian products such as
            Ukrainian tank designers have cur-         the newly-designed BTR-4 or upgraded BTR-
      rently been actively engaged with Chinese        3E hold much promise with respect to export
      counterparts on a range of joint R&D proj-       opportunities.
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                                                                        Ukraine-China:
                           from Project-to-Project Cooperation to Strategic Partnership         31

            Tough competition between the three         Progress Design and Development Bureau)
      countries has been observed on the market         provide aero engines for the Russian-built
      for antitank weapons, as well. Arms factories     aircraft supplied to the PRC.
      in Russian Tula have traditionally enjoyed              Furthermore, a number of Ukrainian
      pre-eminent position here, followed by            companies complement Russian counter-
      Ukrainian company Design and Develop-             parts supplying end products; State Enter-
      ment Bureau ‘Luch’ who offers potential cus-      prise ‘Krasyliv Assembly Manufacturing
      tomers its advanced designs such as the           Plant’, JSC ‘Phasotron-Ukraine’, OJSC
      ‘Stugna’, ‘Kombat’, ‘Skif’ and ‘Baryer’ anti-     ‘Corporation FED’ and more defense com-
      tank guided weapon (ATGW) systems. As for         panies in Ukraine provide some key com-
      the PRC, it has long established indigenous       ponents        and       subsystems        for
      production of most of antitank weapons            Russian-supplied MiG-29 and Su-27 fighter
      types.                                            aircraft. These include coherent radar sys-
            Therefore, in the field of tanks and ar-    tems, communications facilities, navigation
      mored fighting vehicles, Russia, Ukraine and      aids, bomb release systems and other in-
      the PRC each enjoy comparably robust posi-        dispensable subsystems of the combat air-
      tions on third-country markets. On the one        craft.
      hand, they are competitors to one another. On           The Mi-8, Mi-17 and Kamov-series
      the other hand, Ukrainian engine systems for      helicopters supplied by Russia to export
      MBT applications have a number of advan-          customers are all equipped with Ukrain-
      tages over rival designs, and may therefore       ian-made engines, each accounting for
      hold the promise of further significant orders.   about 20pct of the aircraft’s value. In such
      The PRC does not appear to be in a rush to        a case, warranty and post-warranty servic-
      procure large enough shipments of current-        ing of the engines is provided by the en-
      generation tanks to meet the PLA Army re-         gine supplier.
      quirement. All the three countries are directly         A characteristic of aeronautical coop-
      competing with each other on third-country        eration within the Russia-Ukraine-PRC tri-
      markets. Here, the PRC enjoys traditionally       angle is that the three countries are actively
      robust position on Asian-Pacific markets,         and closely cooperating in the engineering
      while Ukrainian and Russian tank and AFV          field, with Russia and Ukraine typically
      suppliers have roughly equal export oppor-        transferring selected technologies to China
      tunities. In the niche market for light armored   and the latter providing financial support
      vehicles, standing of each of the three coun-     for selected R&D projects of interest to it-
      tries is relatively weak comparing to that of     self.
      Western suppliers, and they therefore can               ZMBK Ivchenko-Progress offers co-
      only hope for occasional contracts.               operation in developing an engine for a
                                                        projected Chinese indigenous civilian
                                                        transport aircraft. Furthermore, in May
      Competition on the aircraft                       2009, the Shenyang Aircraft Engine Plant
      market                                            proposed that ZMBK Ivchenko-Progress
           Ukrainian designers enjoy a pretty           should carry out expert evaluation of its
      stable position on the aircraft market,           12+ ton thrust aeroengine project. In the ro-
      which is the most capital-intensive market        torcraft engine field, ZMBK Ivchenko-
      segment. Here, Ukrainian companies                Progress offers the Chinese party its
      (OJSC Motor-Sich and ZMBK Ivchenko-               AI136T1 engine, an enhanced, more pow-
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             Ukraine-China:
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      erful version of the D136 engine for the              An example of multidirectional na-
      Mi-26 helicopters that the PRC purchased        ture of Ukrainian-Sino cooperation in mil-
      from Russia recently. Also, China might         itary technology might be a deal on the
      have an interest in equipping its Russian-      design, development and type certification
      supplied Mi-46 helicopters with the             of the AI-222K-25F engine for the Hongdu
      AI8000V engine (a derivative of the AI-         L-15 Falcon supersonic fighter trainer,
      222K-25F engine for fixed-wing aircraft),       which also calls for the transfer of produc-
      and the same engine type might work             tion license for the engine. ZMBK
      well with the heavy payload transport           Ivchenko-Progress would supply two pre-
      aircraft being currently developed by           production units of the AI-222K-25F engine
      China.                                          to Hongdu Aviation Industry Group
            ANTK Antonov Aeronautical Scien-          (HAIG). An appropriate contract was
      tific/Technical Corporation has been            signed during the 13th edition of Beijing
      closely engaged with its Chinese counter-       International Air Show in October 2009.
      parts, assisting in the development of the      According to the terms of the contract, the
      Y-H7/Y-14-100 aircraft (Chinese copy of         Ukrainian partner will have to design, de-
      the An-26).                                     velop, fly test and type certify the AI-222K-
            In the late 1990s/early 2000s, the PRC    25F afterburning turbofan for HIAG.
      took delivery of a large quantity of Russ-            China is determined to aggressively
      ian-supplied Su-27 and Su-30MK fighter          promote the Chengdu Aircraft Industry
      aircraft, and bought respective production      Corporation FC-1/JF-17 and J-10 fighter
      licenses. Many of repair technologies for       aircraft on potential export markets. The
      the aircraft and relating engines were          JF-17 fighter, (otherwise known as FC-1),
      bought by China from Ukraine, and it was        which was developed in a joint program
      Ukraine where Chinese engineers and             with Pakistan, has already entered service
      technicians had been taught how to do re-       with the PLAAF and Pakistan Air Force.
      pairs on the equipment. It is not impossi-      According to a high-ranking Chinese de-
      ble that Ukraine might get interested soon      fense industry official, the JF-17 has been
      in China as a partner in aircraft upgrade       selected as a top-priority project for exten-
      programs.                                       sive demonstration on the export market.
            The PRC has launched license pro-         The Pakistan Air Force alone has the re-
      duction of the Su-27, under own designa-        quirement for up to 300 aircraft in this cat-
      tion Shenyang J-11. Engines appeared to         egory to replace its legacy fleets of Chinese
      be not among the Chinese aircraft indus-        and French-supplied fighters.
      try’s strong points. But this is not the case         Earlier in 2009, China revived its ef-
      now; China has already demonstrated a           fort to build a C-130J class transport. The
      domestically designed alternative to the        Chinese Y-9 is a 77 ton indigenously de-
      Russian AL-31F jet engine it has been           signed aircraft that is back in development.
      buying to date as primary power plant for       The Y-9 is basically a stretched version of
      the Shenyang J-11. A technological break-       the 61 ton Y-8F-200, which is, in turn, a Chi-
      through achieved by China in the aircraft       nese copy, and upgrade, of the Russian
      engine area has allowed for the propor-         transport aircraft An-12. China wants to re-
      tion of Chinese-made components and             duce its dependence on Russia for trans-
      technologies to be increased from 70-75         port aircraft, and has noted the success of
      percent to 90 percent or even higher.           the latest version of the C-130, the C-130J.
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                                                                        Ukraine-China:
                           from Project-to-Project Cooperation to Strategic Partnership        33

             Ukraine has supplied 953 (1,500 ac-              Ukraine and Russia are competing
      cording to alternative sources) R-27/AA-          over Chinese contracts for limited supplies
      10 ‘Alamo’ medium-range airborne                  of relatively high-tech weapons and de-
      missiles, and Russia supplied 1,200 R-            fense equipment types. These usually in-
      73/AA-11 ‘Archer’ short-range air-to-air          volve      transfers    of    technologies,
      missiles to China. In such a case, Ukrainian      engineering documentation, manuals and
      missile producers were supplying their            production licenses. China has already suc-
      missiles directly to China to support Russ-       ceeded in launching indigenous produc-
      ian fighter aircraft supply contracts -- com-     tion of most of previously deficient
      plementing Russian missile suppliers and          technologies, and it will therefore become
      without entering into competition with            increasingly independent of Russia or
      them.                                             Ukraine as technology donors.
             As seen from the above, Russia will              Continuing mutually beneficial coop-
      not be able to maintain the current high          eration with the PRC is possible in the field
      level of aircraft exports to China in the fu-     of engineering. China is keen to invest in
      ture, as China itself is evolving into a viable   innovative technology developments and
      player of the global aeronautical market.         setting up research-and-technology parks
      Given the difficulties being experienced by       in Ukraine.
      Russia with its fifth-generation jet fighter            On the space services market, Ukraine
      project, China is set to oust Russia from         has most robust position in relation to Rus-
      third-country markets in the mid-term, and        sia and the PRC in the niche market for
      may eventually develop into the world-            space launch services. The PRC is keen to
      wide leader in the aeronautical industry.         further expand its indigenous satellite nav-
      Here, selection of aeronautical suppliers         igation and positioning system, while Rus-
      will, to a large degree, be determined by         sia and Ukraine are both interested in
      political considerations and preferences.         reverse transfer of Chinese microelectronic
      Therefore, Ukrainian companies will, for a        technology.
      certain limited period of time, be able to              On the aeronautical market, aircraft
      continue with direct supplies of missile          design companies in Ukraine and Russia
      weapons and subcontracted supplies sup-           might expect joint projects and co-devel-
      porting Russian contracts with third coun-        opment contracts with, as well as a certain
      tries.                                            amount of investment from China. In such
                                                        a case, there is a certain degree of direct
      Conclusions                                       competition being observed between air-
           In view of almost total absence of fully     craft design and development companies
      integrated system supplies under military-        in Ukraine and Russia.
      technical cooperation programs between                  On the markets for naval, aircraft,
      Ukraine and Russia, the Ukraine-Russia-           tank and AFV engines, Ukrainian suppli-
      China triangle has been progressively re-         ers are supporting export contracts for re-
      configured into a pyramid, with China at the      spective host platforms, and are therefore
      top and Ukraine and Russia a the base of the      interested in increasing supplies of naval
      pyramid. In such a case, China is financial       ships, aircraft, tanks and AFVs within the
      donor of selected new developments, while         Ukraine-Russia-China triangle.
      the Russian Federation and Ukraine act as               Russia and Ukraine are worldwide
      donors of technology and designs.                 leaders in the tank building industry.
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              Ukraine-China:
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      China does not seem to have any intent of          entirely built and furnished at a shipyard
      procuring large amounts of current-gener-          in an Asian-Pacific country and subse-
      ation tanks, but instead is keen to sell its       quently registered as a Cyprus ship.
      earlier-generation fleets to third-country               In the field of electronic warfare and
      markets. In the field of tank engines,             communications equipment, the PRC has
      Ukrainian diesels have an edge over Russ-          already achieved a certain degree of self-
      ian gas-turbine counterparts.                      sufficiency, to the extent that it can now
            In the field of naval shipbuilding, the      offer indigenous products to export mar-
      PRC has been progressively and persist-            kets. Almost only exceptions here are most
      ently developing its indigenous capacities         latest radar designs and combat informa-
      for building naval ships in all categories up      tion and control systems, which both re-
      to and including aircraft carriers, seeking a      quire sophisticated mathematical tools
      worldwide ocean presence. In such a case,          techniques to be developed and built.
      China apparently lacks adequate knowl-                   In the fields of air defense weapons,
      edge and experience. At the same time,             conventional artillery and multiple rocket
      shipbuilding yards in Ukraine and Russia           launchers, Russia has already saturated the
      have been severely underutilized (not in a         Chinese market with new technology, to the
      small part because of legislation where a          extent where Ukraine, under suitable con-
      vessel registration/license costs up to 40pct      ditions, might contract with China for re-
      of the cost of the vessel itself). For this rea-   verse transfer of technology required for
      son, it is more beneficial for a customer to       indigenous development of a multi-role
      have a vessel design developed in Ukraine          missile system and SAM system. Also,
      (as does Turkey), then to build the vessel         Ukraine might be interested in China as a
      hull indigenously, and, afterwards, get the        potential partner in repairs and upgrading
      vessel finished and furnished at shipyards         of earlier defense technologies.
      in Europe. Alternatively, a vessel could be
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                                                                        Ukraine-China:
                           from Project-to-Project Cooperation to Strategic Partnership       35

       Third chapter
      The specifics of China’s policies
      towards regional markets



       T
                   he Chinese economy targets           well as transport vehicles and construction
                   the export market, its export        machinery have all shown a strong up-
                   orientation showing a continu-       ward trend in recent years, as well. Simul-
                   ous trend of growth. In 2008,        taneously, China, who has vigorously
                   for example, China was the           worked to re-equip and re-weapon its
      world’s second largest exporter, with ex-         armed forces with advanced current-gen-
      ports amounting to 1.43 trillion US dollars.      eration arms and military hardware types,
            Even though China ranks second in           is keen to expand its presence on defense
      the world in GDP terms behind the USA             export markets, most notably in emerging
      (according to IMF data, China’s GDP ran           countries in Africa and the Middle East.
      into 7.916 trillion in the international dol-           Meanwhile, China’s standing on the
      lar equivalent in 2008), its export-driven        global defense market is pretty unique, this
      economy — with exports accounting for 80          being explained by a number of logically
      percent of the State foreign-exchange rev-        interrelating factors.
      enue and the export-targeted industries                 1. China has since 1989 been in a
      employing a combined workforce of about           quasi-blockade      situation.    Following
      20 million — makes the PRC highly de-             Tiananmen Square massacre of 1989, Euro-
      pendant on export markets. Some 20 per-           pean countries, in June 1989, imposed an
      cent of China’s gross industrial output and       embargo on arms supplies to the PRC.
      agricultural produce is geared to exports,        After the end of the Cold War era, the USA,
      the export Nomenclature comprising about          as well, became the natural opponent of
      50,000 products.                                  advanced arms and military technology ex-
            The PRC has maintained trade and            ports to the PRC. The issue of the embargo
      economic relationships with 182 countries         lift was raised several times during 2004-
      and regions of the world, of which 80 have        06, still it has remained in place to date.
      government-to-go-vernment trade agree-            This situation resulted in Russia having be-
      ments or protocols signed with China.             come the key and almost the sole source of
      PRC’s key trade partners include advanced         advanced weapons and military hardware
      and developed capitalist countries, most          designs for China, this circumstance se-
      notably the USA, Japan and Western Eu-            verely impeding the effort being made by
      rope, which all provide a combined 55 per-        the PRC to obtain most advanced systems
      cent of China’s foreign trade turnover.           and technology. As consequence, the influx
      China’s best selling product portfolio is still   of new current-generation technology into
      made up of footwear, garments and toys,           China has been limited, and as such it is
      yet the exports of electronic equipment, bi-      putting a break on the development of in-
      cycles, motorcycles and motor vehicles, as        digenous designs, thereby restricting
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             Ukraine-China:
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      China’s capabilities as exporter of ad-         during 1992-2005, on which basis the PRC
      vanced weapons types to developed na-           has set up the capability for the domestic
      tions, and narrowing its niche markets in       production of reverse engineered designs
      emerging countries as well as its traditional   and the development of indigenous
      partner nations.                                third/forth-generation designs, there
            2. The PRC has directed its effort to-    might be an expectation of the PRC return-
      wards establishing and building up own          ing to the status of major defense exporter
      R&D and manufacturing potentialities,           in the foreseeable future, thus adding to ri-
      most notably through reverse engineering        valry on that highly competition sensitive
      of foreign-designed items of equipment          market.
      with the goal of their subsequent ‘domesti-           4. Products offered by China on the
      cation’ into indigenous designs. Even at the    global defense market, being reverse engi-
      time of massive arms and military technol-      neered copies of previously procured for-
      ogy imports in 1950-62 and 1992-2005, the       eign designs, are all relatively low-tech,
      PRC was keen to establish and further de-       hence unsophisticated and cheap products,
      velop its capabilities for indigenous pro-      due to which China was present, if not
      duction and subsequent upgrading of the         dominated on defense markets in Egypt,
      weapons and military equipment types            Pakistan, Bangladesh, Thailand, Sri Lanka
      being procured from foreign suppliers. The      and Tropical Africa.
      result is that most of Chinese defense ex-            Nonetheless, China, due to its rapidly
      ports comprise products that are either re-     growing industrial and scientific research
      versed engineered copies or officially          potentialities, political weight and military
      licensed replicas of foreign designs, mak-      might, has been expanding its influence as
      ing China a viable competitor on the de-        a defense exporter with its own stable cus-
      fense export market, and particularly so        tomer base and niche markets. When ana-
      with respect to countries of origin of Par-     lyzing China’s standing on regional
      ent designs.                                    markets, it is worth of note that the PRC,
            3. The Chinese defense export has         having been under an embargo and, si-
      been notable for clearly observable cyclic-     multaneously, being a permanent member
      ity, this stemming from specific ap-            of the UN Security Council at that and,
      proaches being applied to the development       also, a member of the elite club of ‘grand’
      of indigenous arms and military technol-        nations, feels itself free to supply arms and
      ogy designs through reverse engineering.        defense equipment to the markets causing
      Periods of defense procurements, followed       some degree of concern for other defense
      by technological breakthroughs achieved         suppliers. Specifically, major recipients of
      due to the influx of new advanced technol-      Chinese defense products were Iran and
      ogy, take turns with periods of ‘domestica-     Iraq at the time when the two were warring
      tion’ where foreign designs are repackaged      against one another in 1980-88, in addition
      as Chinese and as such are subsequently         to such countries of concern as Sudan and
      mass exported to third countries. An ex-        Venezuela.
      ample of such cyclicity might be massive              In the context of China’s standing and
      defense imports during the 1950s (1950-         performance on regional markets, we feel
      1962) and the transition to massive defense     it necessary to cite here some data from a
      exports seen in the 1980s. Considering the      report by Stockholm International Peace
      second wave of defense imports observed         Research Institute (SIPRI). It follows from
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                                                                        Ukraine-China:
                           from Project-to-Project Cooperation to Strategic Partnership         37

      the SIPRI report that, in the period from      plies to the above markets was different. In
      2000 to 2008, China was supplying              Algeria’s case, for example, Ukrainian sup-
      weapons and defense equipment to Alge-         plies mostly consisted of fully-integrated
      ria, Argentina, Bangladesh, Cambodia,          weapons systems, whereas China was sup-
      Chad, the Congo, Egypt, Gabon, Ghana,          plying components and subsystems for in-
      Indonesia, Iran, Jordan, Kenya, Kuwait,        tegration with Algerian-built corvettes
      Mali, Mauritania, Myanmar, Namibia,            Djebel Chenoua FAC. Similar situations
      Nepal, Niger, Nigeria, Oman, Pakistan,         can be seen on other markets (see the table
      Rwanda, Saudi Arabia, Sierra Leone, Sri        below).
      Lanka, Sudan, Tanzania, Thailand,                    Based on the data as presented in
      Uganda, Venezuela, Zambia and Zim-             Table 1, a number of general tendencies
      babwe. In the very same period of time,        might be singled out.
      according to the same SIPRI report,                  1 Ukraine acted as supplier of compo-
      Ukraine, was supplying defense equip-          nents and subsystems for China-built items
      ment to some of the above listed countries     of defense equipment. This is most notably
      among other markets. This is about Alge-       about AI-25/DV-2 turbofans for China-sup-
      ria, Chad, the Congo, Egypt, Iran, Jordan      plied K-8 Karakorum combat capable trainer
      Kenya, Myanmar, Namibia, Nepal, Nige-          aircraft. Each and all of the recipient countries
      ria, Pakistan, Sri Lanka, Sudan, Thailand,     of the K-8 Karakorum trainer aircraft were re-
      Uganda, Zambia and Zimbabwe.                   cipients of the turbofan engines as well.
            As seen from the SPRI report, the con-         2 The PRC acted independently of
      tent of Ukrainian and Chinese defense sup-     Ukraine as component and subsystem sup-
                                                                                              Table 1
       Recipient country             Ukraine                               China
                            AI-25/DV-2 engines for       Components and subsystems for in-
                            Czech-supplied L-39          tegration with Algerian-built Djebel
                            trainer aircraft;            Chenoua FAC
                            Mi-24V/Mi-35/Hind-E
                            combat helicopters;
                            R-27/AA-10 Alamo
            Algeria
                            BVRAAM
                            R-73/AA-11 Archer
                            BVRAAM
                            R-40/AA-6 Acrid
                            BVRAAM;
                            T-72 battle tanks
                            Mi-24V/Mi-35, Mi-8/Mi-       ZFB-05 APC/ISV
                            17 helicopters;
             Chad           Su-25/Frogfoot-A ground
                            attack aircraft;
                            BTR-80 APC
                            Mi-24P/Mi-35P/Hind-F         ZFB-05 APC/ISV
            Congo           combat helicopters
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                Ukraine-China:
       38       from Project-to-Project Cooperation to Strategic Partnership



       Recipient country             Ukraine                             China
                             An-74/Coaler-B transport     K-8 Karakorum-8 trainer/combat air-
       Egypt                 aircraft                     craft assembled from kits in Egypt
                             An-74/Coaler-B Transport     Components and subsystems for
       Iran                  aircraft (1998-2002 con-     weapons systems assembled/pro-
                             tracts                       duced in Iran
                             An-32/Cline Transport air-   W-86 120MM Mortar
       Jordan
                             craft
                             BM-21 Grad 122mm MRL         Y-12 transport aircraft
       Kenya
                             T-72M1 MBT                   WZ-551 APC
                             R-27/AA-10 Alamo             Components and subsystems for
                             BVRAAM                       naval ships built in Myanmar
       Myanmar               T-72 MBT
                             BTR-3U Guardian IFV
                             MT-LB APC
                             AI-25/DV-2 Turbofan en-      K-8 Karakorum-8 trainer/combat air-
                             gines for China-supplied     craft
       Namibia
                             K-8 Karakorum                F-7MG Fighter aircraft
                             trainer/combat aircraft
                             Mi-8/Mi-17/Hip-H heli-       MA-60 transport aircraft
       Nepal
                             copters                      WZ-551 APC
                             BTR-3U Guardian IFV          F-7M Airguard Fighter aircraft
       Nigeria               Mi-24V/Mi-35/Hind-E          PL-9 SRAAM for F-7N1 combat air-
                             Combat helicopters           craft
                             Components and subsys-       Type-59-1 130mm and В-33 120mm
                             tems, particularly diesel    towed guns
                             engines for Al-Zarrar,       F-7MG fighter aircraft
                             MBT-2000 and Al Khalid       J-10/FC-20 FGA aircraft (contract may
                             tanks                        not yet signed)
                             Il-78M/Midas                 A-5C Fantan FGA aircraft
                             tanker/transport aircraft    Naval weapons and subsystems (in-
                                                          cluding C-802/CSS-N-8 anti-ship mis-
                                                          siles, Type-347G fire control radars,
       Pakistan                                           C-803 anti-ship missiles and R-440 Cro-
                                                          tale SAMs) for Jalalat FAC and Jiang-
                                                          wei (F-22P) frigates built in Pakistan
                                                          YLC-2 air surveillance radars
                                                          PL-12/SD-10 BVRAAM for JF-17 and
                                                          possibly modernized Mirage-3/5 com-
                                                          bat aircraft (contract may not yet
                                                          signed)
                                                          KJ-200 AEW&C aircraft built around
                                                          the Y-8 (delivery from 2010)
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                                                                        Ukraine-China:
                           from Project-to-Project Cooperation to Strategic Partnership   39

       Recipient country             Ukraine                            China
                            AI-25/DV-2 turbofan en-      Type-062/Shanghai patrol craft
                            gines for China-supplied     BT-6/CJ-6 trainer aircraft
                            K-8 Karakorum
           Sri Lanka        trainer/combat aircraft
                            Mi-24P/Mi-35P/Hind-F
                            combat helicopters
                            MiG-27K/Flogger-J FGA
                            aircraft
                            AI-25/DV-2 turbofan en-      Type-85-IIM tanks
                            gines for China-supplied     A-5C Fantan FGA aircraft
                            K-8 Karakorum                WZ-551 APC
            Sudan
                            trainer/combat aircraft      K-8 Karakorum-8 trainer/combat air-
                                                         craft
                                                         FN-6 portable SAMs
                            BTR-3U Guardian IFV          Pattani-class frigates
           Thailand                                      C-801/CSS-N-4/Sardine and C-
                                                         802/CSS-N-8 anti-ship missiles
                           BMP-2 IFVs                    Y-12 transport aircraft
           Uganda          MiG-21bis/Fishbed-N
                           fighter aircraft
                           AI-25/DV-2 turbofan en-       K-8 Karakorum-8 trainer/combat air-
                           gines for China-supplied      craft
             Zambia        K-8 Karakorum                 MA-60 and Y-12 transport aircraft
                           trainer/combat aircraft
                           BTR-70 APC
                           AI-25/DV-2 turbofan en-       K-8 Karakorum-8
                           gines for China-supplied      trainer/combat aircraft
           Zimbabwe        K-8 Karakorum
                           trainer/combat aircraft
                           An-12/Cub transport air-
                           craft
      plier; it did not directly supply compo-      China is going to supply Pakistan with KJ-
      nents or weapons subsystems for any of        200 AEW&C aircraft ordered for delivery
      Ukrainian-supplied items of defense           beginning in 2010. The KJ-200 is designed
      equipment (though, it is not fully clear      around the Y-8 military transport aircraft,
      whether Chinese-made components were          itself a licensed copy of the Ukrainian-de-
      present or not in Ukrainian-supplied items    signed Antonov An-12. Furthermore,
      of defense equipment).                        Nepal exported from China the M-60 tur-
           3 Weapons and items of defense           boprop 60-seat airliner that was built
      equipment supplied by China to the above      around the Y-7, again, a licensed replica of
      markets were all reverse engineered copies    the Ukrainian An-24. This tendency might
      of Ukrainian designs. As one example,         harbor the risk of China eventually seizing
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             Ukraine-China:
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      some niche markets that previously be-                 Separate mention should be made of
      longed to Ukraine, by supplying Ukrain-          the fact that, according o SIPRI, Ukraine
      ian-designed products repackaged as              was actively exporting defense products to
      Chinese or license assembled in China. The       China, while the latter was not exporting
      same pattern might be expected with re-          its defense products to Ukraine. There
      spect to the ‘Zubr’-class landing craft air      might be two explanations for this situa-
      cushion vehicle, if production of the design     tion:
      was launched in China under a Ukrainian                1 Ukraine’s defense market is effec-
      license.                                         tively closed to imports, with examples of
            4 On overlapping markets, the tough-       rare exceptions being unmanned aerial ve-
      est competition between Ukraine and              hicles bought from Israel to meet the
      China could be observed on niche markets         Ukrainian Army requirement and helicop-
      for military transport aircraft and armored      ters bought from Eurocopter to meet the
      fighting vehicles, while the least competi-      Emergencies Ministry’s requirement.
      tion could be seen on markets for helicop-       Other known occurrences of defense im-
      ters (with Ukraine supplying Mi-series           ports to Ukraine (Ukraine reported four
      retired helicopters and China supplying          such occurrences to the UN Conventional
      none), naval weapons and equipment               Weapons Registry 2008) are more intended
      (Ukraine supplied none whereas China             for re-export purposes and include Soviet-
      was aggressively promoting its products in       built items of defense equipment.
      this category), beyond visual range air-to-            2 At this stage, China has not yet
      air missiles (specifically, R-27, R-73 and R-    reached the level of technology allowing
      40 missiles which are traditional                for penetration into the defense market in
      commodities of Ukraine’s export nomen-           Ukraine who itself has in place tradition-
      clature being supplied to China among            ally strong schools of military design.
      other markets) and fighter aircraft (unlike            At the same time, as seen from the
      China, who was acting far more aggres-           SIPRI report for the 2000-2008 period,
      sively on this niche market, Ukraine had         Ukraine was actively exporting weapons,
      the sole contract to supply MiG-series           defense equipment and related parts and
      fighters to Uganda).                             subsystems to China. A few examples are
            It would be worth of note now in this      1,577 R-27/AA-10 Alamo BVR air-to-air
      context that China was supplying transport       missiles for the SU-27SK and Su-30MK fight-
      aircraft and armored fighting vehicles to the    ers (including 953 such missiles supplied
      markets which did not see any of defense         during 2005-2008, according to the UN Con-
      supplies from Ukraine in that period. One        ventional Weapons Registry), AI-25/DV-2
      example might be Chinese supplies of Y-8         turbofan engines for Chinese indigenous K-
      (licensed copy of the An-12) and MA-60           8 Karakorum combat capable trainer aircraft
      (built around the Y-7, reciprocally a licensed   (including 58 engines supplied from 1997 to
      copy of the An-24) aircraft to Tanzania and      2004, and 35 supplied during 2005-2008), 2S9
      Ghana, respectively — the markets that were      120mm self-propelled guns, R-73/AA-11
      not among Ukraine’s defense export desti-        Archer BVRAAMs, Kh-55/AS-15 Kent air-
      nations in the period under review. This fact    launched cruise missiles, passive electronic
      might be indicative either of latent competi-    monitoring radar systems ‘Kolchuga’ and
      tion or some division of defense markets be-     DT-59 gas-turbine engines for the Type
      tween Ukraine and the PRC.                       052B/C Luyang-class destroyers.
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                                                                       Ukraine-China:
                          from Project-to-Project Cooperation to Strategic Partnership        41

            Regarding the division of defense mar-     ticularly so with respect to tendencies for
      kets between Ukraine and China, it might be      markets narrowing or expanding, or over-
      noted that most of markets for Chinese de-       lapping market niches shared by Ukraine
      fense products are countries in Asia, the        and China.
      Middle East, Africa and South America.                 So, as seen from the above, Ukraine
      Also, China once supplied defense equip-         and China are pretty viable competitors on
      ment to Sudan, Venezuela and Iran.               markets for military transport aircraft and
            Simultaneously, Ukrainian defense          armored fighting vehicles, with future
      products, even though their markets over-        competition on those markets tending to
      lapped in the above listed countries with        grow further. However, as Ukraine and the
      those of China’s, preserved previously           PRC have been drawing closer together in
      won marketplaces of their own. Ukraine           areas such as the design, development,
      was supplying weapons and defense                production and upgrading of aeronautical
      equipment to ex-Soviet and ex-Warsaw             technologies, and given successful cooper-
      Pact states as well as Balkan countries, in      ation between the two countries in the tri-
      addition to the USA and Russia (them-            national Ukraine-China-Pakistan MBT-2000
      selves the world’s top defense exporters         project to produce the Al Khalid main bat-
      and the markets not seen on the list of          tle tank for the Pakistan Army, it might
      China’s defense export destinations in the       well be expected that relationships be-
      period under review) and, furthermore, to        tween Ukraine and China will progress in
      Afghanistan and Iraq (in 2006-2008). The         the direction where the two will comple-
      latter is indicative that Ukraine has been se-   ment one another, manufacturing defense
      lected by the International Anti-Terror          products both for their respective domes-
      Coalition members, including most partic-        tic markets and for third markets as well.
      ularly the USA, as a supplier of cost-effec-           Until this expectation becomes a real-
      tive yet highly-efficient European-class         ity, however, China has been manufactur-
      defense products.                                ing indigenous copies of the Ukrainian
            The SIPRI 2000—2008 report shows that      Antonov family of aircraft, specifically the
      Ukraine was supplying defense commodities        Y-5 Shijiazhuang (reverse engineered Chi-
      to 53 countries as compared to 34 for China.     nese copy of the An-2), Y-7 Xian (An-24),
            Separately, it might be noted that any     Y-8 Shaanxi (An-12), Y-9 Shaanxi (multi-
      coherent analysis of markets for Chinese         purpose transport, a variant of the Y-8X
      defense products is very difficult to do be-     Shaanxi, reciprocally a copy of the An-12),
      cause of the lack of information provided        MA-60 Xian (a 60-seat turboprop airliner
      by China on its defense export supplies.         built around the Y-7, itself a copy of the
      Unlike Ukraine who openly and accurately         An-24).While manufacturing aircraft of
      declares information on its defense sup-         these types, China has vigorously worked
      plies, China is reluctant to provide the UN      to add new variants to its family of aircraft
      Conventional Weapons Registry with full          designed as indigenous copies of Ukrain-
      information, except for disclosing identities    ian equivalents; China is currently devel-
      of recipient countries and providing             oping the Y8F-600 version with Ukrainian
      weapon descriptions, but not their precise       assistance, and it has signaled an interest
      designations. With open official informa-        in the An-70 military transport, most no-
      tion unavailable, the task of doing the          tably with regard to building an indigenous
      analysis is very complicated, and most par-      same-design equivalent. Simultaneously, the
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              Ukraine-China:
       42     from Project-to-Project Cooperation to Strategic Partnership



      PRC is keen to have foreign-designed aircraft      cently, some variants being Chinese copies of
      assembled at Chinese factories; in June 2009,      foreign designs. If Ukrainian light armored
      China delivered its fist Airbus A320 jet air-      IFV supplies were small and not numerous in
      liner assembled at the Airbus A320 Family          2000-2008 (Ukraine only supplied its BTR-3
      Final Assembly Line (FAL) in Tianjing, the         armored personnel carriers to Myanmar and
      first Airbus final assembly line to have been      Nigeria), China was far more successful with
      launched outside Europe. The Tianjing FAL is       its WZ551 and ZSL92 vehicles. Interestingly
      expected to assemble five A320s in 2009 and        enough, some reports have it that China sup-
      further 12 in 2010. In addition to this, Harbin    plied a significant shipment of WZ551
      Aircraft Industry Group Company Limited,           wheeled armored personnel carriers to Thai-
      one of China’s proven first line suppliers of      land. Other say that two hundred such vehi-
      aircraft, signed a framework contract with         cles had been ordered for delivery, and that
      Airbus in February 2009 to jointly produce         it was after completion of the Thailand con-
      composite material parts and components for        tract when the Type 85/YW-531H variant
      the A320 family of aircraft. This and other        began to be series manufactured in China to
      moves by China are apparently intended to          meet the requirements of the PLA and foreign
      lend weight to its position on aircraft markets.   customers (among then Myanmar). The fact
            As regards armored fighting vehicles         that such a considerable shipment of IFVs
      (AFVs), situation looks pretty interesting         was supplied to Thailand by China looks
      there. If Ukraine already has a ‘closed loop’      very interesting, especially considering that
      AFV-production cycle which it inherited after      Ukraine with its BTR-3U1 APC won a 2007
      the collapse of the Soviet Union, China’s AFV      tender competition to meet the Thailand
      industry has been in the early stages of de-       Army requirement for 96 wheeled armored
      velopment. Despite a great progress                troop carriers. The contract award was even-
      achieved, the Chinese AFV industry is still        tually postponed until a future date pending
      lagging far behind the international quality       completion of investigation into a bribe-tak-
      standards, its capabilities at this stage of de-   ing scandal involving high-level Thailand of-
      velopment being constrained, confined to re-       ficials. This fact by itself well illustrates the
      verse engineering of foreign-designed              degree of competition between Ukraine and
      vehicles. Excepting the Pakistan Army, the         the PRC on that specific niche market, and
      traditional customer for Chinese-built battle      this already fierce rivalry is expected to grow
      tanks, Chinese AFV exports have been lim-          still further as time goes by.
      ited to small shipments supplied to underde-              Against that background, considering
      veloped countries. Such a situation offers         China’s capability to ‘domesticate’ previously
      considerable advantages to Ukraine, not only       imported technology and items of equipment
      in terms of lesser competition, but, also, in      into indigenous designs, and the fact that
      terms of supplies of the AFV components (in-       China has been closely engaged with Ukraine
      cluding engine and gear boxes for the Pak-         in some defense technology areas, most par-
      istan Army), which China is not in a position      ticularly so in aeronautics, a further sharpen-
      to manufacture independently thus far.             ing of competition between Ukraine and
            Unlike heavyweight AFV types, the de-        China might be expected. Therefore, Ukraine
      velopment of Chinese light armored infantry        must get itself actively engaged in projects
      fighting vehicles (IFV) has enjoyed a tremen-      with China as soon as practicable – on legal
      dous growth. The Chinese portfolio of light        clearly defined contractual terms and with
      armored IFV designs has been expanded re-          longest possible contract periods.
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                                                                       Ukraine-China:
                          from Project-to-Project Cooperation to Strategic Partnership       43

       Fourth chapter
      Military-Technical Cooperation
      between Ukraine and China:
      Directions and Cooperation Patterns



       U
                     kraine and the People’s Re-       2005-06 China bought from Ukraine more
                     public of China have a rich       than 900 R-27-series air-launched missiles,
                     history with trading in arms      in addition to sporadic purchases of other
                     and defense equipment as          aerial weapons types, among them a ship-
                     well as dual-use items. Mili-     ment of bomb release systems produced by
      tary-technological cooperation between the       Krasyliv’s Assembly Manufacturing Plant.
      two countries had at different times em-         Ukrainian land warfare equipment sup-
      braced almost all areas of defense technol-      plies to China, on most occurrences, in-
      ogy — from armored fighting vehicles             cluded fully-integrated conventional
      (AFVs) to precision weapons systems and          systems such as 2C9 large-caliber artillery
      sophisticated radio-technical equipment.         systems or BTR-70 armored personnel car-
      Practices of joint work between Ukraine          riers. Regarding defense electronics,
      and China in the defense technology area         Ukraine once delivered to China a few
      have passed several milestones, and vari-        ‘Kolchuga’ passive electronic monitoring
      ous forms of cooperation have taken shape.       radar systems.
      Ukrainian-Sino military-technical coopera-             – A shift has recently been noticeable
      tion is notable for the following:               towards increasing occurrences of Ukraine
            – China, in almost all cases, is the re-   transferring production licenses (as China
      cipient of weapons systems, military hard-       places premium precisely on know-how
      ware and dual-use goods; bilateral               and production technology) and providing
      cooperative projects, as well, are held ex-      repair and maintenance services, with
      clusively for China, with isolated cases of      China being most interested in acquiring
      joint defense technology projects carried        the knowledge of principal importance for
      out for third countries;                         the development of own defense industrial
            – By the start of 2009, Ukrainian ex-      capabilities.
      ports of ready-made items or systems to                Existing cooperative projects do not
      China had reduced to almost zero, this           allow for Ukraine to participate as a full-
      being explained by China’s policy aimed to       fledged partner in the development or
      ensure its requirement for weapons and           manufacture of defense technologies
      defense equipment is to the maximum pos-         jointly with China, Ukraine’s workshare
      sible degree fulfilled through domestic          being mostly confined to ‘hot spot’ works
      production. For example, Ukraine had for         or ‘hot spot’ projects. But how could it be
      some time been one of China’s biggest sup-       otherwise if Ukraine has never invested
      pliers of guided air to-air missiles; during     money in the promotion of some or other
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               Ukraine-China:
       44      from Project-to-Project Cooperation to Strategic Partnership



      initiatives to date, its role being effectively   basis, the tasks which China thus far lacks
      reduced to performing, on the outsourcing         the expertise or capability to perform on its
        Selected international collaboration and cooperation patterns relating to R&D/pro-
                           duction of weapons and defense technologies
                 Cooperation/collaboration
         №                                                    Brief description
                           pattern
          1     Licensed production          A form of transnational cooperation providing
                                             for the selling/transfer of production informa-
                                             tion which enables a foreign government/pro-
                                             ducer to manufacture an item of defense
                                             equipment
          2     Co-production                A form of international division of labor where
                                             two or more participating countries share, based
                                             on their core expertise and knowledge in respec-
                                             tive areas, the manufacture of an item of defense
                                             equipment designed and developed by one of
                                             the participating countries
          3     Joint venture                An entity jointly owned and managed by de-
                                             fense-industrial firms/corporations of two or
                                             more countries to undertake the development
                                             and manufacture of a specific item or type of
                                             arms or defense equipment together
          4     Collaborative design and de- A form of cooperation where entities from two or
                velopment                    more countries are working together to design,
                                             develop and (usually) commercialize an item of
                                             arms or defense equipment
          5     A family of weapons system A form of international division of labor where two
                                             or more countries undertake to work together to
                                             produce a family of weapons systems or defense
                                             equipment (for example, air-to-air missiles). For this
                                             purpose, each specific weapons system or an item of
                                             defense equipment is designed and developed by
                                             one participating country to be subsequently co-
                                             manufactured by all the participating countries.
          6     Multinational strategic al-     A formal relationship between defense-industrial
                liance                          firms/corporations of two or more countries. The
                                                alliance is a cooperation aimed for a synergy where
                                                the benefits from the alliance will be greater than
                                                those from individual efforts. The strategic alliance
                                                usually provides for information swapping between
                                                partners or investigating into potentialities for fu-
                                                ture cooperation in the design, development and
                                                manufacture of new weapons types or items of de-
                                                fense equipment.
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                                                                       Ukraine-China:
                          from Project-to-Project Cooperation to Strategic Partnership        45

      own. Meanwhile, the global collaboration         sign, development and production of mili-
      best practices provide a few examples of         tary equipment types based on Soviet-era
      cooperation patterns that could be applica-      designs. Here, it has strongly reinforced its
      ble to specific areas or projects.               scientific research and industrial capabili-
            Ukraine’s interest in cooperation with     ties that enabled it to go away from de-
      China in military-political and military-        pendence upon Russia in meeting its
      technological sectors can and must be look-      defense-related requirements, and, fur-
      ing at the medium and long term. In the          thermore, to generate alternative solutions
      military-political cooperation sector,           in a number of military technology areas.
      Ukraine should direct its efforts towards        When the interests of both partners coin-
      creating an environment for a strategic          cide and optimum cooperation patterns are
      partnership to be set up between the two         identified, these potentialities, if properly
      countries, as Ukraine and China do not           employed, could help Ukraine resolve
      have ‘zones of conflict’ or differences relat-   some of the pressing problems existing
      ing to their respective national security in-    both on the domestic and global defense
      terests. In the military-technological sector,   markets.
      cooperation between Ukraine and China                  There are two aspects in which China
      should be built up with due regard for the       is distinguished from Ukraine or Russia,
      global market trends in the development          whose defense companies often act in tan-
      and production of weapons and defense            dem when carrying out projects for the
      equipment, specific nature of that ex-           PRC. First, China has built and continues
      tremely competition-sensitive market, as         building own military technical schools of
      well as the immediate top-priority goals         thought in high-technology clusters. Sec-
      the two countries are most interested to         ond, it has persistently worked to enhance
      achieve in the short term.                       and improve its industrial base on which
            China is interested in Ukraine as a co-    to produce some or other weapon of de-
      operation partner in areas such as theory        fense equipment types. These two compo-
      and practice of building aircraft carriers       nents of principal importance, specifically
      and ‘Zubr’-class landing craft air cushion       human resources and industrial base, are
      vehicles; theory and practice of employing       what will provide a strategic advantage for
      simulators for naval force training; ac-         China in re-designing and improving
      tive/passive radar equipment; ballistic          weapons and defense equipment types im-
      missile system controls; and the develop-        ported from Russia or Ukraine and, also, in
      ment of AFV and aircraft engines as well         developing indigenous defense designs.
      as gas-turbine engines.                          The extent of wear-and-tear of defense-in-
            Ukraine’s mid-term interest in mili-       dustrial assets in Ukraine and Russia is
      tary-technical cooperation with China            such that, on many occurrences, it effec-
      should comprise areas such as military           tively prohibits them from creating defense
      aeronautics (specifically fighter, military-     technology designs capable of competing
      transport and combat capable trainer air-        on the export market with Chinese-devel-
      craft), missile technology and defense           oped alternatives, particularly in terms of
      electronics. China as a military-technolog-      cost effectiveness. This, among other areas,
      ical cooperation partner is of interest to       is about microelectronics, optoelectronics
      Ukraine in that China has successfully re-       and measuring elements which intrinsi-
      solved many of the tasks relating to the de-     cally comprise the ‘nervous system’ of any
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      of weapons systems, upgraded or devel-          carried out, and it also assisted in the build-
      oped. China has acquired the strategic ad-      ing, testing and subsequent qualification of
      vantage of this kind through high-tech          the aircraft.
      equipment acquisitions from European                  As well as the ARJ-21 project,
      suppliers among other things, and the ben-      Antonov has been engaged with Shaanxi
      efit from this advantage will only grow as      Aircraft Industry Corporation (SAC) in re-
      time goes by.                                   designing the Y-8F600 aircraft – an up-
                                                      graded variant of the Y-8F400, itself a
      Aeronautics                                     Chinese copy of the Antonov’s An-12 air-
             The aeronautics sector is the one that   craft. Antonov’s workshare under the proj-
      dominates in military-technical coopera-        ect included R&D works, development of
      tion between Ukraine and China. This is no      wing production technology, building sev-
      wonder, considering Ukraine’s expertise         eral aircraft models and providing techni-
      and capabilities in this particular sector.     cal advice on aircraft testing. Remarkably
      ANTK Antonov Aeronautical Scien-                enough, it was Anonov who, at its time,
      tific/Technical Corporation, for instance,      advised China Aviation Industry Corpora-
      enjoys a pretty rich history in working to-     tion II (AVIC II) to invite Ukrainian aircraft
      gether with Chinese partners. This, above       engine makers ‘Motor-Sich’ and Ivchenko
      all, is about cooperative R&D projects and      ‘Progress’ Design Bureau to join in the Y-
      upgrades on transport (military transport)      8F600 project.
      aircraft for China. In 2002, ANTK Antonov             In September 2007, ANTK Antonov
      and China Aviation Industry Corporation I       and SAC signed a memorandum of intent
      (AVIC I) signed a contract under a Chinese      to set up Beijing’s aeronautical engineering
      program to design and develop China’s           center – a joint venture operating in full
      first ever regional turbojet airliner of the    conformity with respective legislations of
      XXI century, the ARJ-21.                        Ukraine and China. The joint venture has
             The contract provided, in particular,    been set up to perform contractually re-
      for co-development of a supercritical wing      quired works involving R&D on new air-
      for the aircraft. Antonov’s responsibilities    craft and upgrades to already existing
      under the contract included intermediate        designs; validation of new aircraft designs;
      and final calculations, computing geome-        aircraft layout design; preliminary re-
      try of the wing, building its simulation        search; project evaluation and scientific re-
      models, and evaluating the wing’s main-         search      works      of     other     kinds.
      tainability and robustness performance.         It has been projected that the joint venture
      Furthermore, Antonov subjected supercrit-       would perform development and engi-
      ical wing models of various configurations      neering work on a lightweight short take-
      to wind-tunnel testing, along with models       off and landing (STOL) transport aircraft
      of the aircraft as a whole, including the       and a medium STOL transport aircraft, as-
      ones with power jet simulators.                 sist in a Chinese project to build a large
             In addition to this, the Ukrainian       transport airplane and support upgrade
      party built a wind-tunnel model of the          projects for legacy aircraft designs.
      ARJ-21 and subjected it to high-speed tun-            Meanwhile, potentialities of China’s
      nel testing. Antonov provided Load Analy-       combat and trainer aircraft industries are
      sis on which basis the wing’s static load       of interest to Ukraine, most notably in the
      strength and fatigue evaluation had been        context of the challenges facing the Ukrain-
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      ian Air Force (UAF). Specifically, the             the fleet to be solely performed by MoD’s
      UAF’s fighter fleet of ‘lightweight’ MiG-29s       and Ministry of Industrial Policy’s repair
      and heavier Su-27s has almost reached the          facilities. But with the heavier fighter fleet
      limit of its service life, and as such the fleet   (Su-27), the situation appears to be far less
      needs to be upgraded to preserve its mili-         clear, if not threatening, given that almost
      tary usefulness. That means that the UAF           all of the UAF’s Su-27s would have
      has, first, to evaluate the fleet’s serviceabil-   reached the end of their expected service
      ity status, perform its projected reliability      life as early as by the beginning of 2010.
      analysis and, based on the results obtained,       This being the case, upgrading and life ex-
      to determine the amount and the list of the        tension of the Su-27 fleet becomes an ex-
      works to be done. Once this work is com-           tremely urgent challenge for the Ukrainian
      pleted, the fleet will need to be upgraded         Armed Forces. Unlike with the MiG-29,
      to modern standards, and this endeavor is          any kind of full-scale upgrading of the Su-
      going to be even more complex and chal-            27 would be outside the scope of the do-
      lenging. Both life extension and upgrades          mestic defense industry capabilities.
      traditionally require designer’s and               Notably enough, according to the UAF
      maker’s authorization. For Ukraine, that           Commander, Ivan Rusnak, “In the late
      issue has become a political one, as the de-       1990s/early 2000s, China bought from Rus-
      signers and makers of almost all core sys-         sia a great quantity of Su-27 and Su-30MK-
      tems in the Ukrainian Armed Forces’                type aircraft together with related
      inventory had left in Russia following the         production license. It is no secret that, as
      demise of the USSR. By 2009, not a single          strange as it may seem, it was Ukraine
      joint project relating to UAF’s fleet mod-         where repair know-how and relating en-
      ernization had existed between Ukraine             gines for the aircraft came from to China,
      and the Russian Federation. Against this           and it was Ukraine where Chinese special-
      backdrop, Ukraine’s parliament, the Verk-          ists were taught how to do repairs on the
      hovna Rada, on April 15, 2009, adopted a           aircraft of this type”.
      bill “On amending some laws of Ukraine                   China, who had been buying Su-27
      with regard to maintaining serviceability          multi-role fighters for a long period of
      and upgrading of the Ukrainian Armed               time, has already license built the Su-27,
      Forces’ weapons arsenal and equipment in-          under own designation Shenyang J-11. En-
      ventory”. Under the new legislation, the           gines appeared to be not among the Chi-
      Cabinet of Ministers and the Ministry of           nese aircraft industry’s strong points. But
      Defense are vested with the authority over         this is not the case now; China has already
      the Ukrainian Armed Forces’ weapons sys-           demonstrated a domestically designed al-
      tems and military hardware that are free           ternative to the Russian AL-31F jet engine
      from Designer Supervision. In actual fact,         it has been buying to date as primary
      this applies to the aircraft fleets, missile       power plant for the Shenyang J-11. In Feb-
      systems and other ‘disputed’ equipment             ruary 2008, Russian defense export author-
      inventories on which Ukraine and Russia            ity Rosoboronexport’s representative to the
      have never reached any sort of a mutually          PRC, Andrei Plotnikov stated that “…a
      acceptable agreement to date.                      technological breakthrough achieved by
            Regarding the MiG-29 fighter fleet,          China in the aircraft engine area has al-
      the Ukrainian MoD has developed a pro-             lowed for the proportion of Chinese-made
      gram allowing for a limited upgrading of           components and technologies to be in-
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      creased from 70-75 percent to 90 percent or      tween ANTK Antonov and the re-emerg-
      even higher”. Given the progress made by         ing Chinese aircraft corporation AVIC-I-
      China’s fighter aircraft industry recently,      AVIC-II. This option (which requires a
      Ukraine might consider recruiting Chinese        speedier pace of the process to transform
      partners to help resolve some of the tech-       the ANTK Antonov into a share-holder
      nological tasks associated with its Su-27        company) would provide a platform en-
      fleet upgrade.                                   abling parity-based cooperation and mu-
             In the military-transport aircraft sec-   tual oversight of marketing practices being
      tor, Ukrainian engagement with China             employed or work being carried out on
      might include identifying a cooperation          some or other specific market. At the same
      pattern enabling the Antonov An-70 mili-         time, this direction of joint work on the An-
      tary-transport aircraft to be licensed as-       70 project with China still allows Kiev to
      sembled in China, following a pattern            pursue its own effort aimed at advancing
      already tested by Ukraine in joint work on       the aircraft to the European market to fill
      the An-140 and An-148 aircraft projects          in the gap emerged as a result of delays
      with Iran. Such an approach might be ac-         with completion of the A400M program.
      ceptable to China as well, considering that            Furthermore, ANTK Antonov offers
      it has already employed similar patterns to      for employment on China’s airlift and com-
      establish domestic production of a range of      mercial passenger air transportation mar-
      foreign-designed aircraft types. Remark-         kets several of its current-generation
      ably, China Aviation Industry Corporation        aircraft such as the new regional airliner
      I (AVIC I), back in 2007, announced its in-      An-148, in addition to the An-74-series air-
      terest in producing a new heavy transport        craft that are currently being advanced to a
      aircraft with a payload capacity of 60+          new, higher level of development. Chinese
      tons. For this purpose, the Chinese party        customers, as before, are welcome to use
      was considering a few cooperation pat-           the Antonov Airlines’ fleet of the An-124-
      terns with Ukraine, specifically recruiting      100 ‘Ruslan’ transports. Moreover, there is
      ANTK Antonov to assist in R&D works on           an agreement on intent concerning a Chi-
      the new aircraft, buying an equity in            nese development project for a new re-
      ANTK Antonov (provided that there is an          gional 70-seat turboprop airliner.
      appropriate authorization by the Ukrain-               Regarding the trainer aircraft sector,
      ian Government) and setting up a joint           mention should be made of a proposal
      venture to support the project both in           made to a visiting Ukrainian MoD team in
      China and Ukraine.                               January 2009 to consider potentialities for
            This would be advantageous to              co-production of the supersonic trainer air-
      Ukraine in that it would allow for the An-       craft L-15, a design by the AVIC II’s
      70’s potential customer base to be ex-           Hongdu Group. In that context, it is im-
      panded to reach the large Chinese market.        portant to know that Ukraine’s OJSC
      On the other hand, this involves the risk        ‘Motor-Sich’ – the flagship aircraft engine
      that the An-70 may follow the same path as       supplier on the post-Soviet expanse — has
      the Russian-designed Su-27 which eventu-         been engaged with Chinese aircraft
      ally has become strongly ‘Chinized’ in all       builders since 2006, when it signed a con-
      of its key components and subsystems.            tract with Hongdu/AVIC II for an initial
      That risk could be alleviated, for example,      supply of AI-222-25F engines to equip the
      by way of an equity for equity swap be-          L-15s. The overall volume of the supply is
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                                                                       Ukraine-China:
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      projected to eventually amount to 200+ en-      ing program-focused foreign acquisitions,
      gines, with 10 engines delivered in 2008        it still lacks the expertise required to build
      and 22 more ordered for delivery by the         a ship of this type and dimensions. Second,
      end of 2009, at a price tag of about $1 mil-    Beijing is keen to get the indigenous carrier
      lion each. The 4000 kg thrust AI-222-25F, a     built at the earliest time possible. This all
      design by Ivchenko State Design Bureau          gives a chance for Ukrainian companies to
      ‘Progress’, is series manufactured by OJSC      get contract awards for skills and ship-
      ‘Motor-Sich’ in cooperation with MMPP           building technology transfers and for sup-
      ‘Saliut’ of Russia. As well as the L-15, it     plies of selected components and
      equips the future Russian combat-capable        subsystems for ships and naval aircraft.
      trainer Yak-130. The L-15 is powered by         Ukrainian shipbuilder ‘Black Sea Ship-
      two reheated engines. At this stage, neither    building Yard’ once built the Project 1143.5
      Motor-Sich nor MMPP Saliut have an in-          heavy aircraft carrier ‘Kuznetsov’ (which is
      terest in transferring production license for   currently operationally deployed with the
      the AI-222-25F to China.                        Russian Naval Force) and the same-class
            On January 19, 2009, the Ukrainian        Project 1143.6 aircraft carrier ‘Variag’
      MoD’s press office reported the then Min-       which was sold to China when 70-percent
      ister of Defense Yuri Yekhanurov as say-        completed. One more such ship, the Proj-
      ing: “Even though it is the L-39 attack and     ect 1143.7 heavy aircraft carrier
      training aircraft that is operationally de-     ‘Ulyanovsk’, which was designed with a
      ployed with the Ukrainian Armed Forces,         nuclear propulsion system and an enlarged
      the proposal voiced in Beijing looks highly     70-aircraft ship-borne component, was
      interesting. Here at the Ministry of De-        eventually dismantled in a building berth
      fense, sufficient capabilities exist to do      when half-completed. The shipbuilder em-
      projects of this kind. Now we are going to      ploys two dry docks large enough to ac-
      investigate into technological potentialities   commodate heavy carrier-class vessels,
      of our aircraft repair companies and hold       and it has the core expertise and technol-
      focused negotiations with Chinese repre-        ogy required for building them.
      sentatives with respect to possible produc-            In April 1998, Beijing bought from
      tion of this type of combat-capable             Ukraine the heavy aircraft carrier ‘Variag’
      airplanes”. The L-15, which comes at a          whose ownership came over to Ukraine as
      price of about $15 million, shall not be con-   a result of the Soviet Black Sea Fleet divi-
      sidered as a rival to the Russian Yak-130, at   sion between Kiev and Moscow. The build-
      least before it becomes clear which of the      ing of the ship was brought to a halt in 1992
      two aircraft with Ukrainian engines would       when it was 67-pct completed, and as such
      be better selling on the export market.         it was sold to the Chinese military for only
                                                      $28mn. By comparison, same-class current-
                                                      generation aircraft carrier costs billions to
      Naval ships and related                         build. The remarkable ‘feature’ of the deal,
      equipment and systems                           as was widely reported at the time, was
           China’s top-priority program in the        that the intent of the firm that initially pro-
      naval shipbuilding area is an indigenously      cured the ship was to renovate and refit it
      designed aircraft carrier. This program is      into a leisure and gambling center. Back
      noticeable in two aspects. First, even          then, many analysts did not preclude the
      though Beijing has continued with pursu-        possibility that the canard reports were
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      willfully distributed to disguise true intent,   of that coin is that the U.S. thinking toward
      specifically to obtain a half-built aircraft     China’s effort aimed to build its own air-
      cruiser for next to nothing. In 2008, the ship   craft carrier fleet would certainly be
      was re-designated as ‘Shi Lang’ after the        strongly negative, considering military-po-
      renowned Chinese military commander,             litical stand-off between the two countries
      which would be out of tradition for a            and their rivalries over geopolitical domi-
      casino. According to numerous media re-          nance in the Asian-Pacific region. The level
      ports, the carrier was planned to be com-        of influence the U.S. leaders have on
      pleted by 2010 and subsequently                  Ukrainian ones would be sufficient to
      commissioned with the Chinese Navy. An-          make Ukraine give up altogether any hope
      alysts are almost unanimous in the opinion       of supplying propelling plants for Chinese
      that China’s purchase of the ‘Variag’ car-       carriers.
      rier might be considered to be a latent form           China intends to have four medium-
      of scientific-technical assistance or know-      size aircraft carriers in place by 2020, with
      how transfer that saved Chinese scientists       the first-of-class planned to be integrated
      ten years’ worth of upstream materials           into the Chinese Navy by 2016. That ship
      technology research.                             is going to be of the same class as the So-
            Basically, Ukraine’s defense industry      viet-era heavy carrier ‘Variag’ with a dis-
      has the capability to equip all Chinese air-     placement in the order of about 65,000
      craft carriers with propelling plants (if the    tons. Four carrier warfare groups are ex-
      gas turbine engine type is selected as a final   pected to be deployed in the South China
      option). Mykolayiv-based State-owned             Sea and East China Sea to secure maritime
      company ‘Zoria-Mashproekt’ Research              energy corridors and safeguard China’s
      and Production Complex of Gas Turbine            territorial waters there.
      Building supplied China with a shipment                It is worthy of note that a Ukrainian
      of DA/DN-80 gas turbine engines which            trace might be found in China’s effort to
      have already been installed on four of the       build an indigenous carrier-based fighter,
      Chinese Navy’s Luyang-1/2-class multi-           under a program being carried out on a
      role destroyers. China was reported to           parallel track with the indigenous carrier.
      have bought production license for the           According to Western media reports, in
      DN-80 gas-turbine engine. Here, however,         2006, China purchased from Ukraine a T-
      some risks have to be considered. Specifi-       10K test aircraft – one of preproduction
      cally, the building of aircraft carriers for     prototypes of the Su-27 carrier-based
      China should be carried out as a trinational     fighter (ancestor of the Su-27/Su-33). No
      China-Russia-Ukraine program. This               prizes for guessing that the purchase might
      would be impracticable to implement              be intended to get into the construction of
      without Russia as the supplier of some key       the aircraft’s folding wing, ruggedized
      subsystems and components as well as             landing gear, arresting hook system and so
      naval weapons systems. In such a case, if        on. Later in 2006, China bought, presum-
      China opted to tap Russia and Ukraine for        ably from the Russian Federation, four sets
      its aircraft carrier program, one more issue     of the Su-33 naval fighter’s tailhook system
      to be addressed is the character and level       to be employed, as the buyer put it, ‘for ex-
      of military-technical cooperation between        perimentation purposes’. The Su-33’s tail-
      the latter two, which has shown a strong         hook system supply package also
      downward trend recently. The other side          comprised a set of deck take-off/landing
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                                                                        Ukraine-China:
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      equipment, including four sets of cross-          Carrier’ Project. In that event, leasing
      deck arresting gear, aircraft arresting net       Ukraine’s NITKA is supposed to be a tran-
      systems and other equipment.                      sitional tactic, waiting for the completion
            This all is closely interrelated with       of China’s own NITKA. Before this, China
      China’s interest in co-operating with             may lease NITKA for a short period of time
      Ukraine on the lease of its naval ship-borne      to have early phase computerized simula-
      pilot training center NITKA located at the        tion flight or land-based taking-off and
      Crimea Peninsula. At present, the Russian         landing training of its naval aviation pilots.
      shipborne aviation force is leasing NITKA         Such training usually takes six months.
      until 2011. The Chinese party has an inter-       Consequently, China’s lease of the training
      est in the naval pilot training center to be      center is probably short-term and its in-
      leased to the People’s Liberation Army            vestment in upgrading the training infra-
      (PLA). The establishment of the Chinese           structure at the facility would also be very
      version of NITKA pilot training center will       limited.
      lag behind the construction of aircraft car-            The second scenario is very likely
      riers, and because of this, the training of pi-   China’s leasing the training center pending
      lots should be pushed ahead first. As a           the respective stage of its aircraft carrier de-
      result, there is the need to send pilots to       velopment. When it requires training the
      Ukraine for training and thus need to lease       pilots at different stages, the lease agree-
      the NITKA training base. This is for one          ment could be limited to half a year. The
      thing. Second, the construction of the Chi-       third model is not ruled out, with China
      nese version NITKA is a very costly and           purchasing NITKA’s blueprint and soft-
      technologically demanding project, and            ware or even some of its engineers and
      also takes a long time. Particularly, this is     technicians so as to speed up the construc-
      supposed to include the take-off and ar-          tion of its own NITKA. The Chinese
      resting systems on the aircraft carrier.          NITKA may eventually be built at Hainan
      Moreover, it also requires the construction       Island.
      of supporting airports, which must be in                At this stage, the Russian Navy does
      costal regions close to the shore. Other es-      not want to share this training center with
      sential facilities include computer-based         the Chinese. Ukraine will have to work to-
      support system. NITKA is in fact a ‘land-         gether with Russia on the issue of leasing
      based aircraft carrier project’ without radar     NITKA to China, and Russia will also have
      or weapons systems.                               a share of the leasing fee. Without Russia’s
            For this reason, Russia took more than      help, the Chinese naval aviation pilots
      ten years to discuss the plan of building its     would not be able to fully master the take-
      own aircraft pilot training base and has not      off/landing training regulations on Russ-
      yet initiated the project. The prime concern      ian-style aircraft carrier even if they arrive
      is the actual number of shipborne pilots to       at NITKA
      be trained will be limited and the cost is
      very huge.
            Several scenarios might be predicted        Air-cushion vehicle programs
      for China’s lease of NITKA training facil-             China has invested much effort into
      ity. Due to the national character, China         the development of its Naval Force’s land-
      would not want to be restricted by any            ing craft air-cushion vehicle component.
      party in the course of its ‘Grand Aircraft        Particularly, it has launched practical-im-
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      plementation phase of its program to in-                The building of Project 1232.2 small
      troduce Type 071 large landing platform           landing craft air-cushion vehicles ‘Zubr’ is
      dock (LPD) into service with the PLA              becoming a separate area of Ukrainian-
      Navy. The first-of-class Type 071 was com-        Sino military cooperation. In 2008, follow-
      missioned with the PLA Navy in Novem-             ing a series of unsuccessful negotiations
      ber 2007. The vehicle is propelled by four        with the Russian Federation on the pur-
      gas-turbine engines supplied by Zoria-            chase of 10-15 Project 1232.2 ‘Zubrs’, Bei-
      Mashproekt. With the Type 071 platforms           jing entered into negotiations with Kiev. In
      in place, the PLA Navy will obtain funda-         May 2009, Ukrainian Minister of Industrial
      mentally new capabilities to be initially de-     Policy announced that the PLA Navy is
      ployed for possible offensive operations to       going to award Ukraine a contract to sup-
      seize Taiwan and, afterwards, for future          ply four Project 1232.2 landing air-cushion
      operations elsewhere in the World’s oceans        vehicles to be built by Feodosia’s FSK
      and seas. The Type 071 is designed to be-         ‘Morye’. Jane’s Defence Weekly estimated
      come PLA Navy’s core landing compo-               the cost of the future deal at $315mn, and
      nent. According to the Type 071 LPD’s             additionally reported that the contract
      official description, its sealift capability is   award was signed in Kiev by visiting
      enough to carry a battalion-size marine           deputy Chairman of the National Commit-
      corps unit, including 500-800 troops, 15-20       tee of the Chinese People's Political Con-
      amphibious armored vehicles and four              sultative Conference on July 2, 2009. Other
      landing craft air-cushion (LCAC) vehicles.        reports have it that the two parties are in
            The Type 071 LPD Program sub-               the final stage of signing the contract which
      sumes the development of an indigenous            is not advertised, simply by virtue of a va-
      LCAC vehicle design based, according to           riety of subjective and objective factors
      various reports, on a same-class U.S. de-         such as resistance on the part of some Russ-
      sign or the renowned Soviet-developed             ian businesses.
      landing air-cushion vehicle ‘Zubr’ that is              In Ukraine’s case, the contract is valu-
      currently being manufactured in Ukraine           able in terms of the number of companies
      and Russia. The ‘Zubr’ class of LCAC ve-          to be tapped for subcontracted works, in-
      hicles is intended for autonomous opera-          cluding seven potential subcontractors at
      tion to project amphibious assault assets to      the Crimea Peninsula alone. In addition,
      the designated battlefield. Conceptually, it      Beijing’s $3mn worth of initial investment
      was designed for roles such as rapid beach-       under the contract would allow FSK
      head seizure in the Black Sea and Baltic Sea      ‘Morye’ to settle its debts. Of the four vehi-
      regions. The ‘Zubr’ might be of interest to       cles contacted, two will supposedly be
      China in that its capabilities allow it to be     built in Ukraine and another two in China,
      deployed as a frontline attack component          under the supervision and with assistance
      to support possible marine assault opera-         of Ukrainian engineers and technicians.
      tions in Taiwan. Zubr’s primary role there        Lessons to be learnt from the experience
      could be the seizure of forward beachheads        with building air-cushion vehicles at its
      and support of lodgement expansion as             own yards would enable China to subse-
      follow-on forces arrive on Type 071 LPD           quently series produce this type of landing
      platforms. This means a chance for Ukrain-        assets in quantities that might be required
      ian defense companies to receive lump-sum         by the PLA Navy. Even if this is the case,
      orders that they so drastically need today.       China would not be able to replicate in full
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                                                                       Ukraine-China:
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      all the production technology involved,         potential cooperation area relates to the
      and therefore it will have to purchase some     Karakorum-8 (K-8/JL-8) basic jet trainer
      parts and components from foreign sup-          aircraft developed as a bilateral project be-
      pliers (in Ukraine and Russia). Given the       tween China and Pakistan. The K-8/JL-8
      PLA’s requirement for assets of this kind,      design allows for three choices of engines:
      there should be an expectation of substan-      U.S., indigenous Chinese or Ukrainian.
      tial Chinese orders for ‘Zubr’ ACV compo-       China’s initial choice was the U.S.-deigned
      nents and subsystems supplies.                  TFE731-2A turbofan engine. But the U.S.-
                                                      led sanction against China forced it to
      Naval and aircraft engines                      switch to the Ukrainian Motor-Sich AI-
            China’s cooperation with Zoria-           25TLK turbofan and, eventually, to the
      Mashproekt holds promise for projects be-       Chinese indigenous WS-11 (licensed copy
      yond the ‘Grand Aircraft Carrier’ program.      of the Ukrainian AI-25TLK).
      Some media sources reported that in mid-             As well as aircraft and gas-turbine en-
      2009, Zoria was awarded a $55mn contract        gines designed for integration with the mil-
      to supply four gas turbine propulsion sys-      itary equipment types being developed to
      tems to the PLA Navy. Ukrainian gas-tur-        meet the PLA’s requirement under joint
      bine engine designs might replace               projects with third countries, Ukraine is
      technically obsolescent KVG-4 steam             supplying China with AFV engines as well.
      boiler/turbine propulsion systems, and,         Pakistan’s military, after taking the deliv-
      also, could comprise the core of the propul-    ery of a shipment of T-80UD tanks from
      sion-machinery plant on the non-nuclear         Ukraine, continued with the development
      cruiser being developed in China around         effort for its indigenous Al-Khalid main
      the Soviet-vintage Type 1143.5 cruiser de-      battle tank. The Al-Khalid is a design de-
      sign. Moreover, Beijing is examining the        rived from the Chinese ‘Type T-85’ which
      prospect of its Russian-supplied Sovre-         had been series manufactured in Pakistan
      menny-class destroyers to be repaired in        until it ceased to meet modern standards.
      Ukraine. PLA’s Navy operates two Type           The Al-Khalid required an engine with an
      956-E destroyers and as many Type 956-          output of 1,200hp which China did not
      EM destroyers. What attracts China most         manufacture. Therefore, a foreign-de-
      in the prospect of having its naval ships re-   signed 1,200hp diesel was to be selected.
      paired in Ukraine is a relatively low cost of   The final choice was made in favor of a
      high quality repair services. On the other      Ukrainian engine and gear box, and
      hand, there may as well be an interest in       Ukraine, represented by trading firm
      obtaining technical documentation re-           ‘Progress’, was awarded a contract to sup-
      quired to organize repairs of naval ships       ply the tank’s most sophisticated subsys-
      and shipboard weapons systems in China.         tem to Pakistan. The Malyshev Plant, based
            In the aircraft engine sector, there is   in Kharkiv, delivered to Pakistan 15 engine
      an intensive work going on with China fo-       and gear boxes for integration with the Al-
      cused on building up aero-engine repair         Khalid during 2001. Work started in the
      capabilities. This direction of joint work      summer of 2002 on a follow-on three-year
      with the PRC may hold a promise of sig-         $100mn contract to supply 285 engine and
      nificant orders, given potential capacity of    gear boxes for upgrading other AFV types
      the market for fixed-wing aircraft and ro-      already operated by Pakistan’s Armed
      torcraft with Ukrainian engines. One more       Forces.
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      Missile systems                                      China has also demonstrated great
            China was purchasing air-launched        progress with developing and building in-
      missiles from Ukraine and Russia during        digenous surface-to-air missile (SAM) de-
      several years. In 2005/2006 alone, Ukraine     signs. The HQ-9 SAM system (Chinese
      supplied 953 (363+590) R-27 medium-            copy of the Soviet-designed S-300), which
      range airborne missiles to China. In           can defeat targets at ranges in excess of 100
      2007/2008, China did not buy R-27 mis-         km, employs a Chinese indigenous guided
      siles, which might be indicative of two        SAM       missile     derived    from     the
      things. First, China has already acquired      Soviet/Russian-developed 5V55. The HQ-
      enough missiles of this type to meet the       9 is operationally deployed with the PLA
      PLAAF requirement and, second, it has          Air Defense Force and it is currently com-
      technologically resolved the task of estab-    peting in a Turkish long-range SAM tender
      lishing indigenous production of the mis-      along with Russia’s S-400 and U.S. Patriot.
      sile design at its own factories. It’s worth   It could be said with a high degree of cer-
      mentioning now in this context that China      tainty that it is China who is going to pro-
      has already demonstrated an indigenous         vide the toughest competition to Russia on
      active radar beyond-visual-range (BVR)         the long-range SAM markets where the
      air-to-air missile design, the Ramjet SD-10.   supply of U.S. ‘Patriot’ SAM systems is im-
      This has certain engineering design and        possible for political reasons. In the
      construction features revealing a similarity   medium and long term, China might be of
      to same-class missile designs by Russian       interest to Ukraine as a potential coopera-
      designer company KB ‘Vympel’ which,            tion partner in bringing up to modern stan-
      along with Scientific Research Institute       dards UAF’s SAM assets, notably in the
      AGAT, assisted in Chinese air-to-air mis-      aspects where real alternatives to Russian
      sile developments. The SD-10 has extra         proposals might be required.
      four fore-mounted control fins on its ex-            As is the case with upgrading and life-
      tended nose body, making it outwardly          extension of the UAF fighter fleet, Ukraine
      very similar to the R-27/AA-10. The ramjet     has experienced the same difficulties with
      motor’s two rectangular inlets bear a          upgrading its air defense weapons arsenal,
      strong resemblance of inlets on the RVV-       specifically S-300-series SAM systems.
      AE-PD/R-77M-PD missile – a design that         Ukraine has since 1993 persistently pro-
      was left without Russian Government            posed that Russia should assist in upgrad-
      funding but was probably employed with         ing to modern standards and extending
      great effect by Chinese missile design en-     operational life of the UAF’s SAM weapons
      gineers.                                       inventory. To date, agreements have been
            The Ukrainian Air Force (UAF) has a      reached with Russia on a very limited num-
      requirement for long-range air-launched        ber а projects. In 2003, a joint project was
      missiles, in conformity with its ‘au-          completed to extend operational life of the
      tonomous defense’ concept. This require-       UAF’s 5V55R and S-300P SAM system in-
      ment might be fulfilled, among other           ventories from 10 to 15 years. The core of
      options, through speeding up the pace of       Ukraine’s surface-to-air missile shield is
      indigenous long-range AAM design effort,       comprised by Soviet-era S-300PT and S-
      or direct acquisitions from or development     300PS SAM systems manufactured back in
      and production of BVR missile designs          the mid-1990s and providing effective en-
      jointly with China.                            gagement ranges limited to 75 km. Newer
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                          from Project-to-Project Cooperation to Strategic Partnership       55

      and mode capable S-300-series versions had       program for its satellite navigation and po-
      never reached Ukraine, unlike China whom         sitioning system GLONASS, which was
      Russia was supplying with the S-300PMU-1         originally planned to be restored to fully
      and S-300PMU-2 configurations.                   deployed status (i.e. 24 satellites in orbit
            In this context, mention should be         and continuous global coverage) by 2010,
      made of the development effort being car-        may not be completed at the time as sched-
      ried out in Ukraine for indigenous SAM           uled due to some unforeseen difficulties,
      designs enabling air targets to be defeated      and the European Union’s Galileo satellite
      from extended ranges of up to 300 kilome-        navigation constellation may not be fully
      ters. Ukrainian developers of the indige-        deployed by 2013 as planned, as well. Both
      nous ‘Sapsan’ SAM design already                 GLONASS and planned Galileo systems
      announced that design and development            have been developed as alternative and
      work for the tactical-operational air de-        complementary to the United States’
      fense missile system would be pursued            Global Positioning System (GPS).
      without Russia’s assistance. This an-
      nouncement was made even before it be-           Defense electronics
      came clear what kind of difficulties may              In a pretty rich history of Ukrain-
      potentially emerge in developing this new        ian-Sino military cooperation, a separate
      precision-guided SAM design. The issues          place belongs to the ‘Kolchuga’ passive
      identified could be resolved using China’s       electronic monitoring radar system, a
      expertise and practical work experiences in      unique-of-its kind design by the Donetsk
      this field. When Turkey failed to obtain         TOPAZ State Joint-Stock Holding Com-
      production license for the U.S. Multiple         pany. China was the second export cus-
      Launch Rocket System M-270 MPRS,                 tomer for the Ukrainian ‘Kolchuga’ radar
      Ankara proposed partnership to Beijing.          system after Ethiopia, and ‘Kolchuga’ is
      As a result, Turkish Roketsan is series man-     the first and almost the only fully-inte-
      ufacturing for the Turkish Army tactical         grated system to have been exported by
      SAM weapons ‘Yildirim I’ with a range of         Ukraine to China’s defense market to
      150 km and ‘Yildirim II’ (300 km) designed       date. In this respect, given China’s ambi-
      around the China Aerospace Science and           tion and the ability to get ‘domesticated’
      Industry Corporation’s (CASIC) solid fuel        everything up to sophisticated high-tech
      missile B-611.                                   weapons systems into indigenous de-
            Of particular interest to Ukraine          signs, we would be so bold as to describe
      might be projects relating to access to the      the 2002 export deal for four Kolchugas
      navigation signal of China’s future Biedou       as being a genuine ‘breakthrough’. For
      Satellite Navigation and Positioning Sys-        2002, TOPAZ reported a net profit that
      tem that is slated to become fully opera-        was more than five times the respective
      tional by 2015 with 35 satellites in orbit. At   figure for the previous year, thanks in no
      this stage, China has five-satellite Beidou      small part to the Chinese contract. It
      constellation deployed in orbit, which is        could be predicted with a high degree of
      experimental and has limited coverage and        certainty that four Kolchugas will be far
      application. The Biedou constellation of         from enough to satisfy China’s require-
      navigation and positioning satellites will       ment for surveillance assets in this cate-
      eventually comprise 35 satellites offering       gory.     What     probably     prevented
      complete coverage of the globe. Russia’s         relationships with China on passive elec-
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               Ukraine-China:
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      tronic monitoring radar designs (and          ahead of all other rival designs existing
      other po tentially promising projects)        elsewhere in the world, including the
      from achieving the desired level of de-       U.S. Considerable headway in this field
      velopment was the notorious ‘Kolchuga         has now been made in Russia, still its de-
      scandal’ and resulting consequences on        signs are no competitors to the Kolchuga
      the 2002 deal with China.                     in terms of performance and operational
            In addition to Ukraine, China took      effectiveness. For this reason, the
      its beating as well, being accused, indi-     ‘Kolchuga’ chapter in Ukrainian-Sino re-
      rectly or sometimes directly, of having       lationships should not be closed alto-
      re-exported the systems to Iraq. The PRC      gether.
      Foreign Ministry even had to officially
      deny China being involved with alleged        Cooperation in space
      Ukrainian supplies of advanced ESM            technologies
      (electronic support measures) systems               Bilateral co-operation in this field is
      ‘Kolchuga’ to Iraq. The accusations           focused on projects concerned with the
      against China were catalyzed by U.S.          following:
      and UK’s allegations that the deal was              – Information swapping on techni-
      assisted by an undisclosed intermediary       cal parameters of the Chinese ‘Environ-
      country. American and British experts         ment-1-B’ and Ukrainian ‘Sich-2’ projects
      doubted the credibility of Kiev’s asser-      with the goal of forging mutually bene-
      tion that China was the intended recipi-      ficial co-operation in the exchange of
      ent of the four Kolchuga systems.             data obtained from space-based assets;
      Persistent demands that Ukraine dis-                – The supply of a laboratory instal-
      close the details of the Kolchuga deal        lation (together with related production
      with China did not, to say the least, fa-     license) required to set up production of
      cilitate further relationships growth with    spacecraft ion plasma thrusters in China;
      the U.S, as Ukraine was not in a position           – Forging mutually beneficial coop-
      to reveal data containing commercial          eration on interrelating and complemen-
      and government secrets of a foreign           tary IONOSAT Project of Ukraine and
      country.                                      China’s Seismo-Electromagnetic Satellite
            If the Chinese would successfully       Project.
      establish commercial level production of
      technologies such as the ‘Kolchuga’,
      there is no doubt they will develop (and      Specialist training programs
      sell to whatever market they choose)               Whilst Ukrainian-Sino military co-
      their indigenous equivalents, under Chi-      operation is mostly focused on exports of
      nese brand names. This task thus far ex-      fully-integrated systems, components
      ceeds China’s ability, because the            and subsystems, services and technol-
      greatest challenge here is not copying        ogy, it also encompasses a variety of
      the equipment as such but, rather, com-       training programs for Chinese military
      prehending its operational algorithm.         technology specialists. A few dozen jun-
      Ukrainian third-generation passive            ior, middle and senior-ranking PLA offi-
      radar designs, along with those devel-        cers, together with several Chinese
      oped in the Czech Republic, are streets       college professors, took training course
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                                                                      Ukraine-China:
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      at Kharkiv’s I.Kozhedub Air Force Uni-        trol of missile forces and artillery”. Fur-
      versity’s Department of Command and           thermore, Chinese engineers and techni-
      Control Computer Systems (C2CS) and           cians are undergoing training under
      Aviation Ground Support Equipment. A          specialist training programs offered by
      team of PLA Missile Force officers took       military aircraft and naval ship repair
      a refresher training course in “utilization   companies in Ukraine.
      of C2CS systems in command and con-
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       Fifth chapter
      China’s military parade as a mirror
      of its global ambitions



      B
                     eijing, on October 1, 2009, saw   deniable, there is some doubt as to whether
                     a military parade celebrating     they are truly ‘latest-generation indige-
                     China’s 60th Anniversary na-      nous’ Chinese designs. Let us look and see
                     tional day. To provide an in-     what exactly these terms imply in this par-
                     sight into modern China’s         ticular context. Ten aircraft types and two
      global ambitions, below we offer a retro-        helicopter types participated in the Octo-
      spective look at the aerial vehicle types,       ber 1 flypast show. Their specifications are
      most particularly the PLA Air Force’s fixed      presented in the table below.
      wing aircraft and helicopters that flew over           The availability of a fleet of airborne
      Beijing in a show of force, complementing        early warning and control (AEW&C) plat-
      an Army vehicle parade. Twelve air eche-         forms is a sine qua non of any modern air
      lons comprising a total of 151 fixed wing        force. It’s no coincidence that aircraft with
      aircraft and helicopters participated in this    precisely this application were the ones to
      lavish show. These air echelons included:        open the Beijing’s flypast show. These
          1 — 1 KJ-2000 AWACS aircraft; 8 J-7G         were one KJ-2000 and two KJ-200 AEW&C
          fighters;                                    aircraft.
          2 — 2 KJ-200 AWACS aircraft; 6 J-11                KJ-2000. The KongJing-2000 (KJ-2000)
          fighters;                                    is the first airborne warning and control
          3 — 9 H-6H bombers;                          system (AWACS) in service with the PLA
          4 — 2 H-6U aerial refueling tankers; 2 J-    Air Force (PLAAF), with four examples
          10 fighters; 2 J-8F fighters;                commissioned between 2006~07. The air-
          5 — 15 JH-7A fighter bombers;                craft is based on the airframe of the Russ-
          6 — 16 J-8F fighters;                        ian-made A-50/IL-76MD, but outfitted
          7 — 15 J-10 fighters;                        with a Chinese indigenous electronically
          8 — 12 J-11 fighters;                        steered phased-array (ESA) radar that is
          9 — 10 Z-8K search and rescue (SAR)          less capable than the Russian alternative
          helicopters;                                 ‘Shmel’ seen on the A-50. The KJ-2000 has
          10 — 18 WZ-9A attack helicopters with        five flight crew and possibly 10~15 mission
          anti-helicopter weapons;                     crew. The aircraft carries out patrol mis-
          11 — 18 WZ-9A attack helicopters with        sions at an altitude of 5,000~10,000m. The
          ant-tank weapons;                            maximum flight range of the aircraft is
          12 — 15 JL-8 trainer aircraft.               5,000km and the flight endurance is 7
            Official comments during the parade        hours 40 minutes. At a range of 2,000km
      described the participating aerial vehicles      and patrolling speed of 600 kmph, the air-
      as latest-generation designs developed and       craft can remain on patrol for up to 1 hour
      built in China. If their Chinese make is un-     25 minutes. The primary radar system
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                                                                      Ukraine-China:
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      housed in a radome is a three-sided elec-         vide a 360 degree coverage. The Chinese-
      tronically steered phased-array (ESA) de-         made radar system could be similar in de-
      veloped by Nanjing-based 14 institute.            sign to the IAI Phalcon, but may not be as
      Unlike the Russian A-50 or U.S. E-3, which        capable as the latter. The Phalcon system
      rotate their rotodomes to give a 360 degree       could track up to 60~100 targets at the
      coverage, the KJ-2000's radar antenna does        same time and guide a dozen fighters in
      not rotate. Instead, three ESA antenna            all-weather, day and night operations. The
      modules are placed in a triangular config-        KJ-2000 has an aerial refueling capability
      uration inside the round radome to pro-           with a nose-mounted refueling probe.
       Fixed wing and helicopter types showed off during the 60th Anniversary Parade

        Designa-
                      J-7G         J-8F         J-10            J-11        H-6H        FH-7A
          tion

         year of
         service      2004         2003         2004            1998        2002         2004
          entry

          crew          1            1              1             1           4            2

         engine
       (number/ty 1xWP-13F 2xWP 13BII 1xAL-31FN 2xAL-31FN                  2xWP-8      2xWS-9
           pe)
       thrust/with
        afterburn- 4,400/6,700 4,800/7,000 7,770/12,500 7,770/12,500        9 500    5,600/9,300
          ing, kg
       max flying
        speed,        2 450        2 300        2 450           2 500       1 014        1 810
        kmph

       max flying
                      2 200        2 200        3 400           4 000       6 000        3 650
       range, km

       operational
                       850          800         1 310           1 500       1 800        1 650
       radius, km

       operational
                      18 800      20 000       18 000          20 000       13 000      16 000
        ceiling, m

       wingspan,
                        8            9              9            15           34          13
          m
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        Designa-
                      J-7G          J-8F          J-10        J-11      H-6H       FH-7A
          tion


        length, m      15            22            15         22          35         22


         max
                        9            19            19         33          76         29
        weight, t


         combat
                        2           4,50          4,50        6,00       9,00        6,50
        payload, t

       number of
        weapon          5            7             11         10          2          11
       hardpoints

          guns       1x30mm       1x30mm        1x23mm      1x30mm       none     1x23mm

                                                           24x250-kg/ 36x250-kg/
         bombs       4x500-kg   12x250-kg       8x250-kg                         20x250-kg
                                                            8x500-kg 18x500-kg

         guided
                        -       2 LT-2/LS-6 2 LT-2/LS-6        -           -       2-4 LT-2
         bombs

        unguided
       55mm/90m        2-4           2-6           2-6     8 (80mm)
                                                                           -          -
        m missile
          units
       guided air-
                                                 2 YJ-9/                           4 KD-88/
       to-surface       -         2 Kh-31A                     -        2 YJ-63
                                                 2 YJ-8K                          4 YJ-81/91
        missiles

                                  2-6xPL-       2-6xPL-
       guided air-                8/11; 2-      8/11; 2-
                                                           2-10xR-73;
       to-air mis-   2-4xPL-8     6xPL-12;      6xPL-12;                   -       2xPL-8
                                                            2-6xR-27
          siles                    2-6xR-        2-6xR-
                                   27/77         73/77

         external
                                  1x1,400L;        1-3
        fuel tanks   1-3x720L                                none        none      2xPL-8
                                   2x800L
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                                                                      Ukraine-China:
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        Designa-
                     KJ-2000      KJ-200v       H-6U       JL-8       WZ-9A         Z-8K
          tion

         year of
         service       2007        2009         1996       1998        2005         2007
          entry

          crew
          crew       5+10-15v       2+           2          2            2              -
            v

          engine
        (number/     4xD30KP 4xPW-150B         2xWP-8    1xWS-11    2xWZ-8A 3xRT6A-67
           type)

       thrust/with
        afterburn-    12 000      4,250hp       9 500     1 720       740hp       1,941hp
          ing, kg

          flying
        range, km     5 000        5 620        6 000     2 140        1 000         700


       max flying
        speed,         850          662         1 014      800          315          255
        kmph

       operational
                        -            -          1 800        -           -              -
       radius,km


       operational
                      10 200      10 400        13,00     13 600       6 000        4 700
        ceiling, m


       wingspan,
                      50,50        38.0         34,2       9.63    11.37 (rotor) 18.9 (rotor)
          m


        length, m      46,6        34,02         35        11,6        13,46         23


         max
                       190          65           76        4,33         4,1          13
        weight, t
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        Designa-
                      KJ-2000      KJ-200v       H-6U            JL-8       WZ-9A          Z-8K
          tion


         combat
                         -            -        18.5 (fuel)        1             2            5
        payload, t

       number of
        weapon           -            -             -             5             2            -
       hardpoints

                                                                           2x12.7mm
          guns           -            -             -         1x23mm       machine-          -
                                                                             guns


         bombs           -            -             -          4x250kg          -            -


         guided
                         -            -             -              -            -            -
         bombs

        unguided
        55-90mm
                         -            -             -             4             2            -
         missile
          units
        air-to-sur-
       face guided       -            -             -              -        8xHJ-8E          -
         missiles
        air-to-air
       guided mis-       -            -             -          2xPL-8       8xTY-90          -
           siles

         external
                         -            -             -             2             -            -
        fuel tanks

           The KJ-200 is a short-range AEW&C            Improvements on Y-8F600 include: a two-
      aircraft based on a Y-8F600 airframe (vari-       man cockpit fitted with modernized avion-
      ant of the Y-8 transport, Chinese copy of         ics including U.S. Honeywell navigation
      the Soviet-designed An-12). The KJ-200 fea-       system; four Pratt and Whitney Canada
      tures a linear-shape active electronically        PW150B turboprop engines with British
      steered array mounted on top of the fuse-         Dodi R-408 six-blade propellers; increased
      lage. The aircraft is fitted with Western         take-off weight and range. It is less capable
      avionics for improved performance.                and less expensive as compared to the
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      KJ-2000, and could therefore be deployed         ers. The J-8F multi-role fighter entered the
      in less important locations.                     PLAAF service in 2003, with 20 examples
            Four fighter types, the J-7G, J-8F, J-10   placed under a single PLAAF air regiment.
      and J-11 were demonstrated during the fly-       The PLAAF currently operates a combined
      past show.                                       fleet of 254 J-8-series jet fighters. The J-8F
            The J-7G is a Chinese copy of the So-      features a JL-10 radar and WP-13BII en-
      viet-designed MiG-21F-13/Fishbed-C su-           gines. The aircraft is capable of near-
      personic jet fighter aircraft that has been      ground speeds of up to 1,300 kmph and
      license produced in China since 1967. The        climbing speeds of up to 200-240 m/s, and
      J-7G entered the PLAAF service in 2004,          operating within an 800-km radius. The
      with 24 examples having been delivered to        fixed weapon on the J-8II includes a twin-
      a single PLAAF air regiment. The J-7G is         barrel Type 23-III (a copy of the GSh-23L)
      equipped with an I/J-band KLJ-6E Lieying         23mm cannon with 200 rounds in a ventral
      (“Falcon”) pulse-Doppler fire-control radar      installation. The aircraft has seven hard-
      and an improved counter-missile ECM              points (one under fuselage and six under
      suite. Propelled by the WP-13F-type en-          wings). The center fuselage hardpoint has
      gine, it has an excellent climbing perform-      a GDJ-4 pylon integrated dispenser system,
      ance capability (195 m/s), enables               which can carry up to six 250kg low-drag
      operation within an 850km radius, and            free-fall bombs, or a 1,400 liter drop tank.
      withstands loads of up to 8g. Weapons            The under-wing hardpoints can carry up to
      complement for the J-7G includes a 30-mm         six air-to-air missiles in various configura-
      Type 30-1 gun plus up to 4 guided PL-8 air-      tions (Chinese PL-8/11/12 or Russian R-
      to-air missiles on four outer pylons, or, al-    27/77) or six unguided 55/90mm rocket
      ternatively, a 2t (4x500kg) bomb load, or up     pods, or as many 250kg free-fall bombs.
      to 4 unguided 55/90-mm rockets. For an           The two outboard wing hardpoints are also
      extended range capability, provisions are        pumped to carry two 800 liter drop tanks.
      made for up to 3 external 720L fuel tanks.       Later variants of the fighter are also con-
      The J-7 series fighters have been with-          figured to fire the Russian-made Kh-31A
      drawn from production, still they comprise       anti-ship missile or precision guided
      the majority of the PLAAF’s fighter fleet        weapons such as the LT-2 laser guided
      (756 of a 1,300-aircraft fleet) and supple-      bomb (LGB) or the LS-6 satellite guided
      ment more capable and expensive counter-         bomb. The J-8F could also be fitted with a
      parts Su-27, Su-30 and J-10. The J-7G is         fixed in-flight refueling probe. Although it
      roughly on a level with the oldest versions      has yet approached the capabilities of ad-
      of production-standard F-16 fighters in          vanced fighter aircraft such as the Su-27 or
      terms of some performance capabilities, es-      Su-30, it provides a relatively inexpensive
      pecially maneuverability.                        supplement to PLAAF’s existing third-gen-
            The J-8F is the most recent version of     eration fighter fleet.
      the J-8B fighter jet aircraft developed in             The Jian-10 (J-10) is a multirole, all-
      China from the J-8A fighter interceptor, it-     weather fighter aircraft designed for both
      self an enlarged version of the J-7 fighter      air-to-air and air-to-ground missions. The
      propelled by two WP-7 engines. The JB-8,         aircraft was originally intended to be a
      which entered series production in 1988, is      high-performance air-superiority fighter to
      comparable in performance capabilities to        counter the fourth-generation fighters such
      earlier versions of the F-4 and Su-15 fight-     as the Soviet MiG-29 and Su-27, and Tai-
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      wan’s F-16 and Mirage-2000. The develop-           drop tank + laser targeting pod. A further
      ment of the J-10 was reportedly assisted by        improved single-seat fighter variant J-10B
      Israel who provided the technologies of its        has been under development. It features a
      IAI Lavi lightweight fighter, and, in the          diffuser supersonic inlet (DSI), a Russian-
      mid-1990s, by Russia who supplied its AL-          style forward looking infrared and laser
      31F turbofan jet engine to power the air-          target designator pod and an improved
      craft. In 2004, the fighter was                    counter-missile ECM capability.
      commissioned with the PLAAF who cur-                     The Shenyang J-11 is the Chinese
      rently operates a fleet of 140 J-10s in five air   copy of the Su-27 (NATO reporting name:
      regiments. The J-10 is equipped with an in-        Flanker) air-superiority fighter built under
      digenous fire-control radar featuring a me-        Sukhoi’s license since 1998. The PLAAF op-
      chanically slewed planar array antenna,            erates a 116-aircraft fleet of J-11 in 9 air reg-
      capable of tracking 10 targets and engag-          iments. The J-11 is fitted with the
      ing 2 (using semi-active radar-homing              JL-10-type fire-control radar. Powered by
      AAM) or 4 (using active radar-homing               AL-31FN engines, it provides near-ground
      AAM) of them simultaneously. Possibly              speeds of up to 1,300 km/h and climbing
      based on Russian or Israeli technologies,          speeds of up to 300m/s. It operates within
      the radar is believed to be comparable to          a range of 1,500 km and withstands loads
      the early 1990s-era Western fighter radar          of 9g. Weapons complement includes one
      designs. The J-10 provides near-ground             30-mm gun GSh-301 plus up to 6 tons of
      speeds of up to 1,470 km/h and withstands          consumable weapons. The aircraft has 10
      loads of up to 9g. The fixed armament of           external stores stations for weapon car-
      the J-10 includes an internally-mounted            riage, three under each wing and four
      Type 23-3 twin-barrel 23mm cannon, plus            under the fuselage. Consumable weapons
      up to 4.5 tons of consumable weapons. The          include R-73, R-27 and R-27ET/ER AAMs,
      aircraft has 11 external stores stations for       250-kg and 500-kg bombs, unguided rock-
      weapon carriage, three under each wing             ets B-8V1 (20 80mm rockets in each rocket
      and five under the fuselage. The J-10 could        pod). In its air superiority role, it typically
      carry a mix of medium-range air-to-air             carries up to ten AAMs (up to four R-73s
      missiles (MRAAM), short-range air-to-air           plus up to six R-27s). Other air-to-air com-
      missiles (SRAAM) and drop tanks. Typical           bat configurations include ten R-73s, or
      air-superiority and interception weapon            two R-27ERs or six R-27ETs. For ground at-
      configurations are: 4xPL-11/12 MRAAM +             tack roles, it an carry 24x250kg bombs, or
      2xPL-8 SRAAM + 1x800ltr drop tank, or              8x500kg bombs, or up to six unguided
      2xPL-11/12 MRAAM + 2xPL-8 SRAAM +                  rocket pods. The J-11, however, is not con-
      2x1600ltr drop tanks + 1x800ltr drop tank.         figured to carry guided bombs or missiles,
      In a typical surface attack mission, the           or Chinese-made weapons.
      fighter carries up to eight 250kg bombs,                 China has developed an improved
      along with two drop tanks and two PL-8/9           version of the J-11 designated J-11B with
      SRAAMs. Typical surface attack and inter-          much greater Chinese-made content. Mod-
      diction weapon configurations for the J-10         ifications on the J-11B include an indige-
      are: 2xPL-8 SRAAMs + 6x250kg LDGP                  nous multifunctional pulse-Doppler
      bombs + 2x1,600ltr drop tanks + 1x800ltr           fire-control radar reportedly capable of
      drop tank, or 2xPL-8 SRAAMs + 2x500kg              tracking 6~8 targets and engaging 4 of
      LGB + 2x1,600ltr drop tanks + 1x800ltr             them simultaneously; an indigenous digi-
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      tal flight-control system; Chinese copy of      weapon suites for its 5th-generation fighter
      the Russian OEPS-27 electro-optic search        aircraft.
      and tracking system; a strapdown                      H-6H and JH-7A aircraft represented
      INS/GPS navigation system; a ‘glass’ cock-      PLAAF’s fighter bomber component dur-
      pit featuring four-color multifunctional        ing the flypast show.
      displays (MFD) and a wide-angle holo-                 The H-6H bomber is the latest pro-
      graphic head-up display (HUD). The air-         duction-standard version of the Soviet-de-
      craft could carry the Chinese-made PL-8         signed strategic medium bomber Tu-16
      IR-homing SRAAM and PL-12 active                Badger that was series produced in China
      radar-homing MRAAM for air-to-air com-          under a Russian license since 1968. The
      bat. It is expected to have enhanced air-to-    basic version, H-6A, was designed as a nu-
      surface attack capabilities with the            clear bomb carrier. In 1985, the PLA Navy
      indigenous precision strike ammunitions         commissioned the H-6D missile bomber
      such as LT-2 laser-guided bomb, the LS-6        armed with two YJ-61 anti-ship missiles,
      satellite-guided glide bomb, the YJ-91 (Chi-    and seven years later, in 2002, the H-6H
      nese copy of the Russian Kh-31P) anti-ra-       bomber entered service with the PLAAF
      diation missile, and the TV-guided KD-88        which currently has an inventory of 70 H-
      air-to-surface missile. The J-11B is config-    6-series bombers in seven air regiments.
      ured for the Chinese indigenous 7.5t (11.2t     The H-6H is powered by twoWP-8 turbo-
      with afterburning) thrust engine FWS-10A        jets (Chinese indigenous copy of a Russian
      (less capable copy of the Russian AL-           equivalent), enabling cruising speeds of
      31FN).                                          850 km/h and a flying range of 6,000 kilo-
            China is believed to have been con-       meters with a 6t payload. It carries two
      ducting preliminary research on its fifth-      subsonic highly maneuverable YJ-63 cruise
      generation fighter aircraft J-XX. The fighter   missiles with a range of 200 km and a 500-
      is described as an advanced F-22-class          kg warhead, or, alternatively, a 9t bomb
      twin-engine stealth fighter with extensive      load (various mixes of 250, 500, 1,500, and
      radar cross section (RCS) reduction fea-        3,000kg bombs). After China failed to ac-
      tures such as internal weapon bay. The two      quire the Tu-23M3 strategic bomber as a
      primary fighter aircraft design institutes of   successor to the now outdated H-6H, it
      the China Aviation Industries Corporation       launched the development of its upgraded
      (AVIC) – Shenyang Aircraft Design Insti-        versions H-6M and H-6K. The latter fea-
      tute (601 Institute) and Chengdu Aircraft       tures some radical modifications, including
      Design Institute (611 Institute) – have both    six under-wing pylons to carry as many
      been working on their own designs to bid        new land-attack CJ-10A extended-range
      for the PLA’s contract. In such a case, 611     (up to 1,500km) cruise missiles; two Russ-
      Institute has worked on own advanced            ian-made D-30KP 12-t thrust turbofan en-
      fighter aircraft design, possibly based on      gines (these engines would provide the
      the design and technology of its J-10           new H-6K with increased weapon payload
      fighter. The Chinese fifth-generation           and extended range); a current-generation
      fighter will feature very low RCS, provide      radar; and a completely refurnished ‘glass’
      excellent maneuverability and a supersonic      cockpit featuring six large multifunctional
      cruising speed capability. China may also       displays. The H-6M features four large py-
      seek potential partners from Russia, Israel     lons fitted under the wings to carry four YJ-
      and Europe to co-develop avionics and           81 anti-ship missiles. If necessary, the
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      bomber may also be able to carry the KD-       could be extended to 2,600km with one re-
      88 land-attack cruise missile for precision    fueling, or 3,500km with another. The Su-
      strike role.                                   33MKK carries latest-generation systems
            The JH-7A is the latest version of the   and a weapons load increased to 8 tons, in-
      basic JH-7 fighter bomber design that has      cluding active radar-homing medium-
      been in PLAAF service since 1992. The JH-      range air-to-air missiles R-77/AA-12
      7A was first delivered to the PLA Naval        Adder, Kh-59ME air-to-surface missiles,
      Aviation in early 2004, followed by the de-    Kh-31 anti-ship cruise missiles, Kh-31P
      livery to the PLAAF in late 2004. There are    anti-radiation missiles and TV-guided
      currently three JH-7/A regiments in the        KAB-500Kp glide bombs.
      PLA Naval Aviation, and a JH-7A regi-                The H-6U aerial refueling tanker air-
      ment in the PLAAF, totaling some 70 ex-        craft was developed from the H-6 twin-en-
      amples. The JH-7 is an all-weather,            gine jet bomber and was accepted into the
      two-seat, twin-engine fighter-bomber in        PLAAF service in 1996, when PLAAF was
      the same class as the European Tornado         required to expand its reach to China’s pe-
      IDS and Russian Sukhoi Su-24 Fencer. It is     ripheral regions, such as the South China
      equipped with the JL-10A multi-functional      Sea and Taiwan Strait. To achieve this tar-
      pulse-Doppler radar and powered by two         get, the PLAAF was desperate in need for
      WS-9 Qingling turbofans (a Chinese li-         an aerial refueling capability that could ex-
      censed copy of the British Mk202). The air-    tend the radius of its combat aircraft. The
      craft enables near-ground maneuvering at       navy version is designated H-6DU. It ap-
      1,210 km/h, and operates within a range of     pears to be converted from existing H-6D
      1,650 km. The JH-7A is fitted with a twin-     anti-ship missile bomber. A total of 12~20
      barrel Type 23-III (a copy of the GSh-23L)     examples of the H-6U are believed to have
      23mm cannon. Up to 5,000kg weapon              been built so far. China was reported to
      loads and/or drop tanks can be carried on      have obtained some Western-made aerial
      eleven external hardpoints (six under          refueling equipment which was later used
      wings, two on wingtips and 3 under fuse-       as a pattern for developing China’s own in-
      lage). The variant would carry four YJ-81      digenous design. The H-6 tanker carries 37
      subsonic sea-skimming anti-ship missiles       tons of aviation fuel inside its tanks,
      and two PL-8 IR-homing SRAAMs, plus a          enough to refuel six J-8D-type fighters to
      1,400L drop tank. For surface attack mis-      extend their radius to 1,200 km from 800
      sions, the JH-7A could carry up to twenty      km. Its refueling system is compatible with
      250kg low-drag general-purpose, or TV-         the J-10 and JH-7 fighter aircraft but does
      guided KD-88 air-to-surface missiles, or       not match to the Su-30MKK for which
      LT-2 laser guided bombs, or YJ-91 anti-ra-     China has ordered eight Russian Il-78
      diation missiles.                              tankers. The H-6U can transfer 18.5 tons of
            The most capable combat aircraft in      fuel to the fighter aircraft. Its refueling sys-
      service with the PLA, the Russian-supplied     tem consists if two RDC-1 refueling pods,
      Su-30MKK multi-role fighter bomber air-        allowing two fighter aircraft to be refueled
      craft was not on view at the parade. The       at the same time.
      Su-30MKK approaches the U.S. F-15E                   The JL-8 basic jet trainer aircraft was
      Strike Eagle in terms of performance and       jointly developed by the PRC and Pakistan
      capability. It has an impressive combat ra-    in the 1990s as a successor to the Cessna T-
      dius of 1,600km without refueling, which       37 jet trainers in the Pakistani Air Force
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      service. The aircraft is powered by the          electronic countermeasures (ECM) suite
      Ukrainian 1.7t thrust AI-25TL turbofan (or       consists of radar warning receiver (RWR),
      its Chinese copy WS-11). In its ground at-       laser warning receiver, infrared jammer
      tack configuration, there are four under-        and chaff/flare decoy dispenser. The heli-
      wing pylons to carry up to 1,000kg               copter is thought to be fitted with a ‘fly-by-
      payload, each rated at 250kg. The stations       wire‘ (FBW) control system, and a modern
      can carry drop tanks, 23mm cannon pods,          glass cockpit with multifunctional display
      unguided rockets, 250kg bombs or two PL-         (MFD) screens. The helicopter is fitted with
      8-type short-range air-to-air missiles. Rus-     a 30mm cannon mounted under the nose,
      sia reportedly assisted the PLAAF to build       this being controlled from the pilot’s hel-
      the more capable JL-15 (a copy of its Yak-       met-mounted sight. A new-generation
      130 trainer jet) powered by Ukrainian AL-        anti-tank guided missile (ATGM) HJ-10 is
      222K-25F motors.                                 currently in development. The missile is
             The PLAAF’s helicopter component          thought to be comparable to the U.S. AGM-
      was represented by the WZ-9A and Z-8K            114 Hellfire. The helicopter can carry up to
      rotorcraft, which both are variants of Chi-      eight such missiles under the stub wings
      nese copies of the French-designed               for anti-armor role. Alternatively, the heli-
      AS365N and SA321J choppers, respec-              copter can carry unguided rocket pods for
      tively.                                          ground attack, or TY-90 short-range air-to-
            The WZ-9A is the most recent and ca-       air missiles for air combat. The Z-10 proto-
      pable member of the WZ-9 family of attack        type is powered by two Pratt & Whitney
      helicopters, introduced into the PLAAF           Canada PT6C-67C turboshaft engines of
      service in 2005. It is powered by two WZ-        which ten have been procured by China for
      8A turboshafts (a copy of the French Arriel      its Z-10 program. The WZ-9A with Chinese
      IC1), and features a nose-mounted                indigenous engine WZ-9 is rapidly ap-
      day/night sighting pod. The helicopter has       proaching full-scale series production ma-
      two weapon pylons to carry 4 (or 8 on the        turity.
      Z-9WA) HJ-8 wire-guided anti-tank mis-                 The PLA Air Force introduced the Z-
      siles. Alternatively, the helicopter can carry   8K as a dedicated search and rescue (SAR)
      two 12.7mm machine gun pods, or two              helicopter in 2007. It is powered by three
      57mm or 90mm unguided rocket pods, or            Pratt & Whitney Canada PT6A-67B tur-
      four TY-90 IR-homing air-to-air missiles         boshaft engines. The Z-8K has a hoist with
      (6km range).                                     winch and scoop fitted externally above
            The dedicated attack helicopter WZ-        the starboard side cabin door for rescue
      10 is being developed as a successor to the      missions. For transport missions, the heli-
      WZ-9A, and it is thought to be in the same       copter can carry 27 armed soldiers, or 15
      class as the Agusta A-129 and Tiger. Eight       patient litters and a medical staff, or
      prototypes have been built and now un-           5,000kg cargo externally on sling.
      dergoing test and evaluation. An observa-              The most capable combat helicopters
      tion unit consisting of a forward looking        in service with the PLA Air Force, the
      infrared (FLIR), a low-light television and a    Russian-supplied Mi-171 and Mi-17V-5/7
      laser rangefinder/designator mounted on          were not to be seen during the parade.
      a steerable platform at the nose of the heli-          Intuitively enough, the fixed wing air-
      copter. All the critical systems on the heli-    craft and helicopter examples demon-
      copter have armor protection. The                strated during the 60th national day
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      military parade in Beijing more reflect ac-        transports (or their reverse engineered
      complishments by the Chinese aeronauti-            copies), the H-6H bomber and H-6U aerial
      cal research and design community than             refueling tanker are modified licensed
      the current status of the PLAAF’s fleet. In        copies of the Tupolev Tu-16, the J-7G
      actual fact, however, the PLAAF’s fleet is         fighter is a redesigned Chinese copy of the
      to a large degree obsolete and worn-out.           Soviet-era MiG-21F-13/Fishbed-C super-
      Especially, its 1300-aircraft fighter fleet        sonic jet fighter, the J-11 is a licensed copy
      only comprises 300 examples of the rela-           of the Cu-27SK, and, finally, the WZ-9A
      tively current-generation fighter types seen       and Z-8K helicopters are variants of Chi-
      during the October 1 air show (24 J-7Gs, 20        nese copies of the French designs AS365N
      J-8Fs, 140 J-10s and 116 J-11s). With the 32       and SA321J, respectively. As well as assis-
      Su-27s, this figure would amount to 332 ex-        tance from foreign engineers and licensed
      amples or 26 percent of the PLAAF’s                production in China, direct cloning of for-
      fighter fleet, the remaining 74 percent            eign designs and industrial spying were
      being technologically obsolete examples of         heavily involved in the development of
      the J-7 and J-8 series. Of the existing fleet of   these aerial vehicles. Depreciation of the
      550 fighter bombers in the PLAAF service,          PLAAF’s fleet and China’s ambition to
      the JH-7A bombers shown off at the parade          have a modern air force equipped with in-
      only account for 70 examples or 13 percent.        digenous current-generation aircraft and
      With the 73 Su-30MKKs, the fleet of rela-          aerial weapons systems, supported by its
      tively advanced attack aircraft would make         growing financial capabilities and the re-
      143 examples, or, again 26 percent, the re-        fusal by the United States and other devel-
      maining 74 percent being antiquated by             oped nations to provide Beijing with
      modern standards Q-5C/D ground-attack              advanced military technologies and know-
      fighters.                                          how – this all may well be the rationale be-
            Of the all 12 fixed wing and rotary          hind China’s ‘by all means or foul’ policy.
      wing aircraft types seen during the na-            Such a pragmatic approach would be fully
      tional day parade, only 4 fixed wing air-          justifiable from the perspective of China’s
      craft, specifically the J-8F, JH-7A, J-10 and      top-priority national interests. The USSR,
      JL-8 could be considered indigenous (to a          in its own good time, pursued a similar
      limited extent, though) Chinese designs.           policy of competitive intelligence and di-
      The J-8F was developed by way of modify-           rect copying of foreign aeronautical de-
      ing and improving, under a Russian li-             signs. Especially, the Tu-4 strategic bomber
      cense, the Soviet-era MiG-21F-13 fighter jet,      was developed as a reverse engineered
      and it was based on the layout of the Soviet       copy of the Boeing B-29 bomber. China em-
      Sukhoi Su-15 Flagon-A fighter. The J-10            ploys a variety of patterns for copying for-
      was developed around the Israeli IAI ‘Lavi’        eign designs. One demonstrative example
      experimental fighter with assistance from          might be the J-11B, the Chinese clone of the
      foreign engineers. All the four ‘indigenous’       Russian Su-27SK. In 1995, the Russians
      Chinese designs involve foreign-supplied           agreed in principle to allow the PRC to
      engines (or their reverse engineered               build the Su-27SK single-seat fighter lo-
      copies), subsystems and weapons. The               cally under license. In 1996, Sukhoi Com-
      other designs are ‘indigenous’ to an even          pany (JSC) and SAC entered into a contract
      lesser extent; the AEW&C aircraft designs          for the co-production of 200 Su-27SK fight-
      were derived from foreign-developed                ers as the J-11. Under the terms of the
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      agreement, Sukhoi/KnAAPO would sup-              8 SRAAM, PL-11/12 MRAAM, CJ-10
      ply the aircraft in kit form to be assembled     strategic cruise missile, YJ-63 and KD-88
      by SAC. It was reported that Russia also         air-to-surface missiles, YJ-81 anti-ship mis-
      agreed to help the PRC gradually increase        siles, laser and satellite-guided bombs LT-
      the proportion of Chinese-made content on        2 and LS-6, and the helicopter-launched
      the J-11, so that SAC could eventually pro-      ATG missile HJ-10. Development effort has
      duce the aircraft independently. In No-          been in progress for the strategic UAV de-
      vember 2004, however, Russian media              sign WZ-2000 that would be similar to the
      reported that the J-11 production had            United States’ Global Hawk, as well as for
      stopped after about 100 examples were            the future fifth-generation J-XX fighter,
      built. According to the report, the Chinese      special-mission WZ-10 attack helicopter,
      side had requested Sukhoi Company to             and the Z-15 multirole helicopter. The de-
      stop deliveries of the assembly kits. The        velopment level of China’s engine building
      contract had been terminated when half-          industry is still lagging behind other sec-
      completed, and the Chinese copy, the fully       tors’, still, this gap has been gradually
      indigenously built J-11B, eventually had         bridged.
      been brought to the picture. In response to            Ukrainian-Sino cooperation in mili-
      accusations of copyright abuse and breach        tary aeronautics has been restricted to sup-
      of terms of the contract, the Chinese side       plies of individual examples, subsystems
      threatened to refuse awarding further            and components, and the transfer/selling
      highly lucrative contracts. Another exam-        of licenses and know-how. Especially this
      ple is the Kh-55 strategic cruise missile,       is about engines (and related production li-
      which is now being manufactured in China         censes) for the JL-8 and JL-15 trainers, mo-
      under local designation CJ-10A, a few            tors for Russian-supplied Mi-171 and
      years after an amount of such missiles was       Mi-17B-5/7 helicopters, maintenance tech-
      bought by China from Ukraine. The third          nology for the AL-31FN engine, R-27/AA-
      example could be the Ukrainian-supplied          10 Alamo medium-to-long-range air-to-air
      T-10K experimental aircraft around which         missiles, a shipment of Kh-55 cruise mis-
      a naval fighter is being developed for fu-       siles and the experimental aircraft T-10K.
      ture Chinese aircraft carriers.                        The Center for Army, Conversion and
            The PRC has over the past decade           Disarmament Studies recently expressed a
      made major achievements in the develop-          suggestion to boost this cooperation, par-
      ment of its scientific and technological         ticularly with regard to co-production of
      bases, especially with respect of avionics.      the JL-15 trainer aircraft (as has already
      This allowed China to develop and launch         been proposed by the PRC) and the possi-
      domestic production of radar equipment           bility of China assisting Ukraine in bring-
      for AEW&C applications, J-10 and JH-7            ing up to modern standards the UAF’s
      fighter aircraft, upgraded/modified ver-         Su-27 fighter fleet.
      sions of the J-7, J-8B and H-6 fixed wing air-
      craft, and Z-8 and WZ-9 helicopters.
      Additionally, 100-percent Chinese made           Conclusions
      aircraft J-10B and J-11B have been brought            First, the October 1 military flypast
      into being. Also, China has achieved a           show in Beijing involved 151 Chinese-built
      great success in the development of preci-       aerial vehicles of 12 types: two AEW&C
      sion-guided air-launched weapons: the PL-        platforms (KJ-2000 and KJ-200), four fight-
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      ers (J-7G, J-8F, J-10 and J-11), two attack air-   ters, J-10B and J-11B fighters; precision-
      craft (H-6H bomber and JH-7A fighter               guided air-launched weapons: the PL-8
      bomber), one aerial refueling tanker (H-           SRAAM, PL-11/12 MRAAM, CJ-10 strate-
      6U), one trainer aircraft (JL-8), one combat       gic cruise missile, YJ-63 and KD-88 air-to-
      helicopter (WZ-9A) and one SAR helicop-            surface missiles, YJ-81 anti-ship missiles,
      ter (Z-8K). Of these 12 types, only four           laser and satellite-guided bombs LT-2 and
      could be considered indigenous (to a lim-          LS-6, and the helicopter-launched ATG
      ited extent) Chinese designs. These are the        missile HJ-10. Development effort has been
      J-8F, J-10, JH-7A and JL-8, which, however,        in progress for the strategic UAV design
      include foreign-designed (or reverse engi-         WZ-2000, the future fifth-generation J-XX
      neered) key components such as engines,            fighter, special-mission WZ-10 attack heli-
      selected mission systems and weapons.              copter, and the Z-15 multirole helicopter.
      Other designs are indigenous to an even                  Third, military-technical cooperation
      lesser extent; the AEW&C aircraft designs          between Ukraine and the PRC in the field
      are built around a foreign-designed trans-         of military aeronautics has been restricted
      port aircraft or its Chinese copy, the             to supplies of individual examples, sub-
      bomber, aerial tanker and fighters are             systems and components, and the selling
      modified versions of foreign supplied              of licenses and know-how (engines for the
      equivalents, and the helicopters are reverse       JL-8 and JL-15 trainers, motors for the
      engineered copies of foreign-supplied              Russian-supplied Mi-171 and Mi-17B-5/7
      counterparts.                                      helicopters, R-27/AA-10 Alamo medium-
            Second, the PRC has over the past            to-long-range air-to-air missiles and so on).
      decade made major achievements in the              The Center for Army, Conversion and Dis-
      development of its scientific and techno-          armament Studies recently expressed a
      logical bases, which allowed it to develop         suggestion to boost this cooperation, par-
      and launch domestic production of the              ticularly with regard to co-production of
      KLJ-2000 and KJ-200 AEW&C aircraft, J-10           the JL-15 trainer aircraft and the possibility
      and JH-7 fighter aircraft, upgraded/modi-          of China assisting Ukraine in the UAF’s Su-
      fied versions of the J-7, J-8B and H-6 fixed       27 fighter fleet upgrade.
      wing aircraft, and Z-8 and WZ-9 helicop-
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      CACDS expert conclusions

            1.As geopolitical situation around              4.A characteristic of Chinese leader-
      Ukraine has been going from bad to worse,       ship is that they are disinclined to take fast
      and given the emergence of fundamentally        decision but, rather, tend to thoroughly ex-
      new threats and challenges, the transition      amine and weigh in the balance all the op-
      from cooperation on a project-by-project        tions available before determining an
      basis to strategic partnership with the Peo-    acceptable response. Key factors here, as
      ple’s Republic of China holds the promise       before, are a partner’s consistency and a
      of huge benefits in terms of politics, econ-    high enough level of contacts between
      omy, military technology and defense se-        upper reaches of political establishments,
      curity, all the more so as there are no         not excepting the supreme leaders of the
      conflicts or points of disaccord in relation-   two states. China’s policies towards Pak-
      ships between Ukraine and the PRC.              istan might provide for Ukraine an impor-
            2.Being a powerful, independent cen-      tant demonstrative example about how
      ter of influence of global proportions, the     problematic geopolitical issues should be
      PRC, by virtue of its technological and         dealt with. By reinforcing Pakistan, China
      geopolitical ambitions, has an apparent in-     thereby weakens India whom it considers
      terest in Ukraine. Even though the differ-      to be its rival in the region. The possibility
      ence in mentalities between the Ukrainian       is not fully ruled out that China’s territo-
      and Chinese nations remains wide enough,        rial ambitions and general geopolitical ex-
      a sustainable tendency towards a Eu-            pectations with regard to the Far East
      ropeization of China is making this gap         might spur Beijing to begin actively rein-
      somewhat smaller. Furthermore, there is a       forcing Ukraine as an anti-Russian center
      large enough population of Soviet School        of influence on the Western front. Many ex-
      adherents remaining in China, which feeds       perts believe that China has already
      a considerable amount of interest in            launched a cautious advance on Russian
      Ukrainian culture in general and Ukrain-        interests. The important positive side to
      ian universities in particular.                 Ukraine’s rapprochement with China is
            3.The PRC might potentially act as se-    that it does not affect or run counter to its
      curity guarantor for Ukraine. Although          rapprochement with Russia.
      China’s interest in Ukraine is primarily              5.The PRC has already outpaced
      technological, another aspect of that inter-    Ukraine in the development and produc-
      est is that Kiev never attaches any political   tion of some defense technologies, most
      strings or requirements to joint projects in    particularly fighter aircraft, SAM weapons
      sensitive sectors and, furthermore, Ukraine     and tactical/operational missile systems.
      is a potent potential market for Chinese        For Ukraine, building an indigenous multi-
      goods. The PRC pursues a vigorous yet           role short-range missile system is a top-pri-
      well thought-out, thoroughly balanced and       ority challenge in homeland defense
      consistent foreign policy, and, for this rea-   system. Ukrainian designers, while having
      son, it is very unlikely to agree to provide    a history in the field of strategic missile sys-
      assurances of any kind.                         tems, do not have any experience in the de-
CIAKR:Layout 1   23.11.2009     5:11    Page 82




             Ukraine-China:
       72    from Project-to-Project Cooperation to Strategic Partnership



      velopment of tactical/operational missile      supplier, exporting high-tech weapons sys-
      weapons. For this reason, relevant skills      tems and items of defense equipment, and
      and technology transfers with the PRC          continuously adding new products and
      would be quite justifiable and feasible. In-   services to its defense export portfolio. Pak-
      tuitively enough, that issue must be ap-       istan, a onetime traditional military-tech-
      proached with great caution, as some           nological cooperation partner of Ukraine,
      problems may arise here, both in the con-      has now preferred China as its closest part-
      text of limitations stemming from the in-      ner, most notably in the tank/AFV and
      ternational Missile Technology Control         ATGW areas of military technology. This
      Regime (MTCR) and at the level of rela-        reflects a more inclusive tendency of
      tionships with the United States. By the       Ukraine to be gradually ousted from its tra-
      very fact of seeking such an opportunity in    ditional markets in Asia and Africa by
      relations with the PRC, Kiev sends a mes-      China, unless a framework for cooperation
      sage to international community that           with China on third-country markets --
      Ukraine deserves better attitude on behalf     particularly through advancing joint proj-
      of the key players of global politics who      ects – can be established. It, however, must
      tend to take little if any account of          be appreciated that the PRC, in contrast to
      Ukraine’s vital interests.                     India, has taken very cautious approach to-
            6. Cooperation in military technology    wards selecting joint projects with foreign
      with China would allow Ukraine to build        partners.
      up its defense capacity and technological            8. Further advancement of Ukrain-
      capabilities by carrying out a range of mu-    ian interests in China calls for an intensifi-
      tually beneficial projects. The PRC has re-    cation of bilateral contacts at the top
      inforced substantially its research and        national level. In this particular context, not
      manufacturing potentialities, thereby en-      only is the issue of lobbying for coopera-
      abling itself to go away from onetime de-      tion with China of paramount importance,
      pendence upon Russia as defense supplier,      it also is a critical precondition for and part
      and, furthermore, to generate alternative      and parcel of Ukrainian-Chinese friend-
      solutions in a number of military technol-     ship, providing that there is an intention to
      ogy areas. Ukraine must create an environ-     develop the friendship into strategic part-
      ment for some of these new Chinese             nership. At this point in time, the level of
      technologies to be employed, on a mutu-        contacts between top leaders of the two
      ally beneficial basis, for Ukrainian Armed     countries is apparently insufficient, which
      Forces re-equipment and re-weaponing           in no way facilitates the task of bringing
      programs as well as for joint projects on      the relationships to a strategic level. Iner-
      third-country markets.                         tia in relationships between top leaders of
            7. The PRC has, year by year, been       the two countries is the main impediment
      evolving into a powerful global defense        to progress in Ukrainian-Sino relations.
soder_eng:Layout 1     23.11.2009      10:57    Page 1




                                           Contents
           Introduction.
             Why China?................................................................................2

           First chapter
             In search of comprehensive guarantees................................5

           Second chapter.
             Place of Ukraine in the
             China-Ukraine-Russia triangle.............................................13

           Third chapter
             The specifics of China’s policies
             towards regional markets.......................................................35

           Forth chapter
             Military-Technical Cooperation
             between Ukraine and China: Directions
             and Cooperation Patterns.......................................................43

           Fifth chapter
             China’s military parade as a mirror
             of its global ambitions ...........................................................57

           CACDS conclusions.................................................................71

UKRAINE – CHINA: from Project-to-Project Cooperation to Strategic Partnership

  • 1.
    2st:Layout 1 23.11.2009 0:45 Page 1 Valentyn Badrak (edt.) Sergei Zhurets (edt.) Dmitriy Bogdanov Vladimir Kopchak Olga Nabochenko Alexei Yarovoj Ukraine — China: from Project-to-Project Cooperation to Strategic Partnership Published by the Center for Army, Conversion and Disarmament Studies Kyiv - 2009
  • 2.
    avtori:Layout 1 23.11.2009 4:38 Page 3 Ukraine-China: 2 from Project-to-Project Cooperation to Strategic Partnership Valentyn Sergei BADRAK ZHURETS Introduction. Why China? In the current situation — whereby $4.402 trillion (according to IMF data for geopolitical scenery around Ukraine is get- 2008), China is wealthy enough to meet its ting worse, fundamentally new challenges huge defense requirement. and threats are brought into being, In nominal GDP terms, the PRC is NATO’s key European players Germany now the third biggest economy in the and France are refusing to further support world, lagging only the United State and Ukraine, and the United States is keeping Japan. Amidst the ongoing global eco- silence over all this — China’s potential nomic recession, the World Bank revised role has risen significantly in the eyes of its 2009 economic growth forecast for Ukrainian military-political establishment. China to 8.4%, up from the projection of The PRC has silently evolved into a pow- 7.2% made in June. China’s economy grew erful, almost independent center of influ- 6.1% in the first quarter of 2009, but recov- ence on the planet; it has entered the elite ered to 7.9% in the second quarter and 8.9% club of permanent members of the UN Se- in the third, according to the PRC National curity Council, and boasts of having the Bureau of Statistics. world’s biggest military force of 2.25 mil- At the present stage of civilization’s lion. China’s defense expenditure in- development, amidst complex globaliza- creased 14.9% in 2009 to reach well past $84 tion processes, the PRC is set to take upon billion – the world’s second largest defense itself an alternative mission of global pro- budget behind that of the United States. portions. China — who achieved a GDP Having the world’s biggest foreign trade growth at a time of severe global economic turnover of $2.5 trillion and a GDP of slowdown, and increased its foreign trade
  • 3.
    avtori:Layout 1 23.11.2009 4:38 Page 4 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 3 turnover by 21% from last year — has of influence on the Western front. Of much to be proud of (the PRC is reported course, this is simply a matter of specula- to have already outpaced Japan by the rate tion. Even if it is assumed that Beijing of economy growth). If this upward trend chooses to adopt this scenario, it would not continues, China surpassing the United be implemented straightforwardly. Still, States as the world’s biggest economy is such a scenario, in a certain specific situa- simply a matter of time. It is projected by tion, might well become a reality. the PRC leadership that the amount of Chi- Assumption that China’s ambitions nese exports would have increased to $5 will certainly grow further could be vali- trillion by 2020, with the proportion of dated by one evident aspect of U.S. foreign high-tech products rising to about 50% of policies. A broad consensus appears hav- the projected sum. In addition to this, the ing been reached among the expert com- PRC has huge strategic ambitions for tech- munity to the effect that a policy of nology and geopolitics, its technological containment of China is one of the funda- ambitions having grown to the extent that mentals of the United States’ foreign pol- they became the subject of concern by the icy, not simply part of it. Success or United States and Russia. If, a few years unsuccess of this American policy will de- ago, Moscow did not hesitate to sell Beijing termine the entire future architecture of the an amount of naval versions of the S-300 international relations system. RAND Cor- SAM system, today it faces uncertainty poration, an influential non-profit research about the feasibility of supplying the PRC organization in the United States, contends with Su-33 carrier-based fighters. Chinese that the PRC is the only country in the weapons designers have developed a no- world to be potentially capable to rival the torious reputation for successfully repro- U.S. in the amount and quality of available ducing even most sophisticated designs military resources and to present a virtually without gaining copyright permission. across-the-board high-tech challenge. China’s approach to dealing with RAND experts believe that within a decade problematic geopolitical issues appears to China would be able to supplant America as be interesting enough. Suffice it to have a the dominant military power in East Asia. look at PRC’s policies towards Pakistan. In In the meanwhile, a few recent years relations with Islamabad, Beijing appar- have seen pretty perceptible changes in ently took the ‘enemy of my enemy is my attitudes by some European countries to friend’ approach. By persistently reinforc- cooperation with the PRC, which might ing Pakistan, China weakens India and re- serve as an extra argument in favor of duces freedom of maneuver for New proposed Ukrainian-Chinese rapproche- Delhi. These ambitions by Beijing are what ment. Some European countries (even Kiev is looking at with much interest. On though the limitations on defense sup- the one hand, Ukraine still retains much to plies to China from the EU continue to be offer China with respect to technology. The effective) began systematic effort to ex- other side of that coin is that the possibility pand their respective arms export quotas is not fully ruled out that China’s territo- for the PRC, this being practiced not only rial ambitions and general geopolitical ex- by Paris but London and Berlin as well. pectations with regard to the Far East These quotas are fully legal since selected might spur Beijing to begin actively rein- weapons types are not covered by the forcing Ukraine as an anti-Russian center Chinese arms embargo.
  • 4.
    avtori:Layout 1 23.11.2009 4:38 Page 5 Ukraine-China: 4 from Project-to-Project Cooperation to Strategic Partnership Such a situation developing around Given that the signatory states to the China with its consistent and independent 1994 Budapest Memorandum (who as- policies, and, also, the rising challenges to sumed commitments as to Ukraine’s sov- Ukraine in whom China has a long-term ereignty and security assurances) tend to interest, all speak of the feasibility and ra- take less and less account of Ukraine’s in- tionale of proposed effort to ensure terests, this fact can and must become a Ukraine’s rapprochement with China in major reference point in Kiev’s talks with politics, technology and economy. Ukraine the United States. Moreover, Ukraine, currently needs assurances of a different under the umbrella of the Chinese might, type and a different format. If neither Rus- could try and alter it location on the sia nor the USA intend to assume that role, geostrategic map of the region (particularly it is essential that Kiev identify "a third through defense and dual-use technology party" who would be interested in a sus- transfers) and, simultaneously, build up an tainably developing Ukraine. Paradoxical indigenous missile shield powerful enough as it may seem, it is China who might po- to deter potential aggressor of any kind. As tentially act as a guarantor of this kind. For for China, who has in recent years begun China itself, in the presence of potential massive export of weapons and defense tensions in relations with the EU in case it equipment, not only does it visualize is pressurized by the United States, a Ukraine as a technology donor, but, also, strong Ukraine integrated into Europe as a potential large market for its defense might be of interest, indeed. There is an industry products, given that the PRC has opinion that China’s interest in Ukraine is already surpassed Ukraine in the develop- exclusively technological, but this is only ment and production of a whole range of true to a limited extent. Of course, Ukraine defense technologies. as a technology donor still retains much to It goes without saying that a concept offer China, most specifically in rocket and of a Ukrainian-Chinese rapprochement aerospace technology. Despite China’s needs to be thoroughly elaborated and ne- multi-year history of cooperation with the gotiated in detail with the Chinese party. Russian Federation, a significant aspect in Still, for Kiev, this idea looks far more potential cooperation between Ukraine preferable than apprehending an escala- and China in critical technology sectors tion of tensions in relations with the states might be that Ukraine and Russia would poised to ignore national interests of offer China technologies that are not com- Ukraine or disrespect their own security peting but, rather, complementing each assurances once provided to Ukraine in ex- other. It might be said with a high degree change for its nuclear-free status. of certainty that China’s interest in Ukraine In Chinese, the word ‘crisis’ is written is partly explained by the fact that Kiev in two characters meaning ‘danger/haz- never attaches any political strings or re- ards’ and ‘opportunity/chance/’. This quirements to joint projects in sensitive sec- combination could well and fully convey tors. Intuitively, Kiev’s forging close the content of military-political and mili- partnership relations wit Beijing in the mis- tary-technological friendship between Kiev sile technology area, i.e. missile warhead and Beijing for the sake of forging a new technology improvement, might cause prob- relevant strategy. lems in its relationships with Washington.
  • 5.
    chepter2:Layout 1 23.11.2009 0:57 Page 7 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 5 First chapter In search of comprehensive assurances T he period of 2008-09 proved to years from now. It could be predicted with be a difficult trial for Ukraine’s a very high degree of certainty that statehood. A systemic eco- Ukraine will not join NATO in the next 10 nomic crisis, coupled with a years. If key NATO players in Western Eu- crisis of security system, has rope, most notably Germany and France, become a stimulus for changing a geopo- continue with their current policies to- litical situation on the European continent. wards Ukraine (i.e. refuse to support A research conducted by the Center for Ukraine’s NATO membership bid), it risks Army, Conversion and Disarmament Stud- being left outside the Western Club and the ies (CACDS) revealed a number of adverse European Values System. tendencies that might threaten Ukraine. Second, the level of threats has For one thing, Ukraine has lost its changed to the extent that experts began value in the eyes of the NATO members talking about emerging risks to the Ukrain- who see in it a buffer strip between the Al- ian statehood itself. Ukraine, weakened liance and Russia. Key European NATO from within, has long seemed to be a ‘sit- players Germany and France have effec- ting duck’ for some countries. Tough- tively refused to back Ukraine's Euro-At- worded statements by the leaders of lantic bids, and there are grounds to claim Romania, Russia’s voiced territorial claims yet no such support for Ukraine on the part to some Ukrainian regions and open inter- of the United States. It’s not a stretch to say vention with Ukraine’s domestic affairs that European players of the North At- and, finally, surprise and unprecedented lantic Alliance have openly retreated in refusal by Moscow to acknowledge the ex- their fight for Ukraine, opting instead for istence of the Ukrainian nation are all di- maintaining smooth and even relation- rect consequences of a comprehensive ships with Russia. All-knowing media weakening and undermining of the sources have been talking everywhere Ukrainian State. The first losses of the about ‘Munich conspiracy-2’ plot. Rhetoric weakened state were quick to come -- the by the new American administration and de facto loss of Zmeiny Island and the the character of the current dialogue be- shaping of the image of the Ukrainian as an tween the United States and the Russian enemy to the Russian. Neighbors of Federation are all warning that Ukraine Ukraine have an interest in weakening its might be ousted to the periphery of Euro- political influence and defense capability. pean developments. In this new situation, Furthermore, the security assurances pro- Ukraine’s effort aimed at gaining for itself vided by Russia and the United States in a place among the European ‘club’ of na- 1994 in connection with Ukraine's acces- tions is not expected to pay off until many sion to the Treaty on the Non-Proliferation
  • 6.
    chepter2:Layout 1 23.11.2009 0:57 Page 8 Ukraine-China: 6 from Project-to-Project Cooperation to Strategic Partnership of Nuclear Weapons are ineffective now approach 2017 when the Russian Black Sea and will continue so in the future if the sce- Fleet is to be withdrawn from Ukraine. nario is unfavorable to Ukraine. This as- Third, the Ukrainian Armed Forces’ sumption might be clearly validated by the development level has fallen to the lowest "Tuzla" conflict [Russian attempt to join the point ever since independence. The Tuzla spit in the Sea of Azov to the Russian Ukrainian military is in the state of rapid mainland], the so called ‘gas wars’ with deterioration, with military morale declin- Russia and the threatening Russian rheto- ing and carrier officers, not excepting those ric itself, as well as the Russian-Georgian in the General’s rank, voluntarily retiring war conflict over South Ossetia. The 1994 by the legions. The military employs Budapest Memorandum on Security As- weapons arsenals and defense equipment surances in connection with Ukraine's ac- inventories that are almost one generation cession to the Treaty on the lagging behind those of the leading armed Non-Proliferation of Nuclear Weapons forces of the world in terms of state-of-the- provided security assurances for Ukraine art. Commentators are warning that in exchange for it laying down its nuclear Ukraine’s warfighting capacity is clearly arsenal and committing not to use or pos- not adequate to the current level of military sess strategic weapons carriers. Ukraine threats facing it. The CACS is placing on eventually handed over its arsenal of 1,734 record that defense capacity of the State nuclear warheads to Russia as demanded has been brought to total collapse. In all the by signatory states to the Budapest Memo- 18 years since independence, Ukraine has randum. Obviously enough, the never end- failed to build an effective battle worthy ing feud between political forces in army. Issues of the military and those of Ukraine has effectively brought the coun- homeland defense have not been ad- try to the brink of disaster where it may dressed as they should be; rather, they cease to exist as an independent statehood. have been fully and systematically ig- It’s not a stretch to say that, as we approach nored. Such an indifference to own armed the end of 2009, Ukraine has reached a bi- forces and their capacity to defend the furcation point where its further develop- country could be explained by the fact that ment may, with an equal degree of the military in Ukraine has always been left certainty, go down various tracks -- unidi- outside the scope of the system of issues rectional or opposing one another alike. over which political opponents can pres- Many experts are unanimous in their opin- surize each other. This system is unique to ion that all the prerequisites for a military Ukraine and comprises the Interior Min- intervention into internal affairs of Ukraine istry, the Prosecutor General’s Office, the are in place now. Beginning in 2003, there court system, the Security Service (SBU) has been a rapid growth in the level of and more organizations. The powers that purely military and military-political be in Ukraine cannot see why they should threats whereby the Ukrainian soil may be concerned about the military if it does turn into a theater of military action. This not bring them any dividends. A manifes- threat is becoming particularly imminent tation of such an attitude is that the Inte- as loud voices are being heard demanding rior Ministry’s budget for 2009, for the first that the issue of Ukraine’s nonaligned sta- time in a few recent years, has surpassed tus be brought back on the agenda. The de- that of the Ministry of Defense gree of this threat will steadily grow as we (UAH8.365bn as against UAH7.4bn).
  • 7.
    chepter2:Layout 1 23.11.2009 0:57 Page 9 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 7 Worse still, Ukraine’s Military Establish- this trend being observed during the fifth ment has lost much of its development in- consecutive year now. Some experts point ertia; even three to four years of massive to an increasing tendency of some coun- investment would not bring it up to the tries to be inclined to use military force for best developed armed forces in the region resolving tasks such as changing world in terms of combat effectiveness. In other order or redrawing the geostrategic map of words, it is highly unlikely that Ukraine the world. will be able to rely solely on its armed With this background in hand 18 forces any time soon when it comes to de- years past independence, Ukraine would fending its sovereignty and inviolability of be urgently advised to begin an active borders. search of alternative ways to ensure na- Fourth, vigorous activities by neigh- tional growth and secure vital interests of boring Russia at the diplomatic, economic, the State, not excepting those of homeland information and social levels, coupled with defense and national security. In this par- the absence of any coherent information ticular case, orientation to China’s military policies by Kiev towards Crimea have power seems to be well justified. brought high on the agenda the self-identi- China’s military accomplishments are fication issue of a substantial portion of the really impressive. During a military parade Ukrainian population in south and south- celebrating China’s 60th Anniversary na- east regions. Against the backdrop of the tional day on October 1, 2009, Beijing absence of a National Purpose, it could be demonstrated dozens of newest weapons placed on record that a substantial part of and military hardware types that have fun- the population are indifferent to whether damentally changed both the external look Ukraine is independent or not. Ukraine’s and the image of the People’s Liberation political establishment has been either in Army (PLA). Interesting enough, the Chi- the grip of an infantile misunderstanding nese military-political leadership claim that of the degree of the threats facing Ukraine the PLA now rivals armed forces of the or remains to be heavily intoxicated by Western World in terms of state-of-the-art. Russian propaganda. One way or another, This is a very serious claim that could be Ukrainian policy makers are clearly seen as an evidence of China’s global am- demonstrating incompetence. bitions. The PLA is the world’s biggest The above well explains why Ukraine armed force with 2.25mn active military has found itself in a ‘high-risk area’. The personnel plus a reserve force of 800,000, situation is aggravated further by global followed by the United States with its economic recession and deterioration of 1.4mn-member army. But what makes the ecological, demographic, energy-related PLA’s key accomplishment is the level of and ethical/moral problems of contempo- technology intensiveness that has risen rary humankind which all brought our civ- dramatically in the past decade. The PRC ilization into a ‘discussion stalemate’ and has consistently increased its defense are stimulating aggressive behavior. Ex- spending during many years now; in 2004, perts and analysts place on record that for example, China’s officially declared de- about 70 percent of all the countries across fense spending jumped to about $25 billion the globe have been increasing their de- from $22.37 billion in the previous years. fense budgets and spending on associated Some analysts, however, think that the in- re-equipment/re-weaponing programs, crease rate was 11.6 percent. Roughly the
  • 8.
    chepter2:Layout 1 23.11.2009 0:57 Page 10 Ukraine-China: 8 from Project-to-Project Cooperation to Strategic Partnership same growth rate has been observed in all its military, especially in the context of its the following years up to 2010. Some ex- space warfare capability enhancement. perts, though, believe that total spending Media reports had it that control of the might be as high as $40-45 billion annually satellite was initially carried out by PLA because the official budget doesn't include Navy’s satellite communication ships and funding for weapons programs that are one of its nuclear-powered submarines. normally set on a single line in the budget The results of the test had never been pub- plan. The amount of China’s military ex- licly announced, but, if it was a success, the penditure has always been a subject of se- Pentagon analysts say this could mean that rious concern for the Pentagon. In a 2007 the Chinese military will not have a long report, the Pentagon suggested that way to go to achieve a substantial progress China’s actual defense spending might in improving its ASAT capability. amount up to $139 billion, a significant in- Another area of priority attention for crease over the publicly announced figure. the PLA leaders is the development of its In March 2009, Beijing was planning to in- disruptive warfare capability. Disruptive crease its defense spending by 14.9%, up to warfare is a form of non-traditional, asym- $480.686 billion. In this context, a 2009 metric warfare that aims to undermine an statement by China’s leadership that its opponent’s strengths by exploiting weak- military arsenal is technologically roughly nesses. The Pentagon believes that China’s on a level with the world’s most advanced logical strategy is to favor asymmetric ca- armed forces looks highly symbolic. In an pabilities that target and exploit the weak- interview whose text is available on the nesses of China’s militarily superior Chinese Ministry of Defense website, De- opponents, especially the United States, in- fense Minister Liang Guanglie said that the creasing the potential that China can defeat PRC has achieved a great milestone in its them. Information warfare operations, es- military modernization endeavor. pecially cyber attack operations are attrac- Ukrainian experts must not lose sight tive to the Chinese military as an of an issue such as the Pentagon’s concerns asymmetric weapon in that it is much more over China’s anti-satellite and space war- effective than traditional weapons. PLA fare capabilities. U.S. analysts believe that, analysts believe that the Pentagon has an over the next few years, the PLA would excessive dependence on civilian computer have enough technological capabilities in networks and its NIPRNET unsecured net- hand to temporarily incapacitate or destroy work. It is believed that by attacking these American satellites in any potential Sino- networks the PLA would be able to disrupt U.S. military conflict. This concern, based US force deployments in Asia in a poten- on a thorough examination of the results of tial U.S.-Sino conflict over Taiwan. PLA China’s January 2007 anti-satellite (ASAT) commentators point out that by temporar- test, was voiced, especially, by Chairman ily incapacitating or destroying these com- of the Joint Chiefs of Staff Admiral Michael puter networks the PLA would disrupt Mullen. The Pentagon’s concerns are re- Taiwan’s capability to respond to a possi- lated to the launch of China's first lunar or- ble act of aggression by China and, also, biting satellite, Chang'e 1 in October 2007. would reduce the U.S. potentialities for a Analysts believe that this launch was of rapid intervention into a conflict should it paramount significance not only for the arise. Media reports on that subject had it Chinese scientific community but also for that a disruption of computer networks
  • 9.
    chepter2:Layout 1 23.11.2009 0:57 Page 11 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 9 supporting communications, financial sought to collect information (most partic- transactions and energy supply in Taiwan ularly relevant to economy and defense do- would cause a comprehensive panic, mains), secure own information networks thereby forcing Taiwanese authorities to and the decision-making community, and enter into talks with Mainland China. to uphold national unity. PLA’s printed publications consider infor- Of particular importance to Ukraine is mation warfare operations as a pre-emp- an aspect such as the Chinese experience tive weapon to prevent a conflict from with the development of medium- and escalating further. Here, one of priority ob- short-range missiles. Research and devel- jectives in information warfare capability opment on missiles in this category has development is protecting own computer been underway in China since the early networks from hacker attacks. The PLA 1980s. Three groups of missiles have been has in recent years begun setting up dedi- created to date, known by their export des- cated research organizations to experiment ignations M9, M11 and M18. Most widely with various information warfare scenar- fielded variant is the M9/DF-15 – a single- ios. Expert research programs in this do- stage solid-fuel missile that was exported main are well financed and an information to Libya (140 units), Syria (80), Pakistan, warfare research and development net- Iran and Egypt. The PLA Air Force and work is being expanded. Interestingly, the Navy additionally possess a combined ar- PLA does not have an official information senal of 1,500-2,500 cruise missiles. One warfare doctrine, neither does it have the more reason why this experience is of im- capability to implement such a doctrine portance to Ukraine is that the Ukrainian should it be there. Air Force has an inventory of Soviet-vin- American military experts believe tage tactical missiles. These missiles, whose that the information warfare concept cur- designers left in Russia after the demise of rently existing in China does not imply a the USSR, all need in-service support and war in its traditional, Western sense. It is maintenance by Russian engineers, and more targeted at non-military applications, Ukraine, on numerous occasions, could not in contrast to the West where military ap- reach understanding with the Russian side plication of information warfare technolo- on that issue. Moreover, these arsenals are gies is more traditional. This approach to antiquated by modern standards, and warfare offers China a possible solution to therefore need to be rejuvenated. Here, it the disparity between the capabilities of the must be pointed out that orientation to a PLA and U.S. forces, while not requiring single military-technological cooperation China to build a military fully equal to that partner has already had a detrimental ef- of the United States. The objectives of the fect on military modernization. Ukraine, in Chinese information warfare concept are 2005, set for itself a task of developing a projected into a far future, decades away multi-target missile system combining from now, unlike an equivalent concept in medium-range and short-range capabili- the United States which is aimed at accom- ties. Ukrainian designers, while having a plishing results ‘right there, right now’. history in the field of strategic missile sys- Many evidences have emerged now rein- tems, do not have any experience in the de- forcing the perception that China is cur- velopment of tactical/operational missile rently conducting a non-Western-type weapons. For this reason, relevant skills information warfare; China has recently and technology transfers with the PRC
  • 10.
    chepter2:Layout 1 23.11.2009 0:57 Page 12 Ukraine-China: 10 from Project-to-Project Cooperation to Strategic Partnership would be quite justifiable and feasible. In- technologies; cooperative research pro- tuitively enough, that issue must be ap- grams; licensed production/co-produc- proached with great caution, as some tion; own scientific-technical initiatives; problems may arise here, both in the con- expansion of indigenous production ca- text of limitations stemming from the in- pacities and modernization of the existing ternational Missile Technology Control defense-industrial base. Regime (MTCR) and at the level of rela- A characteristic of the current PLA tionships with the United States. By the transformation/modernization stage is the very fact of seeking such an opportunity in realization by the country’s military-polit- relations with the PRC, Kiev sends a mes- ical leadership of the fact that the prime sage to international community that role in ensuring national security is as- Ukraine deserves better attitude on behalf signed to the PLA. A number of military of the key players of global politics who operations at the start of the XXI century tend to take little if any account of brought to the fore the issue of a widening Ukraine’s vital interests. In recent years, a technological gap between the armed clear shift has become visible in the United forces of the Western World and those of States’ foreign policy, with more priority the rest of the world. This increasingly given to the development of anti-terrorist widening technological gap spurred the warfare capabilities. This has lead to alle- Chinese leadership to urge the PLA to seek viation of the U.S. foreign policy pressure achieving ‘technological leaps’ in order to on the PRC, and, simultaneously, opened expedite the development of new capabil- new vistas for China’s enhancing its global ities for increased maneuverability, fire- profile. This situation could be actively ex- power and precision of fire by way of ploited by the Ukrainian diplomacy in se- comprehensive informatization of the Chi- lecting ways to set up a platform for more nese armed forces. Chinese analysts also intensive, expanded Ukrainian-Sino coop- believe that the first two decades of the XXI eration. century would be a critical period in the It must be emphasized here in this transformation and building of new rela- context that by modernizing its military the tionships between the defense science/re- PRC is keen to max out scientific and tech- search community and arms industry in nological advances, creating a backlog of China. This experience should not escape knowledge for many years to come. Fur- the close examination of Ukraine’s mili- thermore, the PLA leadership is seeking to tary-political establishment, most particu- max out the effectiveness of new arms de- larly in the context of enhancement and velopments by integrating into them reinforcement of the Ukrainian Armed breakthrough upstream research achieve- Forces and orientation to capabilities of ments. In such a case, achieving full inde- own Military Establishment. pendence from foreign defense suppliers The PRC has for many years now remains a top-priority objective of the Chi- been developing cooperation in military nese defense industry development. The technology with the Russian Federation. current stage in the Chinese defense in- This seems to be no impediment to Ukrain- dustrial complex development is notable ian-Sino cooperation, which is evident by for an integrated employment of a whole a high enough level of this cooperation set of various measures, including acquisi- seen today. An important characteristic of tion of advanced foreign equipment and Ukrainian-Sino cooperation in critical tech-
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    chepter2:Layout 1 23.11.2009 0:57 Page 13 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 11 nology areas is that technologies offered development of bilateral cooperation be- China by Ukraine and Russia have differ- tween special services. ent applications and are, therefore, com- In forging cooperation with the PRC, plementing rather than competing with one must be mindful that China strongly each other. This perception is reinforced by opposes changing established rules of the a pretty high level of cooperation the PRC game or previous agreements. This atti- has maintained with Belarus, this being tude by China could be well observed from boosted further by highest-level contacts problems emerged in relations with between leaders of the two states. Ukrainian aircraft engine market ‘Motor- At the same time, Ukrainian foreign Sich’, over, as claimed by some observers, policy with respect to China has been no- pricing policy changes. A few years prior table for a lack of consistency. Even though to this, China cancelled its previously de- [Ukraine’s defense import/export author- clared intention to acquire a large amount ity] UkrSpetsExport and some major de- of Il-76 military-transport aircraft from fense suppliers, among them Motor-Sich Russian suppliers, again, because of [aeroengine maker] do have their respec- changes of previously agreed price tags. tive representative offices in China, no in- Also worthy of note is China’s tough atti- tensification of contacts has been observed tude to quality issues of imported defense at the top national level. Ex-president products. If we regard a few recent years Leonid Kuchma, for example, paid two of- of military-technical cooperation, here ficial visits to the PRC (one of them in a Ukraine has at least one negative example, two-leg tour that included a trip to Ulan which is evidence, among other things, of Bator). The sitting president, Viktor the loss of Soviet-era production quality Yushchenko has never included Beijing on standards. In China’s eyes, Ukraine, sad to his foreign tour schedules, and visits by say, still remains to be, to a certain degree, Foreign Minister Petro Poroshenko and a nonresponsive inconsistent partner. One Defense Minister Yuri Yekhanurov would example is that a well thought-out, once never have filled in the void in relation- proven noncash-payment scheme option ships with the key state dominating the did not work out again because the Ukrain- Southeast Asian region. Even so, we must ian government failed to set up a frame- not fail to take note that contacts have de- work allowing a defense exporter to barter veloped pretty well at the industry-to- its products for civilian goods. Not enough industry level. Also, expert appraisal of the clarity is provided with respect to privati- existing legal and regulatory framework zation issues, either. Here, Ukraine cannot for Ukrainian-Sino cooperation is favorable conduct a dialogue at an adequate level, enough. There has been active work by the while concrete questions about business- Ukrainian-Sino intergovernmental Mili- plans or international audit checks have, tary-Technical Cooperation Commission more times than not, been left unanswered. co-chaired by first deputy Minister of In- Furthermore, Ukraine does not seem to dustrial Policy of Ukraine. Earlier in 2009, have felt much urgency to push ahead with for the first time in many years, the Chief of a transparent privatization program for its the Ukrainian MoD’s Intelligence Direc- defense industry companies. On the other torate paid an official visit to Beijing, which hand, China will readily support projects was appreciated by the Chinese side as a targeted at third-country markets. Already constructive and useful step forward in the available positive experience here gives
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    chepter2:Layout 1 23.11.2009 0:57 Page 14 Ukraine-China: 12 from Project-to-Project Cooperation to Strategic Partnership reason to hope for an expansion and fur- inclined to take fast decision but, rather, ther advancement of this area of coopera- tend to thoroughly examine and weigh in tion. the balance all the options available before China has always been distinguished determining an acceptable response. Many for a well though-out, balanced foreign experts believe that China has already policy, and it therefore cannot be imagined launched a cautious advance on Russian that the PRC would sign any agreements interests, but Beijing is very unlikely to go providing security assurances to anybody. for direct confrontation with Moscow. The A thoroughly calculated, consistent foreign important positive side to Ukraine’s rap- policy course will stimulate China to be prochement with China is that it does not highly cautious in taking decisions. There affect or run counter to its rapprochement is certain to be no precipitation here. Still, with Russia. If Ukraine is to have a rap- interesting enough, China has a separate prochement with China, it has to evolve program facilitating cooperation with ex- into a consistent partner, unswervingly ad- Soviet states. This program provides for a hering to previously assumed obligations. range of mutually beneficial projects that Also, further advancement of Ukrainian in- could allow participating countries to en- terests in China calls for a high-level lob- hance their defense and technological po- bying and an intensification of bilateral tentialities. An important characteristic of contacts between the leaders of the two the Chinese leadership is that they are dis- states.
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    chepter2:Layout 1 23.11.2009 1:07 Page 17 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 13 Second chapter Place of Ukraine in the China-Ukraine-Russia triangle A s the defense market has de- The PRC, who has vigorously worked to veloped highly dynamically, bring defense production processes to a it gets pretty difficult some- commercial level and establish, in the times to draw a line between shortest possible timeframes, indigenous where mutually beneficial mass series production of previously im- cooperation ends and open competition ported weapons types and items of de- begins. fense equipment, has now been When analyzing in quantitative progressively transferring from the sta- terms the level of military-technological tus of defense importer to status of pow- cooperation between countries, it is nec- erful defense supplier. Here, a tendency essary to understand that volumes of de- could be observed where the Chinese fense contracts typically make no outpace original design developers in allowance for close international indus- putting reverse engineered designs into trial cooperation ties where subcon- production. Simultaneously, original de- tracted companies supply subsystems sign developers who transfer their most and assemblies, machinery, or assem- advanced technology to China would bly/repair kits, or replacement parts. have had little time left to produce new The topic of upgrading and repairs designs and offer them to the market. of numerous already operational The result is that the circle of technolo- weapons systems and items of military gies that China would be interested to equipment deserves a bit of its own at- obtain has been increasingly narrowing. tention. The establishment of large serv- As the situation is today, most se- ice centers in the Customer country is vere competition has been developing emerging as a new tendency observed along two most visible lines. First, this is among proven first line defense suppli- competition between Ukraine and Rus- ers. sia over the Chinese market, and second In addition to industrial offset pro- is competition within the Ukraine-Rus- grams, one of factors of no little signifi- sia-China triangle over third markets in cance is that defense customers are the Asian-Pacific Region, the Middle increasingly keen to get an access to cur- East and Africa as well as part of the rent-generation technology and, under- Iranian market. In the latter case, standably enough, to establish and Ukraine has not been engaged in compe- further develop their capacities for re- tition for political reasons. verse engineering and licensed produc- Due to the arms embargo imposed tion. The latter trend is most apparently on the PRC by the USA and major de- observed in cooperation with China. fense suppliers in Europe following the
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    chepter2:Layout 1 23.11.2009 1:07 Page 18 Ukraine-China: 14 from Project-to-Project Cooperation to Strategic Partnership 1989 Tainanmen Square massacre, Rus- their developments through from con- sia and Ukraine still have had the ability ception to construction is conducive to to sell out to China what has remained of growing competition on the engineering their scientific research potentials, re- service market. One more explanation dundant weapons arsenals and surplus might be that most of basic design-fo- military equipment inventories. In the cused upstream research was carried out eventuality that the arms embargo back in the 1970-80s, and as such the de- against the PRC is lifted, as has been velopments are almost finished intellec- openly pushed for by the EU countries, tual products that cannot be put to use Western designers could propose China under the conditions where there are a more advanced technologies than Russia lack of operating assets, limited amount or Ukraine can. On the other hand, how- and value of Government defense con- ever, it is the desire by the West to put a tracts, and inability to solicit invest- brake on the growth of China’s techno- ments, most particularly at the time of logical potential and military might that economic recession. has brought about the situation as it is On the other side of that coin, there now, as Western nations clearly visual- is a major slump in the quality of defense ize China as a potent competitor threat- production. In addition to a lack of ex- ening their defense industrial perience with independently doing de- dominance. sign and development, and a critical Almost complete dependence of degree of obsolescence and wear-and- Ukrainian and Russian defense indus- tear of manufacturing assets due to tries upon the export market has evolved staffing shortfalls, there has been a sharp into a common threatening tendency for drop in the culture of engineering, as both countries, this stemming from very well. A board of inquiry set up by the limited capacity of their respective do- Russian Government to investigate the mestic defense markets which cannot ab- cause of a series of test launch failures of sorb enough orders to provide domestic the submarine-launched intercontinental manufacturers with sustained business ballistic missile ‘Bulava’ could not iden- or large enough Government contracts. tify the cause of the failures for a long One of the reasons why Ukraine or time. At the initial stage of investigation, Russia cannot offer the defense market the finger was pointed to a subcontrac- any of their fundamentally new designs tor who allegedly supplied faulty ejec- is very tight budgets of their military tion cartridges used in the separation of R&D and defense procurement pro- the missile's stages. Eventually, it was grams. Further aggravating the situa- concluded that the most recent test tion, the break-up of sound defense launch failed because of a design and industry cooperation ties that existed be- construction fault of the first stage steer- tween Ukraine and Russia prior to the ing system. A fatal accident with the demise of the USSR has brought about a Russian nuclear attack submarine situation where it takes decades to de- “Nerpa’ which left 20 people dead in No- velop new designs and turn develop- vember last year could also be consid- ments into products. The lack of ability ered a consequence of an overall decline (stemming from a range of objective eco- in technical culture and a shortfall of nomic reasons) for the designers to see highly skilled workforce.
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    chepter2:Layout 1 23.11.2009 1:07 Page 19 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 15 In addition to this, there has been a ucated and trained at military universi- considerable upset in the quality control ties in Ukraine and Russia. In this con- system that previously was based on the text, it may be noted that the latter two institution of Military Acceptance. As have openly competed on the educa- was pointed out in a final statement of a tional service market over Chinese stu- conference on defense industry develop- dents. The 6,500 Chinese students (plus ment issues hosted by Russian NPO PLA trainees) constitute the single “Mashinostroyenie” (Scientific/Produc- largest foreign student contingent in tion Association “Mechanical Engineer- Ukraine (29.25pct of a 45,000-strong for- ing”), only one in ten defense companies eign student contingent). By comparison, in Russia have international ISO quality the Russian Federation has a population management certificates thus far, while of more than 25,000 Chinese students, in- in Ukraine, a volunteer qualification sys- cluding about 6,000 in Moscow and over tem for defense products has yet to take 4,000 in St-Petersburg. A considerable shape. proportion of the Chinese student popu- Low-level procurements of quality lation have been specializing in technical weapons systems and military equip- disciplines related to defense technology ment types result in fewer current-gen- among other things. A slant towards eration systems being made available for technical education is most apparently armed forces, thereby limiting their abil- visible among the Chinese student pop- ity to build up operational experiences ulation, which has not been observed with such systems. According to expert among student communities of other figures for 2009, latest generation sys- countries. The foreign student popula- tems account for a meager six percent of tion structure in terms of specialization the Russian Federation Armed Forces in- is usually divided among three roughly ventory. equal domains, with one third of stu- It is worth of note that the PRC has dents specializing in medicine, one third ascribed great importance to military in technology and engineering, and a specialist training, seeking to enhance combined one third in oil and gas, rural the overall educational level of the PLA economy, culture and other disciplines. military personnel, which still remains As Western medicine is not practiced in pretty low. A few teams of senior-rank- the PRC where the Traditional Chinese ing PLA officers have taken training Medicine dominates, medical students courses at reputed universities in from China are not to be found in Ukraine and Russia. Curiously enough, Ukraine or Russia, which explains why the Chinese trainees were less interested the proportion of students specializing in the training course content but more in technical disciplines is much higher in the training process in and of itself -- among the Chinese student population its philosophy, organization, approaches as compared to student communities and technique – apparently revealing from other countries. their intent to put into use the lessons Ongoing armed forces downsizing learnt in setting up massive military per- in Ukraine and Russia is conducive to sonnel education and training grid in closures and mergers of military univer- China. They made no secret of PLA’s in- sities, which has a highly adverse impact tent to have legions of its specialists ed- on the quality of military specialist edu-
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    chepter2:Layout 1 23.11.2009 1:07 Page 20 Ukraine-China: 16 from Project-to-Project Cooperation to Strategic Partnership cation and training there. Simultane- In pursuing their military-technical co- ously, there are occurrences where se- operation policies, countries have to comply lected Ukrainian scientists and scholars with current limitations relevant to so-called are invited to visit China to provide high ‘rogue’ states under a variety of international paying lecture courses on a variety of sanctions. While those limitations are duly critical subjects relating, among others, respected by most of defense suppliers, to theory and practice of aircraft carrier China has openly acted in defiance of sanc- building, which reveals China’s desire to tions of any kind. As traditional markets for obtain valuable knowledge by this way. defense supplies from Ukraine and Russia It could well be assumed that Russian had taken shape back in Soviet-era days, the scholars as well have been engaged to two countries took to competing over the teach courses in China, both in private once shared market space. capacity or under lecturer exchange pro- Holding huge financial resources in grams. hand, China confines itself to purchasing Financial support being provided small quantities, placing an emphasis on by China to selected renowned foreign acquiring production licenses, engineer- defense designers, and China’s engaging ing documentation and manuals with an them to assist in the design and devel- apparent goal of subsequently reproduc- opment of indigenous arms and military ing the defense designs obtained. By en- equipment designs has in its basis the as- gaging foreign developers to assist in piration to get access to new-generation R&D projects for indigenous defense de- technology and build up own experience signs, China pursues the objectives to get with independently doing R&D. This ob- comprehensive knowledge of current- viously suggests that the PRC has been generation technologies, obtain relevant deviating from reverse engineering as experiences and acquire intellectual key defense technology development property products without purchasing tool and, instead, progressively redirect- end products. Yet through it all, it must ing its effort towards the establishment be noted that it was cooperation with of scientific schools of its own. China that enabled survival of most of A factor of no little significance is that the defense companies that remained in China is geographically close to the Third place in Ukraine and Russia following World countries who previously were tra- the Soviet collapse. ditional customers for Soviet-supplied Either way, after acquiring sufficient weapons systems. Here, China has ex- scientific-technological potentialities to panded its political influence on those support its further technological develop- countries and supplied them with licensed ment, China is going to give up coopera- produced weapons types. Western Euro- tion with defense partners in Ukraine and pean countries and their traditional markets Russia once it becomes economically un- on the Euro-Asian continent have been ef- feasible. Future cooperation will only take fectively closed to defense suppliers from place with dynamically developing de- Russia or Ukraine. Interests of defense sup- signer companies capable of independ- pliers are usually focused on countries with ently producing innovative designs. It high GDP or excessive financial resources, must be noted for that matter that China whereas markets in underdeveloped coun- once proposed Ukraine establishing a tries usually remain to be neglected. range of industrial partnerships and setting
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    chepter2:Layout 1 23.11.2009 1:07 Page 21 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 17 up a research-and-technology park in accessible to it in Ukraine or Russia. This Ukraine, but those proposals have never would enable it to emerge as a most power- been materialized. Even though technol- ful competitor on third markets – powerful ogy parks, according to statistics data, ac- to the extent as to oust Ukrainian and Russ- count for no more than 13 percent of ian defense companies from their old tradi- innovative product output, they attract tional markets, with only few critical pinpoint investments in promising projects technologies remaining the exclusive due to access to low-soft lending programs province of Ukraine and Russia. and tax exemptions. Marked manifestation Basically, cooperation and growing of inertia being observed there arises from competition between the three countries considerable juridical difficulties involved could be observed on markets for the fol- in official registration of technology parks lowing: which require legislative amendments to •Satellite launch services and be established. Regarding defense compa- co-development of satellite navigation nies in Ukraine and Russia, cooperation systems; with China almost always takes place in •Aeronautical technologies; cases involving most easily producible de- •Land warfare equipment; fense designs created 20 to 25 years ago. In •Naval ships and related such a case, the shortest possible time limit weapons and systems; required for China to reproduce a selected •Air defense systems. design has been reduced to two years. In In addition, separate consideration the opinion of a number of Ukrainian de- should be given to: fense industry sources (general designers •Rocket and missile technolo- at premier defense companies), the end of gies; the active phase of cooperation with China •Control and communication might be expected in five to seven years systems, electronic intercept radio intel- from now, enough for the PRC to launch ligence systems, electronic warfare indigenous production of reverse engi- equipment; neered designs and oust Ukrainian and •Joint R&D activities; Russian defense companies from their tra- •Educational services (military ditional markets. Truth be told, this does specialist training) not apply (at least at this point in time) to the AFV and aircraft engine domains. On the other hand, the PRC, by most Problems involved in conservative estimate, procured from $1.8 safeguarding intellectual to 2.0 billion worth of weapons and de- property rights fense equipment in each of the recent 15 Some interesting relationships, both years when it achieved a considerable mil- in legal and moral terms, have arisen be- itary-technological quality leap. After- tween individual companies in Ukraine, wards, the amount of foreign defense Russia and China as well as at the trina- procurements was willfully reduced to the tional level over intellectual-property minimum. rights to technologies involved in some or By expert estimates, China will, in the other military design. foreseeable future, be able to establish pro- At the panel session on “Problems in- duction of most of the defense technologies volved in safeguarding intellectual prop-
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    chepter2:Layout 1 23.11.2009 1:07 Page 22 Ukraine-China: 18 from Project-to-Project Cooperation to Strategic Partnership erty rights relating to defense-industrial co- Ukrainian Minister of Industrial Policy, operation between the Russian Federation V.Novicki. Even though Ukraine and Rus- and foreign states” that took place in Janu- sia had previously jointly carried out a sim- ary 2008 as part of the Infoforum-10 on ilar contract to supply four same-class “Safeguarding intellectual property rights ‘Zubr’ air cushion landing vehicles to the and the exploitation of the results of intel- Hellenic Navy, neither of the two has the lectual property”, hosted by Moscow’s Sci- capability to build vehicles of this type sin- entific Research Institute of Intellectual gle-handedly. Ukraine’s workshare in Property, it was pointed out in a report building vehicles of this type is estimated presented by E.A.Livadny that the China by analysts at no less than 40 percent, plus North Industries Corporation (NORINCO) a major part of warranty and post-war- was manufacturing without proper license ranty servicing provided by Research and some individual small arms weapons types Manufacturing Gas Turbine Corporation derived from the Kalashnikov AK-47 as- Zoria-Mashproekt. Competition over the sault rifle: Type 97, Type CQ, Type 56 Hellenic Navy’s contract was fierce; it even (copy of the AK-47), Type 68, Type 81, continued when work on the contract was Type WQ 314 and Type WQ 314A. The already in progress, which resulted in a re- same report said that China has established vision of the terms of the deal. The result production of reverse engineered copies of was that the value of the $200mn contract some of Russian-designed weapons sys- previously equally shared between the tems, among them the AO-80K air defense Ukrainian and Russian contractors was re- gun, the laser-guided 155mm projectile distributed in the latter’s favor by a factor ‘Krasnopol’ and the ‘Fregat M2EM’ naval of 1 to 3. The situation was eventually re- radar, as well as the naval radar ‘Mineral- solved to satisfaction of Ukraine who was ME’ designed by what is now the State En- awarded a compensating contract to sup- terprise ‘Scientific-Research Institute of ply a TP-400-type ship transporter plat- Radar Equipment ‘Kvant-Radiolocation’ form built at Sevmorzavod Shipbuilding based in Kiev. Yard in Sevastopol. The value of the ‘Zubr’ Ukrainian designers are speaking of contract with China may amount to numerous facts where equipment once $315mn, provided that the supply package supplied to China had, while under war- includes the complete set of engineering ranty, been subject to unauthorized open- documentation and manuals as demanded ing with the aim of studying the structure by the Customer. It was reported by vari- and construction of, and subsequently re- ous media sources that Russia was negoti- producing its constituent subsystems. ating the transfer of production license for However, no official complaints have ever the Zubr to China in 2007, in a package in- been made out of fear of losing well-pay- cluding the supply of 10 to 15 such vehicles ing customers. to be built at Russian shipyards. At various Most illustrative in terms of copyright stages of the negotiating process, the protection might be the two examples as amount of the supply varied from four ve- described below. hicles (for $215mn) to six and ten vehicles, First is about the contract from China but the negotiating parties had never ar- to supply four Type 1232.2 ‘Zubr’ small rived to any compromised agreement. The landing craft air cushion vehicles, whose Russian company Central Maritime Design signing was announced in May 2009 by the and Development Bureau ‘Almaz’ based in
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    chepter2:Layout 1 23.11.2009 1:07 Page 23 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 19 St.-Petersburg has stated that the Ukrain- Exactly the converse situation in ian party violates its intellectual property terms of safeguarding intellectual property rights by transferring (or selling) engineer- rights is being observed with Ukraine’s top ing documentation and manuals for the designer of naval radar systems, the Kiev- ‘Zubr’ small landing craft air cushion vehi- based Scientific Research Institute of Radar cle to a third party without the Designer’s Equipment ‘Kvant-Radiolocation’. Its port- authorization. UkrSpetsExport, Ukraine’s folio of highly successful Soviet-era de- defense import/export authority, does rec- signs includes a range of 2D and 3D naval ognize that copyright to the ‘Zubr’ design radar systems, among them the ‘Pozitiv’, belongs to Almaz. Simultaneously, it the passive radar system ‘Mineral’, the tar- points out that air cushion vehicles of this get designating radar system ‘Uspekh’ and design have been built by Ukrainian ship- the ‘Mars-Passat’ (the Soviet alternative to building yard FSK ‘Morye’ on the strength the US-designed integrated naval weapons of bilateral agreement on intellectual prop- system AEGIS). Not only Kvant-Radiolo- erty rights to ex-Soviet military designs, cation is designer of naval radar equip- which allows the signatory parties to em- ment, but it also employs a manufacturing ploy design concepts, engineering docu- plant in Kiev to series-produce own de- mentation and manuals available to them. signs. It requires that any kind of activities in- Kvant-Radiolocation is currently as- volving the use of copyrighted designs or sisting its Russian counterparts in pre-pro- safeguarding intellectual property rights duction works at a newly-built factory should be performed in agreement be- where it was planned to be relocated at the tween the signatory parties, but says noth- time before the USSR fell apart. Russian ing about the intellectual property rights manufacturers of Kvant-Radiolocation’s emerged in between the collapse of the So- designs are telling potential customers that viet Union and the day when the agree- what they offer them are all their own de- ment took effect a couple of years ago. signs that they sell with a minimum modi- Therefore, the companies — fully com- fication. They don’t even bother to prehending that in absence of contracts for re-designate the ‘adopted’ designs, except the building of vessels of this unique design for changing the last few symbols in the they would lose the capability to build them original designation name. In this particu- or would cease to exist altogether -- are keen lar case, Kvant-Radiolocation has a strong to take advantage of the last opportunity to interest in already existing cooperation ties improve their situation through the Chinese to be maintained and developed further; it order. It is obvious to all that exports of has opted to forget ‘past endeavors’ and Russian- or Ukrainian-built Zubr-type ACVs concentrate its effort on new developments would reduce to near zero once China gets rather than to compromise relationships hold of the documents required for produc- with Russian partners. tion of the hovercraft of this design to be Kvant-Radiolocation is currently a launched at its own yards. As the situation at successful supplier of radar equipment to the Ukrainian shipbuilder FSK ‘Morye’ is far China. It is now completing design and de- worse than that at Almaz, the former would velopment of a command and control com- agree to cooperate with China on much less puter system (C2CS, an equivalent of beneficial terms and conditions, which in- AEGIS-class integrated command/man- deed is what would suit the book of China. agement information system) for PLA
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    chepter2:Layout 1 23.11.2009 1:07 Page 24 Ukraine-China: 20 from Project-to-Project Cooperation to Strategic Partnership Navy’s new Type-956 destroyers and, pos- Soviet-supplied weapons types, among sibly, future aircraft carriers. In addition to them the P-15 cruise missile. But test flights this, Kvant-Radiolocation supplies a con- of P-15 clones have all failed, as Chinese siderable portion of radar and optoelec- engineers did not know even the first word tronic systems for naval ships being built about rocket building. Ironically, now an- for the PLA Navy in Russia. In so doing, tiquated concept of closed architecture (as the Ukrainian company does not raise opposed to newer open-architecture con- claim either to Russia or China. To make an cept) is more effective in terms of copyright estimate of Kvant-Radiolocation’s contri- protection in that it does not allow poten- bution, suffice it to have a look at the com- tial users to see inside or reproduce all or position of the electronic countermeasure parts of a specific weapons design archi- equipment package on the PLA Navy’s tecture. Even though the Ukrainian com- Type-965E and Type-956ME destroyers pany is involved in the design and that were supplied as wholly Russian-de- development of almost the complete set of signed without any mention made what- sonar system types (underkeel, towed, soever of the Ukrainian contribution. In add-on, helicopter-deployed), its products addition to electronic warfare equipment, still remain an unknown quantity on most the propulsion-machinery plant on the de- of potential markets. Nonetheless, Ukrain- stroyers was designed in Ukraine’s Zapor- ian companies enjoy pre-eminence in the izhzhia, as well. It might be noted for that global market for airborne anti-submarine matter that the PRC has already launched radio sonobuoys, with the Russian Federa- the effort to design and develop indige- tion and some NATO countries being nous copies of some Russian-supplied de- among major customers. Radio sonobuoys stroyer types, whereas Russia has yet to of the RGB series (RGB- launch the development phase of a new de- 15/16/17/25/55/75) had been series man- stroyer design where a premium is being ufactured at a factory in Kiev and, apparently placed on innovative naval previously, in Nova Kakhovka. Kiev’s weapons designs developed with revenues Radio Equipment Factory supplies ‘Os- from the Indian Navy’s contracts. Ukraine minog’ (Octopus)-series target search and and Russia both want to tap into the prom- track radar systems for integration with the ising market for stealth corvettes, and in- K-28 helicopters exported by Russia to tend to begin design and development of China (to date, seven units of the ‘Os- future frigates of indigenous designs. In minog’ radar system have been supplied). the marketplaces for corvettes and frigates, In this particular case, not only do Ukrain- China has successfully promoted its earlier ian companies provide support for Russian designs on Asian-Pacific markets. defense export contracts with the PRC, but, In the case of hydroacoustic equip- to a certain degree, maintain a stranglehold ment, similar situation could be observed. on some niche markets. Here, however, Ukrainian company Kiev’s At the time when Ukrainian and Scientific Research Institute of Sonar Russian economies were in deep collapse Equipment is in a worse standing, being in the first few years immediately follow- overshadowed by its Russian counterpart ing the disintegration of the USSR, neither and not having a large enough portfolio of of the two could afford further maintain- torpedo systems products. China previ- ing naval vessels of that big displacement ously was making attempts to reproduce and, simultaneously, both were in desper-
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    chepter2:Layout 1 23.11.2009 1:07 Page 25 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 21 ate need of cash. As a result, China had ob- panies believe that visits by Chinese dele- tained a few large naval ships that once gations on some occasions are not aimed at epitomized the heyday of the Soviet naval forging a deal but, in actual fact, are mani- shipbuilding school of thought, at a price festations of industrial espionage aimed at even cheaper than that of ferrous scrap of collecting information about new technol- an equivalent weight. In such a case, Russ- ogy and directions of future developments. ian military officials managed to transfer Of course, some manifestations of open es- even some top-secret assembly units to pionage (which is punishable by law) do China. The Type 11436 aircraft carrying take place, as well. On July 28, 2009, Russ- cruiser ‘Variag’ was towed to Dalyan Ship- ian Customs officers at Zabaikalsk- yard from the Black Sea Shipbuilding Yard Manchuria international automobile in Mykolayiv when it was 67% ready in checkpoint detained an exiting Chinese cit- 2002. Here, the PRC, while trying to see in- izen attempting to smuggle fighter aircraft side the obtained military equipment de- power supply equipment that was dis- signs, has been simultaneously making guised as pressure devices hidden in the attempts to establish indigenous military luggage boot of his vehicle. Intellectual design schools of thought and engineer in- property protection issues are closely in- novative construction materials without ar- terrelated with keeping commercial and bitrarily copying the technology solutions Government secrets, most notably in cases acquired. This point could be underscored where potentialities for future cooperation by China’s development of indigenous tor- and the status of modern designs make the pedo weapons system series derived from transfer of new (but not newest) technolo- American, Italian and ex-Soviet counter- gies quite feasible. Intellectual property parts. The Chinese have built an indige- protection issues involved with military- nous current-generation torpedo system technological cooperation programs of the and, on a parallel track, developed a few Russian Federation, Ukraine and the PRC innovative construction materials, i.e. for do exist for the copyright holders who can- the torpedo’s fore section, a design whose not develop themselves further or offer engineers have been awarded a state prize manufacture-ready innovative design so- by the PRC Government. lutions. No matter whether an appropriate Ukrainian and Russian naval design- contractual basis is in place or not, any ers have complemented each other on a kind of a weapons system or an item of number of niche markets, which has impli- defense equipment obtained from a for- cations for their respective intellectual eign supplier may, to some or other de- property rights. Conflicts do arise in situa- gree, potentially provide a basic design tions where copyright holders begin ‘tilt- around which to build an indigenous de- ing at windmills’ when they realize that rivative. For this reason, weapons types they have nothing new to offer the market. designed for the export market should The nature of copyright abuses lies in not contain newest-generation designs differences between free-market Western but, rather, those of the latest but one gen- ideology and socialist ideology. Remaining eration. As is lamentably often the case, fully socialist, the PRC, as did the USSR in some Ukrainian defense designers, left its own time, has openly abused intellec- without Government support, would not tual property laws in the hunt for new stop short of selling out their most latest, technology. Officials at some defense com- if not last designs.
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    chepter2:Layout 1 23.11.2009 1:07 Page 26 Ukraine-China: 22 from Project-to-Project Cooperation to Strategic Partnership Competition on the space Russian partners provided the software component. Therefore, in this particular services market case, Ukrainian and Russian companies are Russia and the PRC both have the complementing one another. possession of a great deal of modern-gen- CJSC ‘Cosmotras’, a joint partnership eration ballistic missiles, while Ukraine between Ukraine, Russia and Kazakhstan, boasts of having a very rich experience has been converting the RS-20 (NATO re- with designing, developing and manufac- porting name SS-18 ‘Satan’) ICBM into the turing them. However, cooperation in the ‘Dnepr’ SLV for Russia, and it employs the ballistic missile area — because of national converted rocket for launching small satel- security considerations and the limitations lites from the Baikonur Cosmodrome in assumed by countries in connection with Kazakhstan and a launch site of the Russ- their international obligations relating to ian Strategic Missile Forces’ Yasnensk Mis- nonproliferation of missile technologies – sile Division in Orenburg Region. is restricted to the development of new ma- On August 31, 2009, Chinese launch terials. Simultaneously, there is a fierce vehicle CZ-3B partially failed during the competition observed on the space launch launch due to a third stage malfunction market where each and all members of the which resulted in Indonesian communica- space-faring club have been engaged. A tions satellite Palapa-D1 reaching a lower most distinguishable characteristic of the than planned orbit. This was the first inci- space services market is reluctance by any dent involving Chinese space launch vehi- of the market players to share critical tech- cles in 13 years since August 1996. To date, nologies with competitors. the PRC has carried out 77 successful space Even though the PRC has been build- launches, revealing its aspiration to seize ing indigenous space launch vehicles and part of the space launch market. has launched a human spaceflight itself, it In late June 2009, international consor- is still lagging in this domain far behind tium Sea Launch that comprises Ukrainian other countries, including Russia and participants ‘Yuzhnoye’ Design Bureau and Ukraine. NPO ‘Yuzhmash’ (a leading provider of Russia and Ukraine both have opted launch services to the commercial satellite the way of converting intercontinental bal- industry) filed voluntary petitions to reor- listic missiles into commercial space launch ganize under Chapter 11 of the United States vehicles (SLVs). The SLV ‘Rokot’, for ex- Bankruptcy Code in the United States Bank- ample, has been built by way of converting ruptcy Court for the District of Delaware. the PS-18 (NATO reporting name SS-19 Usually well-informed sources believe that ‘Stiletto’) ICBM. Rokot employs the the main reason why Sea Launch has slowed Stiletto’s boost cluster as the first and sec- down the rate of its operations recently is in- ond stages, while the upper stage is the ability by Russian company NPO ‘Energo- newly-developed ‘Briz-KM’. Ukrainian mash’ to supply Yuzhmash with sufficient company OJSC ‘Khartron’ based in numbers of sustainer engines for Zenith-3SL Kharkiv is the designer, maker and sup- rockets employed for Sea Launch opera- plier of control systems both for the SS-19 tions. They are claiming that Energomash is Stiletto ICBM and the Rokot SLV. Control now more focused on cooperation with system hardware for the ‘Briz-KM’ upper Lockheed Martin, supplying it with sus- stage was developed by Khartron, while tainer engines for its ‘Atlas’ SLVs.
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    chepter2:Layout 1 23.11.2009 1:07 Page 27 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 23 A project is now nearing completion The PRC is apparently experiencing in Ukraine to build a prototype of a funda- difficulties in building its indigenous satel- mentally new SLV design to be known as lite navigation and positioning system Bei- Cyclone-4. Being designated as the dou (‘Northern Dipper’ or ‘Ursa Major’). youngest member of the Cyclone family, Incidentally, the Russian-Chinese joint- the Cyclone-4 will, in actual fact, have little venture partnership Ural & Hangsheng if anything in common with its older sib- Autoelectronics Co. Ltd., anticipating al- lings. The Cyclone-4 has been scheduled to most simultaneous arrival of China’s Bei- be ready to carry out its maiden launch dou and Russia’s GLONASS satellite from the Alcantara Space Center (Centro navigation systems to the market, has al- de Lançamento de Alcântara) in Brazil in ready launched the design and develop- late 2010 or early 2011. ment of a receiver combining Beidou and It might be noted that, according to GLONASS reception. Ukraine enjoys ex- expert estimates, space launch services ac- perience with developing satellite naviga- count for only about 5% of the overall tion systems, along with the USA value of the space services market. Here, (NAVSTAR) and Russia (GLONASS). Rus- most of the market in value terms is ac- sia has maintained its GLONASS satellite counted for by services for the design, de- constellation as an alternative to the United velopment and construction of spacecraft States’ GPS satellite navigation and posi- and relating systems. This market is domi- tioning system. However, development of nated by the U.S., Great Britain, France and the GLONASS project’s commercial com- the Russian Federation. As far as Ukraine is ponent has been hampered by the lack of a concerned, it has successful experiences cost effective receiver solution. Here, with building Earth monitoring satellites Ukrainian company Orizon-Navigation but still does not have even a single com- based in Smila, Cherkasy Region, has munication satellite of its own. Ukraine’s closely and actively cooperated with its first ever communication satellite will be Russian counterparts, doing processor lay- designed, developed and built in Canada. out generation works. But Orizon-Naviga- Separately, it may be noted that tion, as is the case with its Russian Ukrainian companies have provided de- partners, does not have the possession of signer’s technical supervision and in-ser- current-generation production technology vice support and maintenance for the for its microelectronic circuits, and there- intercontinental ballistic missiles remain- fore cannot compete with more technolog- ing on stand-by duty in Russia. In such a ically advanced suppliers. Cooperation by case, Moscow is apparently reluctant to tap Ukrainian companies with European part- Ukrainian rocket builders for own ICBM- ners in the planned ‘Galileo’ satellite navi- focused programs, while being obviously gation and positioning system of the incapable of developing and building mis- European Union should not be considered sile systems on its own. Russian designers as a manifestation of direct competition will certainly eventually succeed in creat- with Russian companies, even though Rus- ing a current-generation ICBM design some sia does not have an interest in more navi- time in the future, but by engaging Ukrain- gation systems to be deployed on orbit ian partners to assist in that effort they along with its GLONASS constellation. In would achieve this goal more sooner and in this sense, China has launched a challenge a more efficient yet less expensive way. against space-faring nations by announc-
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    chepter2:Layout 1 23.11.2009 1:07 Page 28 Ukraine-China: 24 from Project-to-Project Cooperation to Strategic Partnership ing plans to deploy an indigenous satellite only considered here as weapons plat- navigation system, the ‘Beidou’. In its cur- forms. In the Russia-Ukraine-China trian- rent configuration, however, the Beidou gle, the unrivaled leader in the field of has limited application and a coverage lim- missile weapons is the Russian Federation. ited to the territory of China itself. In re- Any of the world designers have never sponse to this move by China, Japan has managed to develop anything comparable declared intention to set up own satellite in operational efficiency to the missile sys- navigation system, but there has been no tem types created in Russia back in Soviet- reports to date of Tokyo making any prac- era days. The USSR, reciprocally, had tical implementation measures to this end. successfully reproduced U.S.-designed It may be noted in this context that anti-ship missiles Tomahawk and Har- Russian spacecraft are far inferior to Amer- poon, under designator names ‘Granat’ ican counterparts in operational capabili- and Kh-35, respectively. In the anti-ship ties and lifetime (in sum their quality), and missile domain, China only has two in- next-generation Russian satellites are not digenous designs, the C-801 and C-802 (the expected to equal currently operational latter featuring an air breathing engine), U.S. satellites in performance capabilities both of which are much inferior to U.S. and until 2014-2016. Russian equivalents in operational capa- So, the above indicates that Ukraine bilities. At the same time, the PRC has long and Russia are cooperating with and com- caught up with Russia in the fields such as plementing each other on the missile and artillery and multiple-launch rocket sys- space services markets, and, to a limited tems. Even though they may not be as ca- degree, are competing with one another on pable as Russian or Western-designed the space launch market where the PRC is alternatives, still their indisputable com- emerging as a viable competitor to Ukraine petitive advantage is much lower cost than and Russia that of rival equivalents. Given that con- ventional artillery systems had reached the limit of their technological development Competition on the rocket and back at the WWII time (with only fire con- artillery markets trol system being improved in postwar A common competitive disadvantage years), China has, in actual fact, developed of Ukrainian and Chinese defense indus- a last century’s generation technology. In tries (specifically Ukraine’s naval ship- the development of future-generation ar- building industry) is the lack of advanced tillery weapons such as electromagnetic shipboard missile system designs. Naval guns or liquid projectile weapons, the level ships are cheaper to build in China than in of competition is difficult to evaluate, as Ukraine or Russia. Asian-Pacific countries the developments are kept in secret and an would build supersize vessels within a operational prototype is not to be built in shorter timeframe and, often, with a higher the U.S. until 2025. A quite similar situation quality. Moreover, at the time of economic could be observed in the domain of laser recession, they openly resort to price weapon systems where the Russian Feder- dumping practices by reducing prices by ation is the only country to have demon- 18-20 percent to get an extra edge over strated successful developments. their European rivals. Naval ships, combat The PRC has successfully marketed aircraft and armored fighting vehicles are indigenously-designed highly capable
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    chepter2:Layout 1 23.11.2009 1:07 Page 29 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 25 multiple rocket launchers, while Ukraine vated by its desire to get access to unique has recently demonstrated an indigenous supersonic ramjet anti-ship missile equivalent whereby an emphasis is obvi- ‘Moskit’. Russian non-nuclear submarine ously placed on operational comfort for the designs, as well, include integrated anti- launcher crew. sub/ship cruise missile systems of the A rare manifestation of competition on ‘Klub’ series. Previously, when the USA the rocket and artillery market was Russia’s was showing interest in purchasing a ship- transfer of production license for the ment of Russian anti-ship cruise missiles ‘Krasnopol-M’ weapon to the PRC, in a pack- ‘Moskit’ (NATO reporting name SS-N-22 age with 1,000 precision-guided rounds of ‘Sunburn’) in a package with a few attack this type. This means to say that more capable craft as carrier platforms, the Russian de- Ukrainian equivalent ‘Kvitnyk’ (designed by signer of the missile, in an article published Nizhyn’s Central Design and Development in ‘Komsomolskaya Pravda’, protested the Bureau ‘Tochnist’) will never be able to make planned deal, saying that the USA, with its it to the Chinese market. Furthermore, ex- virtually unlimited financial resources and pected mass production of precision weapons technological potentialities, would be able in this category at Chinese factories might to use the design as a basis for building an threaten Ukrainian and Russian suppliers on indigenous equivalent capable of mid- third-country markets. course speeds of up to 4.5 km/s. The The PRC has already advanced ahead planned deal was scrapped after the of Ukraine in some weapons technology protest. The ‘Moskit’, simple as it may im- areas where Ukraine was previously a tech- mediately seem, is, in actual fact, a highly nology donor. Now Ukraine itself is inter- sophisticated design which China will not ested in reverse transfer of some Chinese be able to replicate or begin to mass pro- technology required for building an indige- duce in the foreseeable future. On the other nous tactical/operational missile system de- hand, the PRC has already obtained pro- sign based on advanced and cost effective duction licenses for the Kh-35/AS-20 materials and electronic assembly units. The ‘Kayak’ and Kh-31A/AS-17 ‘Krypton’ anti- PRC has also advanced far ahead recently in ship missiles. robotic engineering and UAV development. In the field of submarine design and It will therefore be easily understood construction, Ukraine is no competitor to that, in the rocket and artillery market, Russia, as it does not have indigenous de- Ukraine is interested in Chinese and Russ- signs in this domain, neither does its Navy ian technologies, which would undermine have a substantial enough requirement for its own position as arms supplier on the one submarines (it is estimated at 3-9 sub- hand, but would simultaneously open new marines at most). As for China, it has vig- vistas for international collaboration on the orously worked to develop reverse other hand. engineered copies of the Type 877 Var- shavyanka-class non-nuclear submarine and its more recently designed versions, Competition on the and even has launched the building of naval market atomic submarines. After taking delivery China’s selection of Russia as the sup- of the Varshavyanka in 2002, the Chinese plier of a few expensive destroyers for the built a replica of the submarine’s hull in PLA Navy was, to a large degree, moti- 2004 and, probably, ‘stuffed’ it with
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    chepter2:Layout 1 23.11.2009 1:07 Page 30 Ukraine-China: 26 from Project-to-Project Cooperation to Strategic Partnership weapons whose types could not be viewed and again express an interest in a ship of on overhead images in sufficient resolu- that class. For China, however, acquiring tion. It could be well assumed that it won’t that type of a ship would be highly prob- be long before the PRC would be able to lematic, given that the cruiser’s weapons copy and build the sub’s key systems, as complement includes 16 anti-ship cruise well. Considering the progress made by missiles capable of ranges in excess of 500 the PRC in microelectronics, radiolocation kilometers – a prospect that would cer- and hydroacoustics, Beijing may soon tainly raise protests from the U.S., Taiwan begin supplying naval vessels in all cate- and Japan. Russia, despite its rapidly gories (with efficient enough naval growing geopolitical ambitions, is afraid to weapons packages) to third-country mar- assume extra financial burdens for the kets where it is going to face a competition completion and subsequent operation and from Russia. The PRC has recently deliv- maintenance of that large ship. With regret, ered the first-of-class F-22P frigate to the we point out here that the suggestions Pakistan Navy, under a four-vessel being voiced for the unfinished cruiser to $750mn contract awarded in 2004. Naval be employed as a seaborne anti-ballistic electronic equipment on the first F-22P missile launch platform are almost as real- frigate is almost entirely made in China. istic as creating a human settlement on Previously, the PRC was supplying naval Mars. ships to Thailand and Algeria. In the field of ship repairs, Ukraine In the field of naval weapons, Ukraine enjoys some advantages over Russia, in could cooperate both with the PRC and the that Ukraine supplies propulsion systems Russian Federation. However, cooperation for most of ex-Soviet naval ship designs, here might not be of a large scale, as the and, furthermore, the cost of ship repair PRC and Russia both have excessive ship- services is cheaper in Ukraine. The PRC building capacities. Ukraine has huge po- has seriously considered having its Type tentialities and experiences with naval ship 956 destroyers repaired at Ukrainian yards. developments. Even so, cooperation with As well as ship repairs, Ukraine has an Russia or the PRC here is hardly possible, edge over Russia in the naval ship upgrad- given that the former can do well on its ing market, as well, most particularly with own without anybody’s help, while the lat- respect to gas-turbine engines which Rus- ter, even though it does have a requirement sia does not manufacture thus far (naval for naval ship designs, would prefer ob- gas-turbine manufacturing facilities being taining them ‘for free’. Furthermore, it is under construction in Russia will not be most unlikely that any of the two super- able to offer competitive products during powers would openly recognize the need the mid-term period). to have Ukrainian design companies en- Research and Manufacturing Gas gaged in their respective naval shipbuild- Turbine Corporation Zoria-Mashproekt, ing programs. earlier in 2009, was awarded a Chinese One more area of common interest for contract to supply four naval gas-turbine the three countries could be the completion engines worth $55mn, in addition to three of the Type 1164 Missile Cruiser ‘Ukrayina’ large-scale orders from the Russian Navy. that is currently staying unfinished at the It is worth of note that Ukrainian ship 61 Kommunara Shipbuilding Yard in repair yards in Sevastopol (which have Mykolayiv. Both Russia and the PRC ever currently been employed as leased prop-
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    chepter2:Layout 1 23.11.2009 1:07 Page 31 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 27 erty by the Russian Black Sea Fleet, under defense modernization and improvement a lease agreement expiring in 2017) are op- programs are restricted to a limited up- erating at 100pct of capacity and provided grade of technically obsolescent and worn- with sustained business through the lease out short range mobile SAM systems period. As a result of ongoing fight for OSA/SA-8 ‘Gecko’ and, more rcently de- property rights in Ukraine, a number of signed, self-propelled medium-range SAM ship repair plants have been in deep col- systems of the BUK series, as well as re- lapse, all the blame for their problems pairs on long-range S-300-series SAM sys- being fixed on ‘ineffective management’. tems. The sales (including replacement Therefore, in the naval shipbuilding parts) and repairs of soon-to-be-phased- area, Ukraine has the possession of power- out SAM systems S-75/SA-2 ‘Guideline’ ful design and development capacities. At and S-125/SA-3 ‘Goa’ could be safely neg- the same time, Ukrainian naval shipbuild- lected. A project to launch overall repairs ing yards cannot hope for export contracts, of S-300-series SAM systems on the prem- at least pending successful completion of a ises of Kiev’s Repair Plant ‘Radian’ proved program to build four corvettes to meet the to be a total failure, while the State Enter- Ukrainian Navy requirement. The Russian prise ‘Generator Plant’ (who was to be Federation and the PRC both have the pos- made responsible for upgrading transmit- session of substantial shipbuilding capaci- ter-receiver subsystems for the S-300) has ties, providing a direct competition to currently been undergoing bankruptcy Ukraine on third-country markets. In ab- proceedings. sence of indigenous naval weapons de- To date, the Russian Federation has signs, Ukraine has to engage with foreign exported a total of 40 S-300-series SAM fire countries. Here, Chinese weapons are units to the PRC. In addition, Russia has as- cheaper, whereas Russian weapons are sisted China in developing a copy of its S- more advanced and of higher quality, even 300PMU-1 SAM design under Chinese against the backdrop of Western counter- code name HQ-9, along with its simplified parts. On the naval market, Ukraine’ main version FT-2000. Previously, China competitive advantages over Russia or launched full-rate series production of the China are its gas turbine engine develop- HQ-2-type SAM system (indigenous ment and production capacities (which are replica of the S-75). It is worth of note here far more advanced than those in Russia or that the PRC was purchasing SAM weapon the PRC) and the capability to provide systems from Western suppliers until it modestly-priced high-quality repair and came under international arms embargo in maintenance services. 1989. Ukraine has since 1993 persistently proposed that Russia should assist in up- Competition on the air grading to modern standards and extend- defense market ing operational life of the UAF’s SAM Comparing with the naval market, sit- weapons inventory. To date, agreements uation is pretty different for Ukraine on the have been reached with Russia on a very air defense market. For one thing, Russia limited number а projects. In 2003, a joint enjoys pre-eminence on that market. Sec- project was completed to extend opera- ond, Ukraine cannot offer competitive tional life of the UAF’s 5V55R and S-300P enough current-generation designs. Its air SAM system inventories from 10 to 15
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    chepter2:Layout 1 23.11.2009 1:07 Page 32 Ukraine-China: 28 from Project-to-Project Cooperation to Strategic Partnership years. The core of Ukraine’s surface-to-air The PRC has developed and is offer- missile shield is comprised by Soviet-era ing potential export customers a range of S-300PT and S-300PS SAM systems manu- indigenous medium-range SAM systems factured back in the mid-1990s and pro- derived from the Western designs obtained viding effective engagement ranges limited prior to 1989 when it came under an inter- to 75 km. Newer and more capable S-300- national arms embargo. Using some West- series versions had never reached Ukraine, ern and ex-Soviet SAM designs as a basis, unlike China whom Russia was supplying the PRC has developed indigenous short- with the S-300PMU-1 and S-300PMU-2 range SAM systems HQ-7 and HQ-61A, in configurations. The HQ-9 SAM system addition to other air defense weapons (Chinese copy of the S-300), which can de- which it has aggressively promoted on ex- feat targets at ranges in excess of 100 km, port markets. The HQ-7 design was sold to employs a Chinese indigenous guided Iran where it was successfully reproduced SAM missile derived from the afterwards. Soviet/Russian-developed 5V55. The HQ- It could be said with a high degree of 9, which is operationally deployed with the certainty that it is China who is going to PLA Air Defense Force, is currently com- provide the toughest competition to Rus- peting in a Turkish long-range SAM tender sia on the long-range SAM markets where along with Russia’s S-400 and the United the supply of U.S. ‘Patriot’ SAM systems is State’s Patriot. impossible for political reasons. In the Most of 36D6/’Tin Shield’ radar sys- medium and long term, China might be of tems (that provide target identification interest to Ukraine as a potential coopera- and battle management for S-300-series tion partner in bringing up to modern stan- batteries) have been supplied by Ukrain- dards UAF’s SAM assets, most particularly ian company, the Research and Produc- in the aspects where real alternatives to tion Corporation ‘Iskra’ in Zaporizhzhia. Russian proposals might be required. In such a case, Russia does not even try to The State Enterprise ‘Arsenal Fac- develop a more or less comparable in- tory’ in Kiev was onetime designer of digenous design in the same category. It seeker heads for the ‘Igla’-series man- would therefore be safe to say that portable SAM systems, and it still offers Ukrainian and Russian suppliers are com- its most advanced developments. At the plementing each other on the S-300- same time, Russia has developed indige- series SAM market. nous capabilities for the design, develop- An upgrade package for the ‘BUK’ ment and mass manufacture of SAM system was developed to improve technologies in this category. The PRC substantially its operational capabilities has, since the 1970s, persistently worked by enhancing the high-frequency compo- to develop and mass produce indigenous nent of its transmitter-receiver unit. By copies of the ‘Strela-2’ and ‘Igla-1’ the time the upgrade was to be launched, portable SAM systems, and it even began China had established production of an equipping them with more advanced indigenous copy of the BUK, along with a guidance units of indigenously design missile equivalent to the 9M317. There- and make. Today, China itself offers the fore, there is no reason to expect China’s export market indigenous SAM systems purchasing SAM systems BUK or its QW-1, QW-2 and NH-5 (the QW-2 has al- naval variants ‘Uragan’ or ‘Shtil’. ready been exported to Bangladesh).
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    chepter2:Layout 1 23.11.2009 1:07 Page 33 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 29 In the field of air defense artillery, tition with each other on all markets, in- Ukraine is not in a position to compete cluding the PRC and regional markets. It with Russia or the PRC, as each of the three might be noted here that Ukraine had ob- countries have arsenals of pretty advanced tained a fully self-sufficient tank/AFV in- yet unsophisticated and cost effective air dustry after Russia refused to assist in defense guns. From-scratch development executing a large-scale tank contract from of an artillery system with a caliber below the Pakistan Army. As a result, Ukraine in- 76.2mm is widely considered to be eco- dependently developed deficient tank nomically unfeasible. guns and a range of explosive reactive Therefore, in the Ukraine-Russia- armor (ERA) designs (when asked to sup- China triangle, technological leadership in ply ERA systems to support the Pakistani SAM weapons niche markets belongs to contract, Russia charged a price almost Russia who has until recently been actively equivalent to 10pct of the entire cost of the supplying its most advanced SAM designs contract). Eventually it turned out that to China. Simultaneously, China has estab- Ukrainian company ‘Microtech’ Base Cen- lished acceptable quality indigenous pro- ter for Critical Technologies in Kiev, who duction of almost the entire range of SAM undertook to develop ERA solutions to all systems, from heavy long-range systems to types of anti-tank threats, has outpaced man-portable SAM launchers. The PRC here its key competitor, the NII STALI (Sci- has experienced some difficulties with es- entific Research Institute of Steel) in tablishing indigenous production of S-300- Moscow. The PRC has successfully estab- series systems, still it is unlikely to procure lished indigenous manufacture of ERA sys- more such weapons from Russia. Instead, tems and integrated them with the PLA further supplies of more current-genera- Army tank fleets. The ERA designs devel- tion configuration, the S-400, are possible. oped in Russia, Ukraine and the PRC all In such a case, Russia will try not to trans- have comparable specifications and price fer its newest technologies to the PRC until tags, but their operational capabilities can- subsequent-generation designs are in not be compared other than in a ‘combat test’. place. Ukraine’s capabilities in this field are A similar situation could be ob- limited to repairs of SAM systems for the served in the fields of active protection Ukrainian Air Force and potential export systems and electronic warfare equip- customers, and upgrades of technically ob- ment. It’s only reasonable that each of the solescent SAM designs for third-country countries gives preference to indigenous markets. designs when selecting active protection and electronic warfare system designs to meet requirements of their respective mil- Competition on the tank and itary forces. light armored fighting vehicle Therefore, in the domain of tank and (AFV) market lighter AFV protection, the three coun- In the tank and AFV area, pretty com- tries have comparable capacities and plex relationships have been developing compete with each other, with Ukraine between Russia, Ukraine and the PRC. having a slight edge over the other two. Ukraine and the Russian Federation both In this niche market, Ukraine could have have entire clusters of tank and lighter success on third-country markets, includ- AFV makers who enter into direct compe- ing in cooperation with its competitors.
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    chepter2:Layout 1 23.11.2009 1:07 Page 34 Ukraine-China: 30 from Project-to-Project Cooperation to Strategic Partnership The PRC launched indigenous manu- ects, whereas Russians have closely coop- facture of main battle tanks back in the late erated with China in the development of 1960s when, in March 1969, during an control systems. armed clash between the PRC and the So- Russia and Ukraine are both equipping viet Union along the Ussuri River on their tanks with French-supplied infrared im- Damansky Island, the Chinese troops cap- aging cameras, while having own develop- tured a Soviet T-62 tank. The tank was ment and manufacturing capacities for carefully examined by Chinese engineers technologies of this kind (Ural Optical Me- and some of its components were copied chanical Plant (Yekaterinburg, Russia) and and integrated into indigenous designs. NPK Photoprybor (Cherkasy, Ukraine), This suggests that the PLA Army currently which are competing with one another on has in service a great deal of technically ob- third-country markets). Unlike Russian and solescent armored vehicles. In the mean- Ukrainian counterparts, tank and AFV mak- while, China has been procuring ers in China do not have the ability so far to new-generation tanks in limited amounts, employ advanced Western technologies for probably for reverse engineering purposes. integration into own AFV designs, which re- The Chinese tank Type 90/MBT-2000, de- duces their competitive capacity on the export veloped from the Soviet-vintage T-72, had market. It would be worth of note, however, won against Russian (T-90) and Ukrainian that the United States and NATO have im- counterparts in a contract competition to posed limitations on exports of latest-genera- provide a tank fleet for the Pakistan Army, tion night vision equipment, which are and it has now been successfully exported applicable to all potential customers. to Pakistan as Al Khalid. The Al Khalid Meanwhile, fierce competition has been tank is equipped with the Ukrainian poly- observed between Russia, Ukraine and China diesel 6TD, which Pakistan had preferred on the oversaturated export market for light over a Russian gas-turbine motor. So, armored fighting vehicles. To date, this com- Ukrainian tank/AFV engines may hold the petition is largely restricted to the design, de- promise of significant orders, most partic- velopment and marketing of new-generation ularly when the Morozov Design and De- weapons stations. Here, all the three countries velopment Bureau built a new, more offer designs with roughly comparable spec- powerful engine. ifications and operational capabilities. For this In February 2009, Ukrainian tank reason, any contract award to Russia, Ukraine makers announced that 62 engine/trans- or China involving the supply of AFVs, ar- mission packs for Al Khalids would have mored personnel carriers (APCs) or armored been delivered to Pakistan before the end vehicles should be considered as one-time- of September, along with an initial ship- only contract. The Russian Federation, for in- ment of engine and gear boxes for special- stance, has delivered a small shipment of one application vehicles. In 2008 alone, hundred new armored GAZ-2330 TIGR ve- Pakistan awarded Ukrainian companies hicles to the PRC, while Ukrainian manufac- $2.5mn worth of contracts for supplies of turers have not yet found large enough replacement parts for purpose-built vehi- markets for their light armored vehicle de- cles. signs. Even so, Ukrainian products such as Ukrainian tank designers have cur- the newly-designed BTR-4 or upgraded BTR- rently been actively engaged with Chinese 3E hold much promise with respect to export counterparts on a range of joint R&D proj- opportunities.
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    chepter2:Layout 1 23.11.2009 1:07 Page 35 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 31 Tough competition between the three Progress Design and Development Bureau) countries has been observed on the market provide aero engines for the Russian-built for antitank weapons, as well. Arms factories aircraft supplied to the PRC. in Russian Tula have traditionally enjoyed Furthermore, a number of Ukrainian pre-eminent position here, followed by companies complement Russian counter- Ukrainian company Design and Develop- parts supplying end products; State Enter- ment Bureau ‘Luch’ who offers potential cus- prise ‘Krasyliv Assembly Manufacturing tomers its advanced designs such as the Plant’, JSC ‘Phasotron-Ukraine’, OJSC ‘Stugna’, ‘Kombat’, ‘Skif’ and ‘Baryer’ anti- ‘Corporation FED’ and more defense com- tank guided weapon (ATGW) systems. As for panies in Ukraine provide some key com- the PRC, it has long established indigenous ponents and subsystems for production of most of antitank weapons Russian-supplied MiG-29 and Su-27 fighter types. aircraft. These include coherent radar sys- Therefore, in the field of tanks and ar- tems, communications facilities, navigation mored fighting vehicles, Russia, Ukraine and aids, bomb release systems and other in- the PRC each enjoy comparably robust posi- dispensable subsystems of the combat air- tions on third-country markets. On the one craft. hand, they are competitors to one another. On The Mi-8, Mi-17 and Kamov-series the other hand, Ukrainian engine systems for helicopters supplied by Russia to export MBT applications have a number of advan- customers are all equipped with Ukrain- tages over rival designs, and may therefore ian-made engines, each accounting for hold the promise of further significant orders. about 20pct of the aircraft’s value. In such The PRC does not appear to be in a rush to a case, warranty and post-warranty servic- procure large enough shipments of current- ing of the engines is provided by the en- generation tanks to meet the PLA Army re- gine supplier. quirement. All the three countries are directly A characteristic of aeronautical coop- competing with each other on third-country eration within the Russia-Ukraine-PRC tri- markets. Here, the PRC enjoys traditionally angle is that the three countries are actively robust position on Asian-Pacific markets, and closely cooperating in the engineering while Ukrainian and Russian tank and AFV field, with Russia and Ukraine typically suppliers have roughly equal export oppor- transferring selected technologies to China tunities. In the niche market for light armored and the latter providing financial support vehicles, standing of each of the three coun- for selected R&D projects of interest to it- tries is relatively weak comparing to that of self. Western suppliers, and they therefore can ZMBK Ivchenko-Progress offers co- only hope for occasional contracts. operation in developing an engine for a projected Chinese indigenous civilian transport aircraft. Furthermore, in May Competition on the aircraft 2009, the Shenyang Aircraft Engine Plant market proposed that ZMBK Ivchenko-Progress Ukrainian designers enjoy a pretty should carry out expert evaluation of its stable position on the aircraft market, 12+ ton thrust aeroengine project. In the ro- which is the most capital-intensive market torcraft engine field, ZMBK Ivchenko- segment. Here, Ukrainian companies Progress offers the Chinese party its (OJSC Motor-Sich and ZMBK Ivchenko- AI136T1 engine, an enhanced, more pow-
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    chepter2:Layout 1 23.11.2009 1:07 Page 36 Ukraine-China: 32 from Project-to-Project Cooperation to Strategic Partnership erful version of the D136 engine for the An example of multidirectional na- Mi-26 helicopters that the PRC purchased ture of Ukrainian-Sino cooperation in mil- from Russia recently. Also, China might itary technology might be a deal on the have an interest in equipping its Russian- design, development and type certification supplied Mi-46 helicopters with the of the AI-222K-25F engine for the Hongdu AI8000V engine (a derivative of the AI- L-15 Falcon supersonic fighter trainer, 222K-25F engine for fixed-wing aircraft), which also calls for the transfer of produc- and the same engine type might work tion license for the engine. ZMBK well with the heavy payload transport Ivchenko-Progress would supply two pre- aircraft being currently developed by production units of the AI-222K-25F engine China. to Hongdu Aviation Industry Group ANTK Antonov Aeronautical Scien- (HAIG). An appropriate contract was tific/Technical Corporation has been signed during the 13th edition of Beijing closely engaged with its Chinese counter- International Air Show in October 2009. parts, assisting in the development of the According to the terms of the contract, the Y-H7/Y-14-100 aircraft (Chinese copy of Ukrainian partner will have to design, de- the An-26). velop, fly test and type certify the AI-222K- In the late 1990s/early 2000s, the PRC 25F afterburning turbofan for HIAG. took delivery of a large quantity of Russ- China is determined to aggressively ian-supplied Su-27 and Su-30MK fighter promote the Chengdu Aircraft Industry aircraft, and bought respective production Corporation FC-1/JF-17 and J-10 fighter licenses. Many of repair technologies for aircraft on potential export markets. The the aircraft and relating engines were JF-17 fighter, (otherwise known as FC-1), bought by China from Ukraine, and it was which was developed in a joint program Ukraine where Chinese engineers and with Pakistan, has already entered service technicians had been taught how to do re- with the PLAAF and Pakistan Air Force. pairs on the equipment. It is not impossi- According to a high-ranking Chinese de- ble that Ukraine might get interested soon fense industry official, the JF-17 has been in China as a partner in aircraft upgrade selected as a top-priority project for exten- programs. sive demonstration on the export market. The PRC has launched license pro- The Pakistan Air Force alone has the re- duction of the Su-27, under own designa- quirement for up to 300 aircraft in this cat- tion Shenyang J-11. Engines appeared to egory to replace its legacy fleets of Chinese be not among the Chinese aircraft indus- and French-supplied fighters. try’s strong points. But this is not the case Earlier in 2009, China revived its ef- now; China has already demonstrated a fort to build a C-130J class transport. The domestically designed alternative to the Chinese Y-9 is a 77 ton indigenously de- Russian AL-31F jet engine it has been signed aircraft that is back in development. buying to date as primary power plant for The Y-9 is basically a stretched version of the Shenyang J-11. A technological break- the 61 ton Y-8F-200, which is, in turn, a Chi- through achieved by China in the aircraft nese copy, and upgrade, of the Russian engine area has allowed for the propor- transport aircraft An-12. China wants to re- tion of Chinese-made components and duce its dependence on Russia for trans- technologies to be increased from 70-75 port aircraft, and has noted the success of percent to 90 percent or even higher. the latest version of the C-130, the C-130J.
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    chepter2:Layout 1 23.11.2009 1:07 Page 37 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 33 Ukraine has supplied 953 (1,500 ac- Ukraine and Russia are competing cording to alternative sources) R-27/AA- over Chinese contracts for limited supplies 10 ‘Alamo’ medium-range airborne of relatively high-tech weapons and de- missiles, and Russia supplied 1,200 R- fense equipment types. These usually in- 73/AA-11 ‘Archer’ short-range air-to-air volve transfers of technologies, missiles to China. In such a case, Ukrainian engineering documentation, manuals and missile producers were supplying their production licenses. China has already suc- missiles directly to China to support Russ- ceeded in launching indigenous produc- ian fighter aircraft supply contracts -- com- tion of most of previously deficient plementing Russian missile suppliers and technologies, and it will therefore become without entering into competition with increasingly independent of Russia or them. Ukraine as technology donors. As seen from the above, Russia will Continuing mutually beneficial coop- not be able to maintain the current high eration with the PRC is possible in the field level of aircraft exports to China in the fu- of engineering. China is keen to invest in ture, as China itself is evolving into a viable innovative technology developments and player of the global aeronautical market. setting up research-and-technology parks Given the difficulties being experienced by in Ukraine. Russia with its fifth-generation jet fighter On the space services market, Ukraine project, China is set to oust Russia from has most robust position in relation to Rus- third-country markets in the mid-term, and sia and the PRC in the niche market for may eventually develop into the world- space launch services. The PRC is keen to wide leader in the aeronautical industry. further expand its indigenous satellite nav- Here, selection of aeronautical suppliers igation and positioning system, while Rus- will, to a large degree, be determined by sia and Ukraine are both interested in political considerations and preferences. reverse transfer of Chinese microelectronic Therefore, Ukrainian companies will, for a technology. certain limited period of time, be able to On the aeronautical market, aircraft continue with direct supplies of missile design companies in Ukraine and Russia weapons and subcontracted supplies sup- might expect joint projects and co-devel- porting Russian contracts with third coun- opment contracts with, as well as a certain tries. amount of investment from China. In such a case, there is a certain degree of direct Conclusions competition being observed between air- In view of almost total absence of fully craft design and development companies integrated system supplies under military- in Ukraine and Russia. technical cooperation programs between On the markets for naval, aircraft, Ukraine and Russia, the Ukraine-Russia- tank and AFV engines, Ukrainian suppli- China triangle has been progressively re- ers are supporting export contracts for re- configured into a pyramid, with China at the spective host platforms, and are therefore top and Ukraine and Russia a the base of the interested in increasing supplies of naval pyramid. In such a case, China is financial ships, aircraft, tanks and AFVs within the donor of selected new developments, while Ukraine-Russia-China triangle. the Russian Federation and Ukraine act as Russia and Ukraine are worldwide donors of technology and designs. leaders in the tank building industry.
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    chepter2:Layout 1 23.11.2009 1:07 Page 38 Ukraine-China: 34 from Project-to-Project Cooperation to Strategic Partnership China does not seem to have any intent of entirely built and furnished at a shipyard procuring large amounts of current-gener- in an Asian-Pacific country and subse- ation tanks, but instead is keen to sell its quently registered as a Cyprus ship. earlier-generation fleets to third-country In the field of electronic warfare and markets. In the field of tank engines, communications equipment, the PRC has Ukrainian diesels have an edge over Russ- already achieved a certain degree of self- ian gas-turbine counterparts. sufficiency, to the extent that it can now In the field of naval shipbuilding, the offer indigenous products to export mar- PRC has been progressively and persist- kets. Almost only exceptions here are most ently developing its indigenous capacities latest radar designs and combat informa- for building naval ships in all categories up tion and control systems, which both re- to and including aircraft carriers, seeking a quire sophisticated mathematical tools worldwide ocean presence. In such a case, techniques to be developed and built. China apparently lacks adequate knowl- In the fields of air defense weapons, edge and experience. At the same time, conventional artillery and multiple rocket shipbuilding yards in Ukraine and Russia launchers, Russia has already saturated the have been severely underutilized (not in a Chinese market with new technology, to the small part because of legislation where a extent where Ukraine, under suitable con- vessel registration/license costs up to 40pct ditions, might contract with China for re- of the cost of the vessel itself). For this rea- verse transfer of technology required for son, it is more beneficial for a customer to indigenous development of a multi-role have a vessel design developed in Ukraine missile system and SAM system. Also, (as does Turkey), then to build the vessel Ukraine might be interested in China as a hull indigenously, and, afterwards, get the potential partner in repairs and upgrading vessel finished and furnished at shipyards of earlier defense technologies. in Europe. Alternatively, a vessel could be
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    chepter2:Layout 1 23.11.2009 1:16 Page 41 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 35 Third chapter The specifics of China’s policies towards regional markets T he Chinese economy targets well as transport vehicles and construction the export market, its export machinery have all shown a strong up- orientation showing a continu- ward trend in recent years, as well. Simul- ous trend of growth. In 2008, taneously, China, who has vigorously for example, China was the worked to re-equip and re-weapon its world’s second largest exporter, with ex- armed forces with advanced current-gen- ports amounting to 1.43 trillion US dollars. eration arms and military hardware types, Even though China ranks second in is keen to expand its presence on defense the world in GDP terms behind the USA export markets, most notably in emerging (according to IMF data, China’s GDP ran countries in Africa and the Middle East. into 7.916 trillion in the international dol- Meanwhile, China’s standing on the lar equivalent in 2008), its export-driven global defense market is pretty unique, this economy — with exports accounting for 80 being explained by a number of logically percent of the State foreign-exchange rev- interrelating factors. enue and the export-targeted industries 1. China has since 1989 been in a employing a combined workforce of about quasi-blockade situation. Following 20 million — makes the PRC highly de- Tiananmen Square massacre of 1989, Euro- pendant on export markets. Some 20 per- pean countries, in June 1989, imposed an cent of China’s gross industrial output and embargo on arms supplies to the PRC. agricultural produce is geared to exports, After the end of the Cold War era, the USA, the export Nomenclature comprising about as well, became the natural opponent of 50,000 products. advanced arms and military technology ex- The PRC has maintained trade and ports to the PRC. The issue of the embargo economic relationships with 182 countries lift was raised several times during 2004- and regions of the world, of which 80 have 06, still it has remained in place to date. government-to-go-vernment trade agree- This situation resulted in Russia having be- ments or protocols signed with China. come the key and almost the sole source of PRC’s key trade partners include advanced advanced weapons and military hardware and developed capitalist countries, most designs for China, this circumstance se- notably the USA, Japan and Western Eu- verely impeding the effort being made by rope, which all provide a combined 55 per- the PRC to obtain most advanced systems cent of China’s foreign trade turnover. and technology. As consequence, the influx China’s best selling product portfolio is still of new current-generation technology into made up of footwear, garments and toys, China has been limited, and as such it is yet the exports of electronic equipment, bi- putting a break on the development of in- cycles, motorcycles and motor vehicles, as digenous designs, thereby restricting
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    chepter2:Layout 1 23.11.2009 1:16 Page 42 Ukraine-China: 36 from Project-to-Project Cooperation to Strategic Partnership China’s capabilities as exporter of ad- during 1992-2005, on which basis the PRC vanced weapons types to developed na- has set up the capability for the domestic tions, and narrowing its niche markets in production of reverse engineered designs emerging countries as well as its traditional and the development of indigenous partner nations. third/forth-generation designs, there 2. The PRC has directed its effort to- might be an expectation of the PRC return- wards establishing and building up own ing to the status of major defense exporter R&D and manufacturing potentialities, in the foreseeable future, thus adding to ri- most notably through reverse engineering valry on that highly competition sensitive of foreign-designed items of equipment market. with the goal of their subsequent ‘domesti- 4. Products offered by China on the cation’ into indigenous designs. Even at the global defense market, being reverse engi- time of massive arms and military technol- neered copies of previously procured for- ogy imports in 1950-62 and 1992-2005, the eign designs, are all relatively low-tech, PRC was keen to establish and further de- hence unsophisticated and cheap products, velop its capabilities for indigenous pro- due to which China was present, if not duction and subsequent upgrading of the dominated on defense markets in Egypt, weapons and military equipment types Pakistan, Bangladesh, Thailand, Sri Lanka being procured from foreign suppliers. The and Tropical Africa. result is that most of Chinese defense ex- Nonetheless, China, due to its rapidly ports comprise products that are either re- growing industrial and scientific research versed engineered copies or officially potentialities, political weight and military licensed replicas of foreign designs, mak- might, has been expanding its influence as ing China a viable competitor on the de- a defense exporter with its own stable cus- fense export market, and particularly so tomer base and niche markets. When ana- with respect to countries of origin of Par- lyzing China’s standing on regional ent designs. markets, it is worth of note that the PRC, 3. The Chinese defense export has having been under an embargo and, si- been notable for clearly observable cyclic- multaneously, being a permanent member ity, this stemming from specific ap- of the UN Security Council at that and, proaches being applied to the development also, a member of the elite club of ‘grand’ of indigenous arms and military technol- nations, feels itself free to supply arms and ogy designs through reverse engineering. defense equipment to the markets causing Periods of defense procurements, followed some degree of concern for other defense by technological breakthroughs achieved suppliers. Specifically, major recipients of due to the influx of new advanced technol- Chinese defense products were Iran and ogy, take turns with periods of ‘domestica- Iraq at the time when the two were warring tion’ where foreign designs are repackaged against one another in 1980-88, in addition as Chinese and as such are subsequently to such countries of concern as Sudan and mass exported to third countries. An ex- Venezuela. ample of such cyclicity might be massive In the context of China’s standing and defense imports during the 1950s (1950- performance on regional markets, we feel 1962) and the transition to massive defense it necessary to cite here some data from a exports seen in the 1980s. Considering the report by Stockholm International Peace second wave of defense imports observed Research Institute (SIPRI). It follows from
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    chepter2:Layout 1 23.11.2009 1:16 Page 43 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 37 the SIPRI report that, in the period from plies to the above markets was different. In 2000 to 2008, China was supplying Algeria’s case, for example, Ukrainian sup- weapons and defense equipment to Alge- plies mostly consisted of fully-integrated ria, Argentina, Bangladesh, Cambodia, weapons systems, whereas China was sup- Chad, the Congo, Egypt, Gabon, Ghana, plying components and subsystems for in- Indonesia, Iran, Jordan, Kenya, Kuwait, tegration with Algerian-built corvettes Mali, Mauritania, Myanmar, Namibia, Djebel Chenoua FAC. Similar situations Nepal, Niger, Nigeria, Oman, Pakistan, can be seen on other markets (see the table Rwanda, Saudi Arabia, Sierra Leone, Sri below). Lanka, Sudan, Tanzania, Thailand, Based on the data as presented in Uganda, Venezuela, Zambia and Zim- Table 1, a number of general tendencies babwe. In the very same period of time, might be singled out. according to the same SIPRI report, 1 Ukraine acted as supplier of compo- Ukraine, was supplying defense equip- nents and subsystems for China-built items ment to some of the above listed countries of defense equipment. This is most notably among other markets. This is about Alge- about AI-25/DV-2 turbofans for China-sup- ria, Chad, the Congo, Egypt, Iran, Jordan plied K-8 Karakorum combat capable trainer Kenya, Myanmar, Namibia, Nepal, Nige- aircraft. Each and all of the recipient countries ria, Pakistan, Sri Lanka, Sudan, Thailand, of the K-8 Karakorum trainer aircraft were re- Uganda, Zambia and Zimbabwe. cipients of the turbofan engines as well. As seen from the SPRI report, the con- 2 The PRC acted independently of tent of Ukrainian and Chinese defense sup- Ukraine as component and subsystem sup- Table 1 Recipient country Ukraine China AI-25/DV-2 engines for Components and subsystems for in- Czech-supplied L-39 tegration with Algerian-built Djebel trainer aircraft; Chenoua FAC Mi-24V/Mi-35/Hind-E combat helicopters; R-27/AA-10 Alamo Algeria BVRAAM R-73/AA-11 Archer BVRAAM R-40/AA-6 Acrid BVRAAM; T-72 battle tanks Mi-24V/Mi-35, Mi-8/Mi- ZFB-05 APC/ISV 17 helicopters; Chad Su-25/Frogfoot-A ground attack aircraft; BTR-80 APC Mi-24P/Mi-35P/Hind-F ZFB-05 APC/ISV Congo combat helicopters
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    chepter2:Layout 1 23.11.2009 1:16 Page 44 Ukraine-China: 38 from Project-to-Project Cooperation to Strategic Partnership Recipient country Ukraine China An-74/Coaler-B transport K-8 Karakorum-8 trainer/combat air- Egypt aircraft craft assembled from kits in Egypt An-74/Coaler-B Transport Components and subsystems for Iran aircraft (1998-2002 con- weapons systems assembled/pro- tracts duced in Iran An-32/Cline Transport air- W-86 120MM Mortar Jordan craft BM-21 Grad 122mm MRL Y-12 transport aircraft Kenya T-72M1 MBT WZ-551 APC R-27/AA-10 Alamo Components and subsystems for BVRAAM naval ships built in Myanmar Myanmar T-72 MBT BTR-3U Guardian IFV MT-LB APC AI-25/DV-2 Turbofan en- K-8 Karakorum-8 trainer/combat air- gines for China-supplied craft Namibia K-8 Karakorum F-7MG Fighter aircraft trainer/combat aircraft Mi-8/Mi-17/Hip-H heli- MA-60 transport aircraft Nepal copters WZ-551 APC BTR-3U Guardian IFV F-7M Airguard Fighter aircraft Nigeria Mi-24V/Mi-35/Hind-E PL-9 SRAAM for F-7N1 combat air- Combat helicopters craft Components and subsys- Type-59-1 130mm and В-33 120mm tems, particularly diesel towed guns engines for Al-Zarrar, F-7MG fighter aircraft MBT-2000 and Al Khalid J-10/FC-20 FGA aircraft (contract may tanks not yet signed) Il-78M/Midas A-5C Fantan FGA aircraft tanker/transport aircraft Naval weapons and subsystems (in- cluding C-802/CSS-N-8 anti-ship mis- siles, Type-347G fire control radars, Pakistan C-803 anti-ship missiles and R-440 Cro- tale SAMs) for Jalalat FAC and Jiang- wei (F-22P) frigates built in Pakistan YLC-2 air surveillance radars PL-12/SD-10 BVRAAM for JF-17 and possibly modernized Mirage-3/5 com- bat aircraft (contract may not yet signed) KJ-200 AEW&C aircraft built around the Y-8 (delivery from 2010)
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    chepter2:Layout 1 23.11.2009 1:16 Page 45 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 39 Recipient country Ukraine China AI-25/DV-2 turbofan en- Type-062/Shanghai patrol craft gines for China-supplied BT-6/CJ-6 trainer aircraft K-8 Karakorum Sri Lanka trainer/combat aircraft Mi-24P/Mi-35P/Hind-F combat helicopters MiG-27K/Flogger-J FGA aircraft AI-25/DV-2 turbofan en- Type-85-IIM tanks gines for China-supplied A-5C Fantan FGA aircraft K-8 Karakorum WZ-551 APC Sudan trainer/combat aircraft K-8 Karakorum-8 trainer/combat air- craft FN-6 portable SAMs BTR-3U Guardian IFV Pattani-class frigates Thailand C-801/CSS-N-4/Sardine and C- 802/CSS-N-8 anti-ship missiles BMP-2 IFVs Y-12 transport aircraft Uganda MiG-21bis/Fishbed-N fighter aircraft AI-25/DV-2 turbofan en- K-8 Karakorum-8 trainer/combat air- gines for China-supplied craft Zambia K-8 Karakorum MA-60 and Y-12 transport aircraft trainer/combat aircraft BTR-70 APC AI-25/DV-2 turbofan en- K-8 Karakorum-8 gines for China-supplied trainer/combat aircraft Zimbabwe K-8 Karakorum trainer/combat aircraft An-12/Cub transport air- craft plier; it did not directly supply compo- China is going to supply Pakistan with KJ- nents or weapons subsystems for any of 200 AEW&C aircraft ordered for delivery Ukrainian-supplied items of defense beginning in 2010. The KJ-200 is designed equipment (though, it is not fully clear around the Y-8 military transport aircraft, whether Chinese-made components were itself a licensed copy of the Ukrainian-de- present or not in Ukrainian-supplied items signed Antonov An-12. Furthermore, of defense equipment). Nepal exported from China the M-60 tur- 3 Weapons and items of defense boprop 60-seat airliner that was built equipment supplied by China to the above around the Y-7, again, a licensed replica of markets were all reverse engineered copies the Ukrainian An-24. This tendency might of Ukrainian designs. As one example, harbor the risk of China eventually seizing
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    chepter2:Layout 1 23.11.2009 1:16 Page 46 Ukraine-China: 40 from Project-to-Project Cooperation to Strategic Partnership some niche markets that previously be- Separate mention should be made of longed to Ukraine, by supplying Ukrain- the fact that, according o SIPRI, Ukraine ian-designed products repackaged as was actively exporting defense products to Chinese or license assembled in China. The China, while the latter was not exporting same pattern might be expected with re- its defense products to Ukraine. There spect to the ‘Zubr’-class landing craft air might be two explanations for this situa- cushion vehicle, if production of the design tion: was launched in China under a Ukrainian 1 Ukraine’s defense market is effec- license. tively closed to imports, with examples of 4 On overlapping markets, the tough- rare exceptions being unmanned aerial ve- est competition between Ukraine and hicles bought from Israel to meet the China could be observed on niche markets Ukrainian Army requirement and helicop- for military transport aircraft and armored ters bought from Eurocopter to meet the fighting vehicles, while the least competi- Emergencies Ministry’s requirement. tion could be seen on markets for helicop- Other known occurrences of defense im- ters (with Ukraine supplying Mi-series ports to Ukraine (Ukraine reported four retired helicopters and China supplying such occurrences to the UN Conventional none), naval weapons and equipment Weapons Registry 2008) are more intended (Ukraine supplied none whereas China for re-export purposes and include Soviet- was aggressively promoting its products in built items of defense equipment. this category), beyond visual range air-to- 2 At this stage, China has not yet air missiles (specifically, R-27, R-73 and R- reached the level of technology allowing 40 missiles which are traditional for penetration into the defense market in commodities of Ukraine’s export nomen- Ukraine who itself has in place tradition- clature being supplied to China among ally strong schools of military design. other markets) and fighter aircraft (unlike At the same time, as seen from the China, who was acting far more aggres- SIPRI report for the 2000-2008 period, sively on this niche market, Ukraine had Ukraine was actively exporting weapons, the sole contract to supply MiG-series defense equipment and related parts and fighters to Uganda). subsystems to China. A few examples are It would be worth of note now in this 1,577 R-27/AA-10 Alamo BVR air-to-air context that China was supplying transport missiles for the SU-27SK and Su-30MK fight- aircraft and armored fighting vehicles to the ers (including 953 such missiles supplied markets which did not see any of defense during 2005-2008, according to the UN Con- supplies from Ukraine in that period. One ventional Weapons Registry), AI-25/DV-2 example might be Chinese supplies of Y-8 turbofan engines for Chinese indigenous K- (licensed copy of the An-12) and MA-60 8 Karakorum combat capable trainer aircraft (built around the Y-7, reciprocally a licensed (including 58 engines supplied from 1997 to copy of the An-24) aircraft to Tanzania and 2004, and 35 supplied during 2005-2008), 2S9 Ghana, respectively — the markets that were 120mm self-propelled guns, R-73/AA-11 not among Ukraine’s defense export desti- Archer BVRAAMs, Kh-55/AS-15 Kent air- nations in the period under review. This fact launched cruise missiles, passive electronic might be indicative either of latent competi- monitoring radar systems ‘Kolchuga’ and tion or some division of defense markets be- DT-59 gas-turbine engines for the Type tween Ukraine and the PRC. 052B/C Luyang-class destroyers.
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    chepter2:Layout 1 23.11.2009 1:16 Page 47 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 41 Regarding the division of defense mar- ticularly so with respect to tendencies for kets between Ukraine and China, it might be markets narrowing or expanding, or over- noted that most of markets for Chinese de- lapping market niches shared by Ukraine fense products are countries in Asia, the and China. Middle East, Africa and South America. So, as seen from the above, Ukraine Also, China once supplied defense equip- and China are pretty viable competitors on ment to Sudan, Venezuela and Iran. markets for military transport aircraft and Simultaneously, Ukrainian defense armored fighting vehicles, with future products, even though their markets over- competition on those markets tending to lapped in the above listed countries with grow further. However, as Ukraine and the those of China’s, preserved previously PRC have been drawing closer together in won marketplaces of their own. Ukraine areas such as the design, development, was supplying weapons and defense production and upgrading of aeronautical equipment to ex-Soviet and ex-Warsaw technologies, and given successful cooper- Pact states as well as Balkan countries, in ation between the two countries in the tri- addition to the USA and Russia (them- national Ukraine-China-Pakistan MBT-2000 selves the world’s top defense exporters project to produce the Al Khalid main bat- and the markets not seen on the list of tle tank for the Pakistan Army, it might China’s defense export destinations in the well be expected that relationships be- period under review) and, furthermore, to tween Ukraine and China will progress in Afghanistan and Iraq (in 2006-2008). The the direction where the two will comple- latter is indicative that Ukraine has been se- ment one another, manufacturing defense lected by the International Anti-Terror products both for their respective domes- Coalition members, including most partic- tic markets and for third markets as well. ularly the USA, as a supplier of cost-effec- Until this expectation becomes a real- tive yet highly-efficient European-class ity, however, China has been manufactur- defense products. ing indigenous copies of the Ukrainian The SIPRI 2000—2008 report shows that Antonov family of aircraft, specifically the Ukraine was supplying defense commodities Y-5 Shijiazhuang (reverse engineered Chi- to 53 countries as compared to 34 for China. nese copy of the An-2), Y-7 Xian (An-24), Separately, it might be noted that any Y-8 Shaanxi (An-12), Y-9 Shaanxi (multi- coherent analysis of markets for Chinese purpose transport, a variant of the Y-8X defense products is very difficult to do be- Shaanxi, reciprocally a copy of the An-12), cause of the lack of information provided MA-60 Xian (a 60-seat turboprop airliner by China on its defense export supplies. built around the Y-7, itself a copy of the Unlike Ukraine who openly and accurately An-24).While manufacturing aircraft of declares information on its defense sup- these types, China has vigorously worked plies, China is reluctant to provide the UN to add new variants to its family of aircraft Conventional Weapons Registry with full designed as indigenous copies of Ukrain- information, except for disclosing identities ian equivalents; China is currently devel- of recipient countries and providing oping the Y8F-600 version with Ukrainian weapon descriptions, but not their precise assistance, and it has signaled an interest designations. With open official informa- in the An-70 military transport, most no- tion unavailable, the task of doing the tably with regard to building an indigenous analysis is very complicated, and most par- same-design equivalent. Simultaneously, the
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    chepter2:Layout 1 23.11.2009 1:16 Page 48 Ukraine-China: 42 from Project-to-Project Cooperation to Strategic Partnership PRC is keen to have foreign-designed aircraft cently, some variants being Chinese copies of assembled at Chinese factories; in June 2009, foreign designs. If Ukrainian light armored China delivered its fist Airbus A320 jet air- IFV supplies were small and not numerous in liner assembled at the Airbus A320 Family 2000-2008 (Ukraine only supplied its BTR-3 Final Assembly Line (FAL) in Tianjing, the armored personnel carriers to Myanmar and first Airbus final assembly line to have been Nigeria), China was far more successful with launched outside Europe. The Tianjing FAL is its WZ551 and ZSL92 vehicles. Interestingly expected to assemble five A320s in 2009 and enough, some reports have it that China sup- further 12 in 2010. In addition to this, Harbin plied a significant shipment of WZ551 Aircraft Industry Group Company Limited, wheeled armored personnel carriers to Thai- one of China’s proven first line suppliers of land. Other say that two hundred such vehi- aircraft, signed a framework contract with cles had been ordered for delivery, and that Airbus in February 2009 to jointly produce it was after completion of the Thailand con- composite material parts and components for tract when the Type 85/YW-531H variant the A320 family of aircraft. This and other began to be series manufactured in China to moves by China are apparently intended to meet the requirements of the PLA and foreign lend weight to its position on aircraft markets. customers (among then Myanmar). The fact As regards armored fighting vehicles that such a considerable shipment of IFVs (AFVs), situation looks pretty interesting was supplied to Thailand by China looks there. If Ukraine already has a ‘closed loop’ very interesting, especially considering that AFV-production cycle which it inherited after Ukraine with its BTR-3U1 APC won a 2007 the collapse of the Soviet Union, China’s AFV tender competition to meet the Thailand industry has been in the early stages of de- Army requirement for 96 wheeled armored velopment. Despite a great progress troop carriers. The contract award was even- achieved, the Chinese AFV industry is still tually postponed until a future date pending lagging far behind the international quality completion of investigation into a bribe-tak- standards, its capabilities at this stage of de- ing scandal involving high-level Thailand of- velopment being constrained, confined to re- ficials. This fact by itself well illustrates the verse engineering of foreign-designed degree of competition between Ukraine and vehicles. Excepting the Pakistan Army, the the PRC on that specific niche market, and traditional customer for Chinese-built battle this already fierce rivalry is expected to grow tanks, Chinese AFV exports have been lim- still further as time goes by. ited to small shipments supplied to underde- Against that background, considering veloped countries. Such a situation offers China’s capability to ‘domesticate’ previously considerable advantages to Ukraine, not only imported technology and items of equipment in terms of lesser competition, but, also, in into indigenous designs, and the fact that terms of supplies of the AFV components (in- China has been closely engaged with Ukraine cluding engine and gear boxes for the Pak- in some defense technology areas, most par- istan Army), which China is not in a position ticularly so in aeronautics, a further sharpen- to manufacture independently thus far. ing of competition between Ukraine and Unlike heavyweight AFV types, the de- China might be expected. Therefore, Ukraine velopment of Chinese light armored infantry must get itself actively engaged in projects fighting vehicles (IFV) has enjoyed a tremen- with China as soon as practicable – on legal dous growth. The Chinese portfolio of light clearly defined contractual terms and with armored IFV designs has been expanded re- longest possible contract periods.
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    333:Layout 1 23.11.2009 4:56 Page 51 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 43 Fourth chapter Military-Technical Cooperation between Ukraine and China: Directions and Cooperation Patterns U kraine and the People’s Re- 2005-06 China bought from Ukraine more public of China have a rich than 900 R-27-series air-launched missiles, history with trading in arms in addition to sporadic purchases of other and defense equipment as aerial weapons types, among them a ship- well as dual-use items. Mili- ment of bomb release systems produced by tary-technological cooperation between the Krasyliv’s Assembly Manufacturing Plant. two countries had at different times em- Ukrainian land warfare equipment sup- braced almost all areas of defense technol- plies to China, on most occurrences, in- ogy — from armored fighting vehicles cluded fully-integrated conventional (AFVs) to precision weapons systems and systems such as 2C9 large-caliber artillery sophisticated radio-technical equipment. systems or BTR-70 armored personnel car- Practices of joint work between Ukraine riers. Regarding defense electronics, and China in the defense technology area Ukraine once delivered to China a few have passed several milestones, and vari- ‘Kolchuga’ passive electronic monitoring ous forms of cooperation have taken shape. radar systems. Ukrainian-Sino military-technical coopera- – A shift has recently been noticeable tion is notable for the following: towards increasing occurrences of Ukraine – China, in almost all cases, is the re- transferring production licenses (as China cipient of weapons systems, military hard- places premium precisely on know-how ware and dual-use goods; bilateral and production technology) and providing cooperative projects, as well, are held ex- repair and maintenance services, with clusively for China, with isolated cases of China being most interested in acquiring joint defense technology projects carried the knowledge of principal importance for out for third countries; the development of own defense industrial – By the start of 2009, Ukrainian ex- capabilities. ports of ready-made items or systems to Existing cooperative projects do not China had reduced to almost zero, this allow for Ukraine to participate as a full- being explained by China’s policy aimed to fledged partner in the development or ensure its requirement for weapons and manufacture of defense technologies defense equipment is to the maximum pos- jointly with China, Ukraine’s workshare sible degree fulfilled through domestic being mostly confined to ‘hot spot’ works production. For example, Ukraine had for or ‘hot spot’ projects. But how could it be some time been one of China’s biggest sup- otherwise if Ukraine has never invested pliers of guided air to-air missiles; during money in the promotion of some or other
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    333:Layout 1 23.11.2009 4:56 Page 52 Ukraine-China: 44 from Project-to-Project Cooperation to Strategic Partnership initiatives to date, its role being effectively basis, the tasks which China thus far lacks reduced to performing, on the outsourcing the expertise or capability to perform on its Selected international collaboration and cooperation patterns relating to R&D/pro- duction of weapons and defense technologies Cooperation/collaboration № Brief description pattern 1 Licensed production A form of transnational cooperation providing for the selling/transfer of production informa- tion which enables a foreign government/pro- ducer to manufacture an item of defense equipment 2 Co-production A form of international division of labor where two or more participating countries share, based on their core expertise and knowledge in respec- tive areas, the manufacture of an item of defense equipment designed and developed by one of the participating countries 3 Joint venture An entity jointly owned and managed by de- fense-industrial firms/corporations of two or more countries to undertake the development and manufacture of a specific item or type of arms or defense equipment together 4 Collaborative design and de- A form of cooperation where entities from two or velopment more countries are working together to design, develop and (usually) commercialize an item of arms or defense equipment 5 A family of weapons system A form of international division of labor where two or more countries undertake to work together to produce a family of weapons systems or defense equipment (for example, air-to-air missiles). For this purpose, each specific weapons system or an item of defense equipment is designed and developed by one participating country to be subsequently co- manufactured by all the participating countries. 6 Multinational strategic al- A formal relationship between defense-industrial liance firms/corporations of two or more countries. The alliance is a cooperation aimed for a synergy where the benefits from the alliance will be greater than those from individual efforts. The strategic alliance usually provides for information swapping between partners or investigating into potentialities for fu- ture cooperation in the design, development and manufacture of new weapons types or items of de- fense equipment.
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    333:Layout 1 23.11.2009 4:56 Page 53 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 45 own. Meanwhile, the global collaboration sign, development and production of mili- best practices provide a few examples of tary equipment types based on Soviet-era cooperation patterns that could be applica- designs. Here, it has strongly reinforced its ble to specific areas or projects. scientific research and industrial capabili- Ukraine’s interest in cooperation with ties that enabled it to go away from de- China in military-political and military- pendence upon Russia in meeting its technological sectors can and must be look- defense-related requirements, and, fur- ing at the medium and long term. In the thermore, to generate alternative solutions military-political cooperation sector, in a number of military technology areas. Ukraine should direct its efforts towards When the interests of both partners coin- creating an environment for a strategic cide and optimum cooperation patterns are partnership to be set up between the two identified, these potentialities, if properly countries, as Ukraine and China do not employed, could help Ukraine resolve have ‘zones of conflict’ or differences relat- some of the pressing problems existing ing to their respective national security in- both on the domestic and global defense terests. In the military-technological sector, markets. cooperation between Ukraine and China There are two aspects in which China should be built up with due regard for the is distinguished from Ukraine or Russia, global market trends in the development whose defense companies often act in tan- and production of weapons and defense dem when carrying out projects for the equipment, specific nature of that ex- PRC. First, China has built and continues tremely competition-sensitive market, as building own military technical schools of well as the immediate top-priority goals thought in high-technology clusters. Sec- the two countries are most interested to ond, it has persistently worked to enhance achieve in the short term. and improve its industrial base on which China is interested in Ukraine as a co- to produce some or other weapon of de- operation partner in areas such as theory fense equipment types. These two compo- and practice of building aircraft carriers nents of principal importance, specifically and ‘Zubr’-class landing craft air cushion human resources and industrial base, are vehicles; theory and practice of employing what will provide a strategic advantage for simulators for naval force training; ac- China in re-designing and improving tive/passive radar equipment; ballistic weapons and defense equipment types im- missile system controls; and the develop- ported from Russia or Ukraine and, also, in ment of AFV and aircraft engines as well developing indigenous defense designs. as gas-turbine engines. The extent of wear-and-tear of defense-in- Ukraine’s mid-term interest in mili- dustrial assets in Ukraine and Russia is tary-technical cooperation with China such that, on many occurrences, it effec- should comprise areas such as military tively prohibits them from creating defense aeronautics (specifically fighter, military- technology designs capable of competing transport and combat capable trainer air- on the export market with Chinese-devel- craft), missile technology and defense oped alternatives, particularly in terms of electronics. China as a military-technolog- cost effectiveness. This, among other areas, ical cooperation partner is of interest to is about microelectronics, optoelectronics Ukraine in that China has successfully re- and measuring elements which intrinsi- solved many of the tasks relating to the de- cally comprise the ‘nervous system’ of any
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    333:Layout 1 23.11.2009 4:56 Page 54 Ukraine-China: 46 from Project-to-Project Cooperation to Strategic Partnership of weapons systems, upgraded or devel- carried out, and it also assisted in the build- oped. China has acquired the strategic ad- ing, testing and subsequent qualification of vantage of this kind through high-tech the aircraft. equipment acquisitions from European As well as the ARJ-21 project, suppliers among other things, and the ben- Antonov has been engaged with Shaanxi efit from this advantage will only grow as Aircraft Industry Corporation (SAC) in re- time goes by. designing the Y-8F600 aircraft – an up- graded variant of the Y-8F400, itself a Aeronautics Chinese copy of the Antonov’s An-12 air- The aeronautics sector is the one that craft. Antonov’s workshare under the proj- dominates in military-technical coopera- ect included R&D works, development of tion between Ukraine and China. This is no wing production technology, building sev- wonder, considering Ukraine’s expertise eral aircraft models and providing techni- and capabilities in this particular sector. cal advice on aircraft testing. Remarkably ANTK Antonov Aeronautical Scien- enough, it was Anonov who, at its time, tific/Technical Corporation, for instance, advised China Aviation Industry Corpora- enjoys a pretty rich history in working to- tion II (AVIC II) to invite Ukrainian aircraft gether with Chinese partners. This, above engine makers ‘Motor-Sich’ and Ivchenko all, is about cooperative R&D projects and ‘Progress’ Design Bureau to join in the Y- upgrades on transport (military transport) 8F600 project. aircraft for China. In 2002, ANTK Antonov In September 2007, ANTK Antonov and China Aviation Industry Corporation I and SAC signed a memorandum of intent (AVIC I) signed a contract under a Chinese to set up Beijing’s aeronautical engineering program to design and develop China’s center – a joint venture operating in full first ever regional turbojet airliner of the conformity with respective legislations of XXI century, the ARJ-21. Ukraine and China. The joint venture has The contract provided, in particular, been set up to perform contractually re- for co-development of a supercritical wing quired works involving R&D on new air- for the aircraft. Antonov’s responsibilities craft and upgrades to already existing under the contract included intermediate designs; validation of new aircraft designs; and final calculations, computing geome- aircraft layout design; preliminary re- try of the wing, building its simulation search; project evaluation and scientific re- models, and evaluating the wing’s main- search works of other kinds. tainability and robustness performance. It has been projected that the joint venture Furthermore, Antonov subjected supercrit- would perform development and engi- ical wing models of various configurations neering work on a lightweight short take- to wind-tunnel testing, along with models off and landing (STOL) transport aircraft of the aircraft as a whole, including the and a medium STOL transport aircraft, as- ones with power jet simulators. sist in a Chinese project to build a large In addition to this, the Ukrainian transport airplane and support upgrade party built a wind-tunnel model of the projects for legacy aircraft designs. ARJ-21 and subjected it to high-speed tun- Meanwhile, potentialities of China’s nel testing. Antonov provided Load Analy- combat and trainer aircraft industries are sis on which basis the wing’s static load of interest to Ukraine, most notably in the strength and fatigue evaluation had been context of the challenges facing the Ukrain-
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    333:Layout 1 23.11.2009 4:56 Page 55 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 47 ian Air Force (UAF). Specifically, the the fleet to be solely performed by MoD’s UAF’s fighter fleet of ‘lightweight’ MiG-29s and Ministry of Industrial Policy’s repair and heavier Su-27s has almost reached the facilities. But with the heavier fighter fleet limit of its service life, and as such the fleet (Su-27), the situation appears to be far less needs to be upgraded to preserve its mili- clear, if not threatening, given that almost tary usefulness. That means that the UAF all of the UAF’s Su-27s would have has, first, to evaluate the fleet’s serviceabil- reached the end of their expected service ity status, perform its projected reliability life as early as by the beginning of 2010. analysis and, based on the results obtained, This being the case, upgrading and life ex- to determine the amount and the list of the tension of the Su-27 fleet becomes an ex- works to be done. Once this work is com- tremely urgent challenge for the Ukrainian pleted, the fleet will need to be upgraded Armed Forces. Unlike with the MiG-29, to modern standards, and this endeavor is any kind of full-scale upgrading of the Su- going to be even more complex and chal- 27 would be outside the scope of the do- lenging. Both life extension and upgrades mestic defense industry capabilities. traditionally require designer’s and Notably enough, according to the UAF maker’s authorization. For Ukraine, that Commander, Ivan Rusnak, “In the late issue has become a political one, as the de- 1990s/early 2000s, China bought from Rus- signers and makers of almost all core sys- sia a great quantity of Su-27 and Su-30MK- tems in the Ukrainian Armed Forces’ type aircraft together with related inventory had left in Russia following the production license. It is no secret that, as demise of the USSR. By 2009, not a single strange as it may seem, it was Ukraine joint project relating to UAF’s fleet mod- where repair know-how and relating en- ernization had existed between Ukraine gines for the aircraft came from to China, and the Russian Federation. Against this and it was Ukraine where Chinese special- backdrop, Ukraine’s parliament, the Verk- ists were taught how to do repairs on the hovna Rada, on April 15, 2009, adopted a aircraft of this type”. bill “On amending some laws of Ukraine China, who had been buying Su-27 with regard to maintaining serviceability multi-role fighters for a long period of and upgrading of the Ukrainian Armed time, has already license built the Su-27, Forces’ weapons arsenal and equipment in- under own designation Shenyang J-11. En- ventory”. Under the new legislation, the gines appeared to be not among the Chi- Cabinet of Ministers and the Ministry of nese aircraft industry’s strong points. But Defense are vested with the authority over this is not the case now; China has already the Ukrainian Armed Forces’ weapons sys- demonstrated a domestically designed al- tems and military hardware that are free ternative to the Russian AL-31F jet engine from Designer Supervision. In actual fact, it has been buying to date as primary this applies to the aircraft fleets, missile power plant for the Shenyang J-11. In Feb- systems and other ‘disputed’ equipment ruary 2008, Russian defense export author- inventories on which Ukraine and Russia ity Rosoboronexport’s representative to the have never reached any sort of a mutually PRC, Andrei Plotnikov stated that “…a acceptable agreement to date. technological breakthrough achieved by Regarding the MiG-29 fighter fleet, China in the aircraft engine area has al- the Ukrainian MoD has developed a pro- lowed for the proportion of Chinese-made gram allowing for a limited upgrading of components and technologies to be in-
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    333:Layout 1 23.11.2009 4:56 Page 56 Ukraine-China: 48 from Project-to-Project Cooperation to Strategic Partnership creased from 70-75 percent to 90 percent or tween ANTK Antonov and the re-emerg- even higher”. Given the progress made by ing Chinese aircraft corporation AVIC-I- China’s fighter aircraft industry recently, AVIC-II. This option (which requires a Ukraine might consider recruiting Chinese speedier pace of the process to transform partners to help resolve some of the tech- the ANTK Antonov into a share-holder nological tasks associated with its Su-27 company) would provide a platform en- fleet upgrade. abling parity-based cooperation and mu- In the military-transport aircraft sec- tual oversight of marketing practices being tor, Ukrainian engagement with China employed or work being carried out on might include identifying a cooperation some or other specific market. At the same pattern enabling the Antonov An-70 mili- time, this direction of joint work on the An- tary-transport aircraft to be licensed as- 70 project with China still allows Kiev to sembled in China, following a pattern pursue its own effort aimed at advancing already tested by Ukraine in joint work on the aircraft to the European market to fill the An-140 and An-148 aircraft projects in the gap emerged as a result of delays with Iran. Such an approach might be ac- with completion of the A400M program. ceptable to China as well, considering that Furthermore, ANTK Antonov offers it has already employed similar patterns to for employment on China’s airlift and com- establish domestic production of a range of mercial passenger air transportation mar- foreign-designed aircraft types. Remark- kets several of its current-generation ably, China Aviation Industry Corporation aircraft such as the new regional airliner I (AVIC I), back in 2007, announced its in- An-148, in addition to the An-74-series air- terest in producing a new heavy transport craft that are currently being advanced to a aircraft with a payload capacity of 60+ new, higher level of development. Chinese tons. For this purpose, the Chinese party customers, as before, are welcome to use was considering a few cooperation pat- the Antonov Airlines’ fleet of the An-124- terns with Ukraine, specifically recruiting 100 ‘Ruslan’ transports. Moreover, there is ANTK Antonov to assist in R&D works on an agreement on intent concerning a Chi- the new aircraft, buying an equity in nese development project for a new re- ANTK Antonov (provided that there is an gional 70-seat turboprop airliner. appropriate authorization by the Ukrain- Regarding the trainer aircraft sector, ian Government) and setting up a joint mention should be made of a proposal venture to support the project both in made to a visiting Ukrainian MoD team in China and Ukraine. January 2009 to consider potentialities for This would be advantageous to co-production of the supersonic trainer air- Ukraine in that it would allow for the An- craft L-15, a design by the AVIC II’s 70’s potential customer base to be ex- Hongdu Group. In that context, it is im- panded to reach the large Chinese market. portant to know that Ukraine’s OJSC On the other hand, this involves the risk ‘Motor-Sich’ – the flagship aircraft engine that the An-70 may follow the same path as supplier on the post-Soviet expanse — has the Russian-designed Su-27 which eventu- been engaged with Chinese aircraft ally has become strongly ‘Chinized’ in all builders since 2006, when it signed a con- of its key components and subsystems. tract with Hongdu/AVIC II for an initial That risk could be alleviated, for example, supply of AI-222-25F engines to equip the by way of an equity for equity swap be- L-15s. The overall volume of the supply is
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    333:Layout 1 23.11.2009 4:56 Page 57 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 49 projected to eventually amount to 200+ en- ing program-focused foreign acquisitions, gines, with 10 engines delivered in 2008 it still lacks the expertise required to build and 22 more ordered for delivery by the a ship of this type and dimensions. Second, end of 2009, at a price tag of about $1 mil- Beijing is keen to get the indigenous carrier lion each. The 4000 kg thrust AI-222-25F, a built at the earliest time possible. This all design by Ivchenko State Design Bureau gives a chance for Ukrainian companies to ‘Progress’, is series manufactured by OJSC get contract awards for skills and ship- ‘Motor-Sich’ in cooperation with MMPP building technology transfers and for sup- ‘Saliut’ of Russia. As well as the L-15, it plies of selected components and equips the future Russian combat-capable subsystems for ships and naval aircraft. trainer Yak-130. The L-15 is powered by Ukrainian shipbuilder ‘Black Sea Ship- two reheated engines. At this stage, neither building Yard’ once built the Project 1143.5 Motor-Sich nor MMPP Saliut have an in- heavy aircraft carrier ‘Kuznetsov’ (which is terest in transferring production license for currently operationally deployed with the the AI-222-25F to China. Russian Naval Force) and the same-class On January 19, 2009, the Ukrainian Project 1143.6 aircraft carrier ‘Variag’ MoD’s press office reported the then Min- which was sold to China when 70-percent ister of Defense Yuri Yekhanurov as say- completed. One more such ship, the Proj- ing: “Even though it is the L-39 attack and ect 1143.7 heavy aircraft carrier training aircraft that is operationally de- ‘Ulyanovsk’, which was designed with a ployed with the Ukrainian Armed Forces, nuclear propulsion system and an enlarged the proposal voiced in Beijing looks highly 70-aircraft ship-borne component, was interesting. Here at the Ministry of De- eventually dismantled in a building berth fense, sufficient capabilities exist to do when half-completed. The shipbuilder em- projects of this kind. Now we are going to ploys two dry docks large enough to ac- investigate into technological potentialities commodate heavy carrier-class vessels, of our aircraft repair companies and hold and it has the core expertise and technol- focused negotiations with Chinese repre- ogy required for building them. sentatives with respect to possible produc- In April 1998, Beijing bought from tion of this type of combat-capable Ukraine the heavy aircraft carrier ‘Variag’ airplanes”. The L-15, which comes at a whose ownership came over to Ukraine as price of about $15 million, shall not be con- a result of the Soviet Black Sea Fleet divi- sidered as a rival to the Russian Yak-130, at sion between Kiev and Moscow. The build- least before it becomes clear which of the ing of the ship was brought to a halt in 1992 two aircraft with Ukrainian engines would when it was 67-pct completed, and as such be better selling on the export market. it was sold to the Chinese military for only $28mn. By comparison, same-class current- generation aircraft carrier costs billions to Naval ships and related build. The remarkable ‘feature’ of the deal, equipment and systems as was widely reported at the time, was China’s top-priority program in the that the intent of the firm that initially pro- naval shipbuilding area is an indigenously cured the ship was to renovate and refit it designed aircraft carrier. This program is into a leisure and gambling center. Back noticeable in two aspects. First, even then, many analysts did not preclude the though Beijing has continued with pursu- possibility that the canard reports were
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    333:Layout 1 23.11.2009 4:56 Page 58 Ukraine-China: 50 from Project-to-Project Cooperation to Strategic Partnership willfully distributed to disguise true intent, of that coin is that the U.S. thinking toward specifically to obtain a half-built aircraft China’s effort aimed to build its own air- cruiser for next to nothing. In 2008, the ship craft carrier fleet would certainly be was re-designated as ‘Shi Lang’ after the strongly negative, considering military-po- renowned Chinese military commander, litical stand-off between the two countries which would be out of tradition for a and their rivalries over geopolitical domi- casino. According to numerous media re- nance in the Asian-Pacific region. The level ports, the carrier was planned to be com- of influence the U.S. leaders have on pleted by 2010 and subsequently Ukrainian ones would be sufficient to commissioned with the Chinese Navy. An- make Ukraine give up altogether any hope alysts are almost unanimous in the opinion of supplying propelling plants for Chinese that China’s purchase of the ‘Variag’ car- carriers. rier might be considered to be a latent form China intends to have four medium- of scientific-technical assistance or know- size aircraft carriers in place by 2020, with how transfer that saved Chinese scientists the first-of-class planned to be integrated ten years’ worth of upstream materials into the Chinese Navy by 2016. That ship technology research. is going to be of the same class as the So- Basically, Ukraine’s defense industry viet-era heavy carrier ‘Variag’ with a dis- has the capability to equip all Chinese air- placement in the order of about 65,000 craft carriers with propelling plants (if the tons. Four carrier warfare groups are ex- gas turbine engine type is selected as a final pected to be deployed in the South China option). Mykolayiv-based State-owned Sea and East China Sea to secure maritime company ‘Zoria-Mashproekt’ Research energy corridors and safeguard China’s and Production Complex of Gas Turbine territorial waters there. Building supplied China with a shipment It is worthy of note that a Ukrainian of DA/DN-80 gas turbine engines which trace might be found in China’s effort to have already been installed on four of the build an indigenous carrier-based fighter, Chinese Navy’s Luyang-1/2-class multi- under a program being carried out on a role destroyers. China was reported to parallel track with the indigenous carrier. have bought production license for the According to Western media reports, in DN-80 gas-turbine engine. Here, however, 2006, China purchased from Ukraine a T- some risks have to be considered. Specifi- 10K test aircraft – one of preproduction cally, the building of aircraft carriers for prototypes of the Su-27 carrier-based China should be carried out as a trinational fighter (ancestor of the Su-27/Su-33). No China-Russia-Ukraine program. This prizes for guessing that the purchase might would be impracticable to implement be intended to get into the construction of without Russia as the supplier of some key the aircraft’s folding wing, ruggedized subsystems and components as well as landing gear, arresting hook system and so naval weapons systems. In such a case, if on. Later in 2006, China bought, presum- China opted to tap Russia and Ukraine for ably from the Russian Federation, four sets its aircraft carrier program, one more issue of the Su-33 naval fighter’s tailhook system to be addressed is the character and level to be employed, as the buyer put it, ‘for ex- of military-technical cooperation between perimentation purposes’. The Su-33’s tail- the latter two, which has shown a strong hook system supply package also downward trend recently. The other side comprised a set of deck take-off/landing
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    333:Layout 1 23.11.2009 4:56 Page 59 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 51 equipment, including four sets of cross- Carrier’ Project. In that event, leasing deck arresting gear, aircraft arresting net Ukraine’s NITKA is supposed to be a tran- systems and other equipment. sitional tactic, waiting for the completion This all is closely interrelated with of China’s own NITKA. Before this, China China’s interest in co-operating with may lease NITKA for a short period of time Ukraine on the lease of its naval ship-borne to have early phase computerized simula- pilot training center NITKA located at the tion flight or land-based taking-off and Crimea Peninsula. At present, the Russian landing training of its naval aviation pilots. shipborne aviation force is leasing NITKA Such training usually takes six months. until 2011. The Chinese party has an inter- Consequently, China’s lease of the training est in the naval pilot training center to be center is probably short-term and its in- leased to the People’s Liberation Army vestment in upgrading the training infra- (PLA). The establishment of the Chinese structure at the facility would also be very version of NITKA pilot training center will limited. lag behind the construction of aircraft car- The second scenario is very likely riers, and because of this, the training of pi- China’s leasing the training center pending lots should be pushed ahead first. As a the respective stage of its aircraft carrier de- result, there is the need to send pilots to velopment. When it requires training the Ukraine for training and thus need to lease pilots at different stages, the lease agree- the NITKA training base. This is for one ment could be limited to half a year. The thing. Second, the construction of the Chi- third model is not ruled out, with China nese version NITKA is a very costly and purchasing NITKA’s blueprint and soft- technologically demanding project, and ware or even some of its engineers and also takes a long time. Particularly, this is technicians so as to speed up the construc- supposed to include the take-off and ar- tion of its own NITKA. The Chinese resting systems on the aircraft carrier. NITKA may eventually be built at Hainan Moreover, it also requires the construction Island. of supporting airports, which must be in At this stage, the Russian Navy does costal regions close to the shore. Other es- not want to share this training center with sential facilities include computer-based the Chinese. Ukraine will have to work to- support system. NITKA is in fact a ‘land- gether with Russia on the issue of leasing based aircraft carrier project’ without radar NITKA to China, and Russia will also have or weapons systems. a share of the leasing fee. Without Russia’s For this reason, Russia took more than help, the Chinese naval aviation pilots ten years to discuss the plan of building its would not be able to fully master the take- own aircraft pilot training base and has not off/landing training regulations on Russ- yet initiated the project. The prime concern ian-style aircraft carrier even if they arrive is the actual number of shipborne pilots to at NITKA be trained will be limited and the cost is very huge. Several scenarios might be predicted Air-cushion vehicle programs for China’s lease of NITKA training facil- China has invested much effort into ity. Due to the national character, China the development of its Naval Force’s land- would not want to be restricted by any ing craft air-cushion vehicle component. party in the course of its ‘Grand Aircraft Particularly, it has launched practical-im-
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    333:Layout 1 23.11.2009 4:56 Page 60 Ukraine-China: 52 from Project-to-Project Cooperation to Strategic Partnership plementation phase of its program to in- The building of Project 1232.2 small troduce Type 071 large landing platform landing craft air-cushion vehicles ‘Zubr’ is dock (LPD) into service with the PLA becoming a separate area of Ukrainian- Navy. The first-of-class Type 071 was com- Sino military cooperation. In 2008, follow- missioned with the PLA Navy in Novem- ing a series of unsuccessful negotiations ber 2007. The vehicle is propelled by four with the Russian Federation on the pur- gas-turbine engines supplied by Zoria- chase of 10-15 Project 1232.2 ‘Zubrs’, Bei- Mashproekt. With the Type 071 platforms jing entered into negotiations with Kiev. In in place, the PLA Navy will obtain funda- May 2009, Ukrainian Minister of Industrial mentally new capabilities to be initially de- Policy announced that the PLA Navy is ployed for possible offensive operations to going to award Ukraine a contract to sup- seize Taiwan and, afterwards, for future ply four Project 1232.2 landing air-cushion operations elsewhere in the World’s oceans vehicles to be built by Feodosia’s FSK and seas. The Type 071 is designed to be- ‘Morye’. Jane’s Defence Weekly estimated come PLA Navy’s core landing compo- the cost of the future deal at $315mn, and nent. According to the Type 071 LPD’s additionally reported that the contract official description, its sealift capability is award was signed in Kiev by visiting enough to carry a battalion-size marine deputy Chairman of the National Commit- corps unit, including 500-800 troops, 15-20 tee of the Chinese People's Political Con- amphibious armored vehicles and four sultative Conference on July 2, 2009. Other landing craft air-cushion (LCAC) vehicles. reports have it that the two parties are in The Type 071 LPD Program sub- the final stage of signing the contract which sumes the development of an indigenous is not advertised, simply by virtue of a va- LCAC vehicle design based, according to riety of subjective and objective factors various reports, on a same-class U.S. de- such as resistance on the part of some Russ- sign or the renowned Soviet-developed ian businesses. landing air-cushion vehicle ‘Zubr’ that is In Ukraine’s case, the contract is valu- currently being manufactured in Ukraine able in terms of the number of companies and Russia. The ‘Zubr’ class of LCAC ve- to be tapped for subcontracted works, in- hicles is intended for autonomous opera- cluding seven potential subcontractors at tion to project amphibious assault assets to the Crimea Peninsula alone. In addition, the designated battlefield. Conceptually, it Beijing’s $3mn worth of initial investment was designed for roles such as rapid beach- under the contract would allow FSK head seizure in the Black Sea and Baltic Sea ‘Morye’ to settle its debts. Of the four vehi- regions. The ‘Zubr’ might be of interest to cles contacted, two will supposedly be China in that its capabilities allow it to be built in Ukraine and another two in China, deployed as a frontline attack component under the supervision and with assistance to support possible marine assault opera- of Ukrainian engineers and technicians. tions in Taiwan. Zubr’s primary role there Lessons to be learnt from the experience could be the seizure of forward beachheads with building air-cushion vehicles at its and support of lodgement expansion as own yards would enable China to subse- follow-on forces arrive on Type 071 LPD quently series produce this type of landing platforms. This means a chance for Ukrain- assets in quantities that might be required ian defense companies to receive lump-sum by the PLA Navy. Even if this is the case, orders that they so drastically need today. China would not be able to replicate in full
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    333:Layout 1 23.11.2009 4:56 Page 61 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 53 all the production technology involved, potential cooperation area relates to the and therefore it will have to purchase some Karakorum-8 (K-8/JL-8) basic jet trainer parts and components from foreign sup- aircraft developed as a bilateral project be- pliers (in Ukraine and Russia). Given the tween China and Pakistan. The K-8/JL-8 PLA’s requirement for assets of this kind, design allows for three choices of engines: there should be an expectation of substan- U.S., indigenous Chinese or Ukrainian. tial Chinese orders for ‘Zubr’ ACV compo- China’s initial choice was the U.S.-deigned nents and subsystems supplies. TFE731-2A turbofan engine. But the U.S.- led sanction against China forced it to Naval and aircraft engines switch to the Ukrainian Motor-Sich AI- China’s cooperation with Zoria- 25TLK turbofan and, eventually, to the Mashproekt holds promise for projects be- Chinese indigenous WS-11 (licensed copy yond the ‘Grand Aircraft Carrier’ program. of the Ukrainian AI-25TLK). Some media sources reported that in mid- As well as aircraft and gas-turbine en- 2009, Zoria was awarded a $55mn contract gines designed for integration with the mil- to supply four gas turbine propulsion sys- itary equipment types being developed to tems to the PLA Navy. Ukrainian gas-tur- meet the PLA’s requirement under joint bine engine designs might replace projects with third countries, Ukraine is technically obsolescent KVG-4 steam supplying China with AFV engines as well. boiler/turbine propulsion systems, and, Pakistan’s military, after taking the deliv- also, could comprise the core of the propul- ery of a shipment of T-80UD tanks from sion-machinery plant on the non-nuclear Ukraine, continued with the development cruiser being developed in China around effort for its indigenous Al-Khalid main the Soviet-vintage Type 1143.5 cruiser de- battle tank. The Al-Khalid is a design de- sign. Moreover, Beijing is examining the rived from the Chinese ‘Type T-85’ which prospect of its Russian-supplied Sovre- had been series manufactured in Pakistan menny-class destroyers to be repaired in until it ceased to meet modern standards. Ukraine. PLA’s Navy operates two Type The Al-Khalid required an engine with an 956-E destroyers and as many Type 956- output of 1,200hp which China did not EM destroyers. What attracts China most manufacture. Therefore, a foreign-de- in the prospect of having its naval ships re- signed 1,200hp diesel was to be selected. paired in Ukraine is a relatively low cost of The final choice was made in favor of a high quality repair services. On the other Ukrainian engine and gear box, and hand, there may as well be an interest in Ukraine, represented by trading firm obtaining technical documentation re- ‘Progress’, was awarded a contract to sup- quired to organize repairs of naval ships ply the tank’s most sophisticated subsys- and shipboard weapons systems in China. tem to Pakistan. The Malyshev Plant, based In the aircraft engine sector, there is in Kharkiv, delivered to Pakistan 15 engine an intensive work going on with China fo- and gear boxes for integration with the Al- cused on building up aero-engine repair Khalid during 2001. Work started in the capabilities. This direction of joint work summer of 2002 on a follow-on three-year with the PRC may hold a promise of sig- $100mn contract to supply 285 engine and nificant orders, given potential capacity of gear boxes for upgrading other AFV types the market for fixed-wing aircraft and ro- already operated by Pakistan’s Armed torcraft with Ukrainian engines. One more Forces.
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    333:Layout 1 23.11.2009 4:56 Page 62 Ukraine-China: 54 from Project-to-Project Cooperation to Strategic Partnership Missile systems China has also demonstrated great China was purchasing air-launched progress with developing and building in- missiles from Ukraine and Russia during digenous surface-to-air missile (SAM) de- several years. In 2005/2006 alone, Ukraine signs. The HQ-9 SAM system (Chinese supplied 953 (363+590) R-27 medium- copy of the Soviet-designed S-300), which range airborne missiles to China. In can defeat targets at ranges in excess of 100 2007/2008, China did not buy R-27 mis- km, employs a Chinese indigenous guided siles, which might be indicative of two SAM missile derived from the things. First, China has already acquired Soviet/Russian-developed 5V55. The HQ- enough missiles of this type to meet the 9 is operationally deployed with the PLA PLAAF requirement and, second, it has Air Defense Force and it is currently com- technologically resolved the task of estab- peting in a Turkish long-range SAM tender lishing indigenous production of the mis- along with Russia’s S-400 and U.S. Patriot. sile design at its own factories. It’s worth It could be said with a high degree of cer- mentioning now in this context that China tainty that it is China who is going to pro- has already demonstrated an indigenous vide the toughest competition to Russia on active radar beyond-visual-range (BVR) the long-range SAM markets where the air-to-air missile design, the Ramjet SD-10. supply of U.S. ‘Patriot’ SAM systems is im- This has certain engineering design and possible for political reasons. In the construction features revealing a similarity medium and long term, China might be of to same-class missile designs by Russian interest to Ukraine as a potential coopera- designer company KB ‘Vympel’ which, tion partner in bringing up to modern stan- along with Scientific Research Institute dards UAF’s SAM assets, notably in the AGAT, assisted in Chinese air-to-air mis- aspects where real alternatives to Russian sile developments. The SD-10 has extra proposals might be required. four fore-mounted control fins on its ex- As is the case with upgrading and life- tended nose body, making it outwardly extension of the UAF fighter fleet, Ukraine very similar to the R-27/AA-10. The ramjet has experienced the same difficulties with motor’s two rectangular inlets bear a upgrading its air defense weapons arsenal, strong resemblance of inlets on the RVV- specifically S-300-series SAM systems. AE-PD/R-77M-PD missile – a design that Ukraine has since 1993 persistently pro- was left without Russian Government posed that Russia should assist in upgrad- funding but was probably employed with ing to modern standards and extending great effect by Chinese missile design en- operational life of the UAF’s SAM weapons gineers. inventory. To date, agreements have been The Ukrainian Air Force (UAF) has a reached with Russia on a very limited num- requirement for long-range air-launched ber а projects. In 2003, a joint project was missiles, in conformity with its ‘au- completed to extend operational life of the tonomous defense’ concept. This require- UAF’s 5V55R and S-300P SAM system in- ment might be fulfilled, among other ventories from 10 to 15 years. The core of options, through speeding up the pace of Ukraine’s surface-to-air missile shield is indigenous long-range AAM design effort, comprised by Soviet-era S-300PT and S- or direct acquisitions from or development 300PS SAM systems manufactured back in and production of BVR missile designs the mid-1990s and providing effective en- jointly with China. gagement ranges limited to 75 km. Newer
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    333:Layout 1 23.11.2009 4:56 Page 63 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 55 and mode capable S-300-series versions had program for its satellite navigation and po- never reached Ukraine, unlike China whom sitioning system GLONASS, which was Russia was supplying with the S-300PMU-1 originally planned to be restored to fully and S-300PMU-2 configurations. deployed status (i.e. 24 satellites in orbit In this context, mention should be and continuous global coverage) by 2010, made of the development effort being car- may not be completed at the time as sched- ried out in Ukraine for indigenous SAM uled due to some unforeseen difficulties, designs enabling air targets to be defeated and the European Union’s Galileo satellite from extended ranges of up to 300 kilome- navigation constellation may not be fully ters. Ukrainian developers of the indige- deployed by 2013 as planned, as well. Both nous ‘Sapsan’ SAM design already GLONASS and planned Galileo systems announced that design and development have been developed as alternative and work for the tactical-operational air de- complementary to the United States’ fense missile system would be pursued Global Positioning System (GPS). without Russia’s assistance. This an- nouncement was made even before it be- Defense electronics came clear what kind of difficulties may In a pretty rich history of Ukrain- potentially emerge in developing this new ian-Sino military cooperation, a separate precision-guided SAM design. The issues place belongs to the ‘Kolchuga’ passive identified could be resolved using China’s electronic monitoring radar system, a expertise and practical work experiences in unique-of-its kind design by the Donetsk this field. When Turkey failed to obtain TOPAZ State Joint-Stock Holding Com- production license for the U.S. Multiple pany. China was the second export cus- Launch Rocket System M-270 MPRS, tomer for the Ukrainian ‘Kolchuga’ radar Ankara proposed partnership to Beijing. system after Ethiopia, and ‘Kolchuga’ is As a result, Turkish Roketsan is series man- the first and almost the only fully-inte- ufacturing for the Turkish Army tactical grated system to have been exported by SAM weapons ‘Yildirim I’ with a range of Ukraine to China’s defense market to 150 km and ‘Yildirim II’ (300 km) designed date. In this respect, given China’s ambi- around the China Aerospace Science and tion and the ability to get ‘domesticated’ Industry Corporation’s (CASIC) solid fuel everything up to sophisticated high-tech missile B-611. weapons systems into indigenous de- Of particular interest to Ukraine signs, we would be so bold as to describe might be projects relating to access to the the 2002 export deal for four Kolchugas navigation signal of China’s future Biedou as being a genuine ‘breakthrough’. For Satellite Navigation and Positioning Sys- 2002, TOPAZ reported a net profit that tem that is slated to become fully opera- was more than five times the respective tional by 2015 with 35 satellites in orbit. At figure for the previous year, thanks in no this stage, China has five-satellite Beidou small part to the Chinese contract. It constellation deployed in orbit, which is could be predicted with a high degree of experimental and has limited coverage and certainty that four Kolchugas will be far application. The Biedou constellation of from enough to satisfy China’s require- navigation and positioning satellites will ment for surveillance assets in this cate- eventually comprise 35 satellites offering gory. What probably prevented complete coverage of the globe. Russia’s relationships with China on passive elec-
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    333:Layout 1 23.11.2009 4:56 Page 64 Ukraine-China: 56 from Project-to-Project Cooperation to Strategic Partnership tronic monitoring radar designs (and ahead of all other rival designs existing other po tentially promising projects) elsewhere in the world, including the from achieving the desired level of de- U.S. Considerable headway in this field velopment was the notorious ‘Kolchuga has now been made in Russia, still its de- scandal’ and resulting consequences on signs are no competitors to the Kolchuga the 2002 deal with China. in terms of performance and operational In addition to Ukraine, China took effectiveness. For this reason, the its beating as well, being accused, indi- ‘Kolchuga’ chapter in Ukrainian-Sino re- rectly or sometimes directly, of having lationships should not be closed alto- re-exported the systems to Iraq. The PRC gether. Foreign Ministry even had to officially deny China being involved with alleged Cooperation in space Ukrainian supplies of advanced ESM technologies (electronic support measures) systems Bilateral co-operation in this field is ‘Kolchuga’ to Iraq. The accusations focused on projects concerned with the against China were catalyzed by U.S. following: and UK’s allegations that the deal was – Information swapping on techni- assisted by an undisclosed intermediary cal parameters of the Chinese ‘Environ- country. American and British experts ment-1-B’ and Ukrainian ‘Sich-2’ projects doubted the credibility of Kiev’s asser- with the goal of forging mutually bene- tion that China was the intended recipi- ficial co-operation in the exchange of ent of the four Kolchuga systems. data obtained from space-based assets; Persistent demands that Ukraine dis- – The supply of a laboratory instal- close the details of the Kolchuga deal lation (together with related production with China did not, to say the least, fa- license) required to set up production of cilitate further relationships growth with spacecraft ion plasma thrusters in China; the U.S, as Ukraine was not in a position – Forging mutually beneficial coop- to reveal data containing commercial eration on interrelating and complemen- and government secrets of a foreign tary IONOSAT Project of Ukraine and country. China’s Seismo-Electromagnetic Satellite If the Chinese would successfully Project. establish commercial level production of technologies such as the ‘Kolchuga’, there is no doubt they will develop (and Specialist training programs sell to whatever market they choose) Whilst Ukrainian-Sino military co- their indigenous equivalents, under Chi- operation is mostly focused on exports of nese brand names. This task thus far ex- fully-integrated systems, components ceeds China’s ability, because the and subsystems, services and technol- greatest challenge here is not copying ogy, it also encompasses a variety of the equipment as such but, rather, com- training programs for Chinese military prehending its operational algorithm. technology specialists. A few dozen jun- Ukrainian third-generation passive ior, middle and senior-ranking PLA offi- radar designs, along with those devel- cers, together with several Chinese oped in the Czech Republic, are streets college professors, took training course
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    333:Layout 1 23.11.2009 4:56 Page 65 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 57 at Kharkiv’s I.Kozhedub Air Force Uni- trol of missile forces and artillery”. Fur- versity’s Department of Command and thermore, Chinese engineers and techni- Control Computer Systems (C2CS) and cians are undergoing training under Aviation Ground Support Equipment. A specialist training programs offered by team of PLA Missile Force officers took military aircraft and naval ship repair a refresher training course in “utilization companies in Ukraine. of C2CS systems in command and con-
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    chepter2:Layout 1 23.11.2009 5:05 Page 67 Ukraine-China: 58 from Project-to-Project Cooperation to Strategic Partnership Fifth chapter China’s military parade as a mirror of its global ambitions B eijing, on October 1, 2009, saw deniable, there is some doubt as to whether a military parade celebrating they are truly ‘latest-generation indige- China’s 60th Anniversary na- nous’ Chinese designs. Let us look and see tional day. To provide an in- what exactly these terms imply in this par- sight into modern China’s ticular context. Ten aircraft types and two global ambitions, below we offer a retro- helicopter types participated in the Octo- spective look at the aerial vehicle types, ber 1 flypast show. Their specifications are most particularly the PLA Air Force’s fixed presented in the table below. wing aircraft and helicopters that flew over The availability of a fleet of airborne Beijing in a show of force, complementing early warning and control (AEW&C) plat- an Army vehicle parade. Twelve air eche- forms is a sine qua non of any modern air lons comprising a total of 151 fixed wing force. It’s no coincidence that aircraft with aircraft and helicopters participated in this precisely this application were the ones to lavish show. These air echelons included: open the Beijing’s flypast show. These 1 — 1 KJ-2000 AWACS aircraft; 8 J-7G were one KJ-2000 and two KJ-200 AEW&C fighters; aircraft. 2 — 2 KJ-200 AWACS aircraft; 6 J-11 KJ-2000. The KongJing-2000 (KJ-2000) fighters; is the first airborne warning and control 3 — 9 H-6H bombers; system (AWACS) in service with the PLA 4 — 2 H-6U aerial refueling tankers; 2 J- Air Force (PLAAF), with four examples 10 fighters; 2 J-8F fighters; commissioned between 2006~07. The air- 5 — 15 JH-7A fighter bombers; craft is based on the airframe of the Russ- 6 — 16 J-8F fighters; ian-made A-50/IL-76MD, but outfitted 7 — 15 J-10 fighters; with a Chinese indigenous electronically 8 — 12 J-11 fighters; steered phased-array (ESA) radar that is 9 — 10 Z-8K search and rescue (SAR) less capable than the Russian alternative helicopters; ‘Shmel’ seen on the A-50. The KJ-2000 has 10 — 18 WZ-9A attack helicopters with five flight crew and possibly 10~15 mission anti-helicopter weapons; crew. The aircraft carries out patrol mis- 11 — 18 WZ-9A attack helicopters with sions at an altitude of 5,000~10,000m. The ant-tank weapons; maximum flight range of the aircraft is 12 — 15 JL-8 trainer aircraft. 5,000km and the flight endurance is 7 Official comments during the parade hours 40 minutes. At a range of 2,000km described the participating aerial vehicles and patrolling speed of 600 kmph, the air- as latest-generation designs developed and craft can remain on patrol for up to 1 hour built in China. If their Chinese make is un- 25 minutes. The primary radar system
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    chepter2:Layout 1 23.11.2009 5:05 Page 68 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 59 housed in a radome is a three-sided elec- vide a 360 degree coverage. The Chinese- tronically steered phased-array (ESA) de- made radar system could be similar in de- veloped by Nanjing-based 14 institute. sign to the IAI Phalcon, but may not be as Unlike the Russian A-50 or U.S. E-3, which capable as the latter. The Phalcon system rotate their rotodomes to give a 360 degree could track up to 60~100 targets at the coverage, the KJ-2000's radar antenna does same time and guide a dozen fighters in not rotate. Instead, three ESA antenna all-weather, day and night operations. The modules are placed in a triangular config- KJ-2000 has an aerial refueling capability uration inside the round radome to pro- with a nose-mounted refueling probe. Fixed wing and helicopter types showed off during the 60th Anniversary Parade Designa- J-7G J-8F J-10 J-11 H-6H FH-7A tion year of service 2004 2003 2004 1998 2002 2004 entry crew 1 1 1 1 4 2 engine (number/ty 1xWP-13F 2xWP 13BII 1xAL-31FN 2xAL-31FN 2xWP-8 2xWS-9 pe) thrust/with afterburn- 4,400/6,700 4,800/7,000 7,770/12,500 7,770/12,500 9 500 5,600/9,300 ing, kg max flying speed, 2 450 2 300 2 450 2 500 1 014 1 810 kmph max flying 2 200 2 200 3 400 4 000 6 000 3 650 range, km operational 850 800 1 310 1 500 1 800 1 650 radius, km operational 18 800 20 000 18 000 20 000 13 000 16 000 ceiling, m wingspan, 8 9 9 15 34 13 m
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    chepter2:Layout 1 23.11.2009 5:05 Page 69 Ukraine-China: 60 from Project-to-Project Cooperation to Strategic Partnership Designa- J-7G J-8F J-10 J-11 H-6H FH-7A tion length, m 15 22 15 22 35 22 max 9 19 19 33 76 29 weight, t combat 2 4,50 4,50 6,00 9,00 6,50 payload, t number of weapon 5 7 11 10 2 11 hardpoints guns 1x30mm 1x30mm 1x23mm 1x30mm none 1x23mm 24x250-kg/ 36x250-kg/ bombs 4x500-kg 12x250-kg 8x250-kg 20x250-kg 8x500-kg 18x500-kg guided - 2 LT-2/LS-6 2 LT-2/LS-6 - - 2-4 LT-2 bombs unguided 55mm/90m 2-4 2-6 2-6 8 (80mm) - - m missile units guided air- 2 YJ-9/ 4 KD-88/ to-surface - 2 Kh-31A - 2 YJ-63 2 YJ-8K 4 YJ-81/91 missiles 2-6xPL- 2-6xPL- guided air- 8/11; 2- 8/11; 2- 2-10xR-73; to-air mis- 2-4xPL-8 6xPL-12; 6xPL-12; - 2xPL-8 2-6xR-27 siles 2-6xR- 2-6xR- 27/77 73/77 external 1x1,400L; 1-3 fuel tanks 1-3x720L none none 2xPL-8 2x800L
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    chepter2:Layout 1 23.11.2009 5:05 Page 70 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 61 Designa- KJ-2000 KJ-200v H-6U JL-8 WZ-9A Z-8K tion year of service 2007 2009 1996 1998 2005 2007 entry crew crew 5+10-15v 2+ 2 2 2 - v engine (number/ 4xD30KP 4xPW-150B 2xWP-8 1xWS-11 2xWZ-8A 3xRT6A-67 type) thrust/with afterburn- 12 000 4,250hp 9 500 1 720 740hp 1,941hp ing, kg flying range, km 5 000 5 620 6 000 2 140 1 000 700 max flying speed, 850 662 1 014 800 315 255 kmph operational - - 1 800 - - - radius,km operational 10 200 10 400 13,00 13 600 6 000 4 700 ceiling, m wingspan, 50,50 38.0 34,2 9.63 11.37 (rotor) 18.9 (rotor) m length, m 46,6 34,02 35 11,6 13,46 23 max 190 65 76 4,33 4,1 13 weight, t
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    chepter2:Layout 1 23.11.2009 5:05 Page 71 Ukraine-China: 62 from Project-to-Project Cooperation to Strategic Partnership Designa- KJ-2000 KJ-200v H-6U JL-8 WZ-9A Z-8K tion combat - - 18.5 (fuel) 1 2 5 payload, t number of weapon - - - 5 2 - hardpoints 2x12.7mm guns - - - 1x23mm machine- - guns bombs - - - 4x250kg - - guided - - - - - - bombs unguided 55-90mm - - - 4 2 - missile units air-to-sur- face guided - - - - 8xHJ-8E - missiles air-to-air guided mis- - - - 2xPL-8 8xTY-90 - siles external - - - 2 - - fuel tanks The KJ-200 is a short-range AEW&C Improvements on Y-8F600 include: a two- aircraft based on a Y-8F600 airframe (vari- man cockpit fitted with modernized avion- ant of the Y-8 transport, Chinese copy of ics including U.S. Honeywell navigation the Soviet-designed An-12). The KJ-200 fea- system; four Pratt and Whitney Canada tures a linear-shape active electronically PW150B turboprop engines with British steered array mounted on top of the fuse- Dodi R-408 six-blade propellers; increased lage. The aircraft is fitted with Western take-off weight and range. It is less capable avionics for improved performance. and less expensive as compared to the
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    chepter2:Layout 1 23.11.2009 5:05 Page 72 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 63 KJ-2000, and could therefore be deployed ers. The J-8F multi-role fighter entered the in less important locations. PLAAF service in 2003, with 20 examples Four fighter types, the J-7G, J-8F, J-10 placed under a single PLAAF air regiment. and J-11 were demonstrated during the fly- The PLAAF currently operates a combined past show. fleet of 254 J-8-series jet fighters. The J-8F The J-7G is a Chinese copy of the So- features a JL-10 radar and WP-13BII en- viet-designed MiG-21F-13/Fishbed-C su- gines. The aircraft is capable of near- personic jet fighter aircraft that has been ground speeds of up to 1,300 kmph and license produced in China since 1967. The climbing speeds of up to 200-240 m/s, and J-7G entered the PLAAF service in 2004, operating within an 800-km radius. The with 24 examples having been delivered to fixed weapon on the J-8II includes a twin- a single PLAAF air regiment. The J-7G is barrel Type 23-III (a copy of the GSh-23L) equipped with an I/J-band KLJ-6E Lieying 23mm cannon with 200 rounds in a ventral (“Falcon”) pulse-Doppler fire-control radar installation. The aircraft has seven hard- and an improved counter-missile ECM points (one under fuselage and six under suite. Propelled by the WP-13F-type en- wings). The center fuselage hardpoint has gine, it has an excellent climbing perform- a GDJ-4 pylon integrated dispenser system, ance capability (195 m/s), enables which can carry up to six 250kg low-drag operation within an 850km radius, and free-fall bombs, or a 1,400 liter drop tank. withstands loads of up to 8g. Weapons The under-wing hardpoints can carry up to complement for the J-7G includes a 30-mm six air-to-air missiles in various configura- Type 30-1 gun plus up to 4 guided PL-8 air- tions (Chinese PL-8/11/12 or Russian R- to-air missiles on four outer pylons, or, al- 27/77) or six unguided 55/90mm rocket ternatively, a 2t (4x500kg) bomb load, or up pods, or as many 250kg free-fall bombs. to 4 unguided 55/90-mm rockets. For an The two outboard wing hardpoints are also extended range capability, provisions are pumped to carry two 800 liter drop tanks. made for up to 3 external 720L fuel tanks. Later variants of the fighter are also con- The J-7 series fighters have been with- figured to fire the Russian-made Kh-31A drawn from production, still they comprise anti-ship missile or precision guided the majority of the PLAAF’s fighter fleet weapons such as the LT-2 laser guided (756 of a 1,300-aircraft fleet) and supple- bomb (LGB) or the LS-6 satellite guided ment more capable and expensive counter- bomb. The J-8F could also be fitted with a parts Su-27, Su-30 and J-10. The J-7G is fixed in-flight refueling probe. Although it roughly on a level with the oldest versions has yet approached the capabilities of ad- of production-standard F-16 fighters in vanced fighter aircraft such as the Su-27 or terms of some performance capabilities, es- Su-30, it provides a relatively inexpensive pecially maneuverability. supplement to PLAAF’s existing third-gen- The J-8F is the most recent version of eration fighter fleet. the J-8B fighter jet aircraft developed in The Jian-10 (J-10) is a multirole, all- China from the J-8A fighter interceptor, it- weather fighter aircraft designed for both self an enlarged version of the J-7 fighter air-to-air and air-to-ground missions. The propelled by two WP-7 engines. The JB-8, aircraft was originally intended to be a which entered series production in 1988, is high-performance air-superiority fighter to comparable in performance capabilities to counter the fourth-generation fighters such earlier versions of the F-4 and Su-15 fight- as the Soviet MiG-29 and Su-27, and Tai-
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    chepter2:Layout 1 23.11.2009 5:05 Page 73 Ukraine-China: 64 from Project-to-Project Cooperation to Strategic Partnership wan’s F-16 and Mirage-2000. The develop- drop tank + laser targeting pod. A further ment of the J-10 was reportedly assisted by improved single-seat fighter variant J-10B Israel who provided the technologies of its has been under development. It features a IAI Lavi lightweight fighter, and, in the diffuser supersonic inlet (DSI), a Russian- mid-1990s, by Russia who supplied its AL- style forward looking infrared and laser 31F turbofan jet engine to power the air- target designator pod and an improved craft. In 2004, the fighter was counter-missile ECM capability. commissioned with the PLAAF who cur- The Shenyang J-11 is the Chinese rently operates a fleet of 140 J-10s in five air copy of the Su-27 (NATO reporting name: regiments. The J-10 is equipped with an in- Flanker) air-superiority fighter built under digenous fire-control radar featuring a me- Sukhoi’s license since 1998. The PLAAF op- chanically slewed planar array antenna, erates a 116-aircraft fleet of J-11 in 9 air reg- capable of tracking 10 targets and engag- iments. The J-11 is fitted with the ing 2 (using semi-active radar-homing JL-10-type fire-control radar. Powered by AAM) or 4 (using active radar-homing AL-31FN engines, it provides near-ground AAM) of them simultaneously. Possibly speeds of up to 1,300 km/h and climbing based on Russian or Israeli technologies, speeds of up to 300m/s. It operates within the radar is believed to be comparable to a range of 1,500 km and withstands loads the early 1990s-era Western fighter radar of 9g. Weapons complement includes one designs. The J-10 provides near-ground 30-mm gun GSh-301 plus up to 6 tons of speeds of up to 1,470 km/h and withstands consumable weapons. The aircraft has 10 loads of up to 9g. The fixed armament of external stores stations for weapon car- the J-10 includes an internally-mounted riage, three under each wing and four Type 23-3 twin-barrel 23mm cannon, plus under the fuselage. Consumable weapons up to 4.5 tons of consumable weapons. The include R-73, R-27 and R-27ET/ER AAMs, aircraft has 11 external stores stations for 250-kg and 500-kg bombs, unguided rock- weapon carriage, three under each wing ets B-8V1 (20 80mm rockets in each rocket and five under the fuselage. The J-10 could pod). In its air superiority role, it typically carry a mix of medium-range air-to-air carries up to ten AAMs (up to four R-73s missiles (MRAAM), short-range air-to-air plus up to six R-27s). Other air-to-air com- missiles (SRAAM) and drop tanks. Typical bat configurations include ten R-73s, or air-superiority and interception weapon two R-27ERs or six R-27ETs. For ground at- configurations are: 4xPL-11/12 MRAAM + tack roles, it an carry 24x250kg bombs, or 2xPL-8 SRAAM + 1x800ltr drop tank, or 8x500kg bombs, or up to six unguided 2xPL-11/12 MRAAM + 2xPL-8 SRAAM + rocket pods. The J-11, however, is not con- 2x1600ltr drop tanks + 1x800ltr drop tank. figured to carry guided bombs or missiles, In a typical surface attack mission, the or Chinese-made weapons. fighter carries up to eight 250kg bombs, China has developed an improved along with two drop tanks and two PL-8/9 version of the J-11 designated J-11B with SRAAMs. Typical surface attack and inter- much greater Chinese-made content. Mod- diction weapon configurations for the J-10 ifications on the J-11B include an indige- are: 2xPL-8 SRAAMs + 6x250kg LDGP nous multifunctional pulse-Doppler bombs + 2x1,600ltr drop tanks + 1x800ltr fire-control radar reportedly capable of drop tank, or 2xPL-8 SRAAMs + 2x500kg tracking 6~8 targets and engaging 4 of LGB + 2x1,600ltr drop tanks + 1x800ltr them simultaneously; an indigenous digi-
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    chepter2:Layout 1 23.11.2009 5:05 Page 74 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 65 tal flight-control system; Chinese copy of weapon suites for its 5th-generation fighter the Russian OEPS-27 electro-optic search aircraft. and tracking system; a strapdown H-6H and JH-7A aircraft represented INS/GPS navigation system; a ‘glass’ cock- PLAAF’s fighter bomber component dur- pit featuring four-color multifunctional ing the flypast show. displays (MFD) and a wide-angle holo- The H-6H bomber is the latest pro- graphic head-up display (HUD). The air- duction-standard version of the Soviet-de- craft could carry the Chinese-made PL-8 signed strategic medium bomber Tu-16 IR-homing SRAAM and PL-12 active Badger that was series produced in China radar-homing MRAAM for air-to-air com- under a Russian license since 1968. The bat. It is expected to have enhanced air-to- basic version, H-6A, was designed as a nu- surface attack capabilities with the clear bomb carrier. In 1985, the PLA Navy indigenous precision strike ammunitions commissioned the H-6D missile bomber such as LT-2 laser-guided bomb, the LS-6 armed with two YJ-61 anti-ship missiles, satellite-guided glide bomb, the YJ-91 (Chi- and seven years later, in 2002, the H-6H nese copy of the Russian Kh-31P) anti-ra- bomber entered service with the PLAAF diation missile, and the TV-guided KD-88 which currently has an inventory of 70 H- air-to-surface missile. The J-11B is config- 6-series bombers in seven air regiments. ured for the Chinese indigenous 7.5t (11.2t The H-6H is powered by twoWP-8 turbo- with afterburning) thrust engine FWS-10A jets (Chinese indigenous copy of a Russian (less capable copy of the Russian AL- equivalent), enabling cruising speeds of 31FN). 850 km/h and a flying range of 6,000 kilo- China is believed to have been con- meters with a 6t payload. It carries two ducting preliminary research on its fifth- subsonic highly maneuverable YJ-63 cruise generation fighter aircraft J-XX. The fighter missiles with a range of 200 km and a 500- is described as an advanced F-22-class kg warhead, or, alternatively, a 9t bomb twin-engine stealth fighter with extensive load (various mixes of 250, 500, 1,500, and radar cross section (RCS) reduction fea- 3,000kg bombs). After China failed to ac- tures such as internal weapon bay. The two quire the Tu-23M3 strategic bomber as a primary fighter aircraft design institutes of successor to the now outdated H-6H, it the China Aviation Industries Corporation launched the development of its upgraded (AVIC) – Shenyang Aircraft Design Insti- versions H-6M and H-6K. The latter fea- tute (601 Institute) and Chengdu Aircraft tures some radical modifications, including Design Institute (611 Institute) – have both six under-wing pylons to carry as many been working on their own designs to bid new land-attack CJ-10A extended-range for the PLA’s contract. In such a case, 611 (up to 1,500km) cruise missiles; two Russ- Institute has worked on own advanced ian-made D-30KP 12-t thrust turbofan en- fighter aircraft design, possibly based on gines (these engines would provide the the design and technology of its J-10 new H-6K with increased weapon payload fighter. The Chinese fifth-generation and extended range); a current-generation fighter will feature very low RCS, provide radar; and a completely refurnished ‘glass’ excellent maneuverability and a supersonic cockpit featuring six large multifunctional cruising speed capability. China may also displays. The H-6M features four large py- seek potential partners from Russia, Israel lons fitted under the wings to carry four YJ- and Europe to co-develop avionics and 81 anti-ship missiles. If necessary, the
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    chepter2:Layout 1 23.11.2009 5:05 Page 75 Ukraine-China: 66 from Project-to-Project Cooperation to Strategic Partnership bomber may also be able to carry the KD- could be extended to 2,600km with one re- 88 land-attack cruise missile for precision fueling, or 3,500km with another. The Su- strike role. 33MKK carries latest-generation systems The JH-7A is the latest version of the and a weapons load increased to 8 tons, in- basic JH-7 fighter bomber design that has cluding active radar-homing medium- been in PLAAF service since 1992. The JH- range air-to-air missiles R-77/AA-12 7A was first delivered to the PLA Naval Adder, Kh-59ME air-to-surface missiles, Aviation in early 2004, followed by the de- Kh-31 anti-ship cruise missiles, Kh-31P livery to the PLAAF in late 2004. There are anti-radiation missiles and TV-guided currently three JH-7/A regiments in the KAB-500Kp glide bombs. PLA Naval Aviation, and a JH-7A regi- The H-6U aerial refueling tanker air- ment in the PLAAF, totaling some 70 ex- craft was developed from the H-6 twin-en- amples. The JH-7 is an all-weather, gine jet bomber and was accepted into the two-seat, twin-engine fighter-bomber in PLAAF service in 1996, when PLAAF was the same class as the European Tornado required to expand its reach to China’s pe- IDS and Russian Sukhoi Su-24 Fencer. It is ripheral regions, such as the South China equipped with the JL-10A multi-functional Sea and Taiwan Strait. To achieve this tar- pulse-Doppler radar and powered by two get, the PLAAF was desperate in need for WS-9 Qingling turbofans (a Chinese li- an aerial refueling capability that could ex- censed copy of the British Mk202). The air- tend the radius of its combat aircraft. The craft enables near-ground maneuvering at navy version is designated H-6DU. It ap- 1,210 km/h, and operates within a range of pears to be converted from existing H-6D 1,650 km. The JH-7A is fitted with a twin- anti-ship missile bomber. A total of 12~20 barrel Type 23-III (a copy of the GSh-23L) examples of the H-6U are believed to have 23mm cannon. Up to 5,000kg weapon been built so far. China was reported to loads and/or drop tanks can be carried on have obtained some Western-made aerial eleven external hardpoints (six under refueling equipment which was later used wings, two on wingtips and 3 under fuse- as a pattern for developing China’s own in- lage). The variant would carry four YJ-81 digenous design. The H-6 tanker carries 37 subsonic sea-skimming anti-ship missiles tons of aviation fuel inside its tanks, and two PL-8 IR-homing SRAAMs, plus a enough to refuel six J-8D-type fighters to 1,400L drop tank. For surface attack mis- extend their radius to 1,200 km from 800 sions, the JH-7A could carry up to twenty km. Its refueling system is compatible with 250kg low-drag general-purpose, or TV- the J-10 and JH-7 fighter aircraft but does guided KD-88 air-to-surface missiles, or not match to the Su-30MKK for which LT-2 laser guided bombs, or YJ-91 anti-ra- China has ordered eight Russian Il-78 diation missiles. tankers. The H-6U can transfer 18.5 tons of The most capable combat aircraft in fuel to the fighter aircraft. Its refueling sys- service with the PLA, the Russian-supplied tem consists if two RDC-1 refueling pods, Su-30MKK multi-role fighter bomber air- allowing two fighter aircraft to be refueled craft was not on view at the parade. The at the same time. Su-30MKK approaches the U.S. F-15E The JL-8 basic jet trainer aircraft was Strike Eagle in terms of performance and jointly developed by the PRC and Pakistan capability. It has an impressive combat ra- in the 1990s as a successor to the Cessna T- dius of 1,600km without refueling, which 37 jet trainers in the Pakistani Air Force
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    chepter2:Layout 1 23.11.2009 5:05 Page 76 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 67 service. The aircraft is powered by the electronic countermeasures (ECM) suite Ukrainian 1.7t thrust AI-25TL turbofan (or consists of radar warning receiver (RWR), its Chinese copy WS-11). In its ground at- laser warning receiver, infrared jammer tack configuration, there are four under- and chaff/flare decoy dispenser. The heli- wing pylons to carry up to 1,000kg copter is thought to be fitted with a ‘fly-by- payload, each rated at 250kg. The stations wire‘ (FBW) control system, and a modern can carry drop tanks, 23mm cannon pods, glass cockpit with multifunctional display unguided rockets, 250kg bombs or two PL- (MFD) screens. The helicopter is fitted with 8-type short-range air-to-air missiles. Rus- a 30mm cannon mounted under the nose, sia reportedly assisted the PLAAF to build this being controlled from the pilot’s hel- the more capable JL-15 (a copy of its Yak- met-mounted sight. A new-generation 130 trainer jet) powered by Ukrainian AL- anti-tank guided missile (ATGM) HJ-10 is 222K-25F motors. currently in development. The missile is The PLAAF’s helicopter component thought to be comparable to the U.S. AGM- was represented by the WZ-9A and Z-8K 114 Hellfire. The helicopter can carry up to rotorcraft, which both are variants of Chi- eight such missiles under the stub wings nese copies of the French-designed for anti-armor role. Alternatively, the heli- AS365N and SA321J choppers, respec- copter can carry unguided rocket pods for tively. ground attack, or TY-90 short-range air-to- The WZ-9A is the most recent and ca- air missiles for air combat. The Z-10 proto- pable member of the WZ-9 family of attack type is powered by two Pratt & Whitney helicopters, introduced into the PLAAF Canada PT6C-67C turboshaft engines of service in 2005. It is powered by two WZ- which ten have been procured by China for 8A turboshafts (a copy of the French Arriel its Z-10 program. The WZ-9A with Chinese IC1), and features a nose-mounted indigenous engine WZ-9 is rapidly ap- day/night sighting pod. The helicopter has proaching full-scale series production ma- two weapon pylons to carry 4 (or 8 on the turity. Z-9WA) HJ-8 wire-guided anti-tank mis- The PLA Air Force introduced the Z- siles. Alternatively, the helicopter can carry 8K as a dedicated search and rescue (SAR) two 12.7mm machine gun pods, or two helicopter in 2007. It is powered by three 57mm or 90mm unguided rocket pods, or Pratt & Whitney Canada PT6A-67B tur- four TY-90 IR-homing air-to-air missiles boshaft engines. The Z-8K has a hoist with (6km range). winch and scoop fitted externally above The dedicated attack helicopter WZ- the starboard side cabin door for rescue 10 is being developed as a successor to the missions. For transport missions, the heli- WZ-9A, and it is thought to be in the same copter can carry 27 armed soldiers, or 15 class as the Agusta A-129 and Tiger. Eight patient litters and a medical staff, or prototypes have been built and now un- 5,000kg cargo externally on sling. dergoing test and evaluation. An observa- The most capable combat helicopters tion unit consisting of a forward looking in service with the PLA Air Force, the infrared (FLIR), a low-light television and a Russian-supplied Mi-171 and Mi-17V-5/7 laser rangefinder/designator mounted on were not to be seen during the parade. a steerable platform at the nose of the heli- Intuitively enough, the fixed wing air- copter. All the critical systems on the heli- craft and helicopter examples demon- copter have armor protection. The strated during the 60th national day
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    chepter2:Layout 1 23.11.2009 5:05 Page 77 Ukraine-China: 68 from Project-to-Project Cooperation to Strategic Partnership military parade in Beijing more reflect ac- transports (or their reverse engineered complishments by the Chinese aeronauti- copies), the H-6H bomber and H-6U aerial cal research and design community than refueling tanker are modified licensed the current status of the PLAAF’s fleet. In copies of the Tupolev Tu-16, the J-7G actual fact, however, the PLAAF’s fleet is fighter is a redesigned Chinese copy of the to a large degree obsolete and worn-out. Soviet-era MiG-21F-13/Fishbed-C super- Especially, its 1300-aircraft fighter fleet sonic jet fighter, the J-11 is a licensed copy only comprises 300 examples of the rela- of the Cu-27SK, and, finally, the WZ-9A tively current-generation fighter types seen and Z-8K helicopters are variants of Chi- during the October 1 air show (24 J-7Gs, 20 nese copies of the French designs AS365N J-8Fs, 140 J-10s and 116 J-11s). With the 32 and SA321J, respectively. As well as assis- Su-27s, this figure would amount to 332 ex- tance from foreign engineers and licensed amples or 26 percent of the PLAAF’s production in China, direct cloning of for- fighter fleet, the remaining 74 percent eign designs and industrial spying were being technologically obsolete examples of heavily involved in the development of the J-7 and J-8 series. Of the existing fleet of these aerial vehicles. Depreciation of the 550 fighter bombers in the PLAAF service, PLAAF’s fleet and China’s ambition to the JH-7A bombers shown off at the parade have a modern air force equipped with in- only account for 70 examples or 13 percent. digenous current-generation aircraft and With the 73 Su-30MKKs, the fleet of rela- aerial weapons systems, supported by its tively advanced attack aircraft would make growing financial capabilities and the re- 143 examples, or, again 26 percent, the re- fusal by the United States and other devel- maining 74 percent being antiquated by oped nations to provide Beijing with modern standards Q-5C/D ground-attack advanced military technologies and know- fighters. how – this all may well be the rationale be- Of the all 12 fixed wing and rotary hind China’s ‘by all means or foul’ policy. wing aircraft types seen during the na- Such a pragmatic approach would be fully tional day parade, only 4 fixed wing air- justifiable from the perspective of China’s craft, specifically the J-8F, JH-7A, J-10 and top-priority national interests. The USSR, JL-8 could be considered indigenous (to a in its own good time, pursued a similar limited extent, though) Chinese designs. policy of competitive intelligence and di- The J-8F was developed by way of modify- rect copying of foreign aeronautical de- ing and improving, under a Russian li- signs. Especially, the Tu-4 strategic bomber cense, the Soviet-era MiG-21F-13 fighter jet, was developed as a reverse engineered and it was based on the layout of the Soviet copy of the Boeing B-29 bomber. China em- Sukhoi Su-15 Flagon-A fighter. The J-10 ploys a variety of patterns for copying for- was developed around the Israeli IAI ‘Lavi’ eign designs. One demonstrative example experimental fighter with assistance from might be the J-11B, the Chinese clone of the foreign engineers. All the four ‘indigenous’ Russian Su-27SK. In 1995, the Russians Chinese designs involve foreign-supplied agreed in principle to allow the PRC to engines (or their reverse engineered build the Su-27SK single-seat fighter lo- copies), subsystems and weapons. The cally under license. In 1996, Sukhoi Com- other designs are ‘indigenous’ to an even pany (JSC) and SAC entered into a contract lesser extent; the AEW&C aircraft designs for the co-production of 200 Su-27SK fight- were derived from foreign-developed ers as the J-11. Under the terms of the
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    chepter2:Layout 1 23.11.2009 5:05 Page 78 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 69 agreement, Sukhoi/KnAAPO would sup- 8 SRAAM, PL-11/12 MRAAM, CJ-10 ply the aircraft in kit form to be assembled strategic cruise missile, YJ-63 and KD-88 by SAC. It was reported that Russia also air-to-surface missiles, YJ-81 anti-ship mis- agreed to help the PRC gradually increase siles, laser and satellite-guided bombs LT- the proportion of Chinese-made content on 2 and LS-6, and the helicopter-launched the J-11, so that SAC could eventually pro- ATG missile HJ-10. Development effort has duce the aircraft independently. In No- been in progress for the strategic UAV de- vember 2004, however, Russian media sign WZ-2000 that would be similar to the reported that the J-11 production had United States’ Global Hawk, as well as for stopped after about 100 examples were the future fifth-generation J-XX fighter, built. According to the report, the Chinese special-mission WZ-10 attack helicopter, side had requested Sukhoi Company to and the Z-15 multirole helicopter. The de- stop deliveries of the assembly kits. The velopment level of China’s engine building contract had been terminated when half- industry is still lagging behind other sec- completed, and the Chinese copy, the fully tors’, still, this gap has been gradually indigenously built J-11B, eventually had bridged. been brought to the picture. In response to Ukrainian-Sino cooperation in mili- accusations of copyright abuse and breach tary aeronautics has been restricted to sup- of terms of the contract, the Chinese side plies of individual examples, subsystems threatened to refuse awarding further and components, and the transfer/selling highly lucrative contracts. Another exam- of licenses and know-how. Especially this ple is the Kh-55 strategic cruise missile, is about engines (and related production li- which is now being manufactured in China censes) for the JL-8 and JL-15 trainers, mo- under local designation CJ-10A, a few tors for Russian-supplied Mi-171 and years after an amount of such missiles was Mi-17B-5/7 helicopters, maintenance tech- bought by China from Ukraine. The third nology for the AL-31FN engine, R-27/AA- example could be the Ukrainian-supplied 10 Alamo medium-to-long-range air-to-air T-10K experimental aircraft around which missiles, a shipment of Kh-55 cruise mis- a naval fighter is being developed for fu- siles and the experimental aircraft T-10K. ture Chinese aircraft carriers. The Center for Army, Conversion and The PRC has over the past decade Disarmament Studies recently expressed a made major achievements in the develop- suggestion to boost this cooperation, par- ment of its scientific and technological ticularly with regard to co-production of bases, especially with respect of avionics. the JL-15 trainer aircraft (as has already This allowed China to develop and launch been proposed by the PRC) and the possi- domestic production of radar equipment bility of China assisting Ukraine in bring- for AEW&C applications, J-10 and JH-7 ing up to modern standards the UAF’s fighter aircraft, upgraded/modified ver- Su-27 fighter fleet. sions of the J-7, J-8B and H-6 fixed wing air- craft, and Z-8 and WZ-9 helicopters. Additionally, 100-percent Chinese made Conclusions aircraft J-10B and J-11B have been brought First, the October 1 military flypast into being. Also, China has achieved a show in Beijing involved 151 Chinese-built great success in the development of preci- aerial vehicles of 12 types: two AEW&C sion-guided air-launched weapons: the PL- platforms (KJ-2000 and KJ-200), four fight-
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    chepter2:Layout 1 23.11.2009 5:05 Page 79 Ukraine-China: 70 from Project-to-Project Cooperation to Strategic Partnership ers (J-7G, J-8F, J-10 and J-11), two attack air- ters, J-10B and J-11B fighters; precision- craft (H-6H bomber and JH-7A fighter guided air-launched weapons: the PL-8 bomber), one aerial refueling tanker (H- SRAAM, PL-11/12 MRAAM, CJ-10 strate- 6U), one trainer aircraft (JL-8), one combat gic cruise missile, YJ-63 and KD-88 air-to- helicopter (WZ-9A) and one SAR helicop- surface missiles, YJ-81 anti-ship missiles, ter (Z-8K). Of these 12 types, only four laser and satellite-guided bombs LT-2 and could be considered indigenous (to a lim- LS-6, and the helicopter-launched ATG ited extent) Chinese designs. These are the missile HJ-10. Development effort has been J-8F, J-10, JH-7A and JL-8, which, however, in progress for the strategic UAV design include foreign-designed (or reverse engi- WZ-2000, the future fifth-generation J-XX neered) key components such as engines, fighter, special-mission WZ-10 attack heli- selected mission systems and weapons. copter, and the Z-15 multirole helicopter. Other designs are indigenous to an even Third, military-technical cooperation lesser extent; the AEW&C aircraft designs between Ukraine and the PRC in the field are built around a foreign-designed trans- of military aeronautics has been restricted port aircraft or its Chinese copy, the to supplies of individual examples, sub- bomber, aerial tanker and fighters are systems and components, and the selling modified versions of foreign supplied of licenses and know-how (engines for the equivalents, and the helicopters are reverse JL-8 and JL-15 trainers, motors for the engineered copies of foreign-supplied Russian-supplied Mi-171 and Mi-17B-5/7 counterparts. helicopters, R-27/AA-10 Alamo medium- Second, the PRC has over the past to-long-range air-to-air missiles and so on). decade made major achievements in the The Center for Army, Conversion and Dis- development of its scientific and techno- armament Studies recently expressed a logical bases, which allowed it to develop suggestion to boost this cooperation, par- and launch domestic production of the ticularly with regard to co-production of KLJ-2000 and KJ-200 AEW&C aircraft, J-10 the JL-15 trainer aircraft and the possibility and JH-7 fighter aircraft, upgraded/modi- of China assisting Ukraine in the UAF’s Su- fied versions of the J-7, J-8B and H-6 fixed 27 fighter fleet upgrade. wing aircraft, and Z-8 and WZ-9 helicop-
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    CIAKR:Layout 1 23.11.2009 5:11 Page 81 Ukraine-China: from Project-to-Project Cooperation to Strategic Partnership 71 CACDS expert conclusions 1.As geopolitical situation around 4.A characteristic of Chinese leader- Ukraine has been going from bad to worse, ship is that they are disinclined to take fast and given the emergence of fundamentally decision but, rather, tend to thoroughly ex- new threats and challenges, the transition amine and weigh in the balance all the op- from cooperation on a project-by-project tions available before determining an basis to strategic partnership with the Peo- acceptable response. Key factors here, as ple’s Republic of China holds the promise before, are a partner’s consistency and a of huge benefits in terms of politics, econ- high enough level of contacts between omy, military technology and defense se- upper reaches of political establishments, curity, all the more so as there are no not excepting the supreme leaders of the conflicts or points of disaccord in relation- two states. China’s policies towards Pak- ships between Ukraine and the PRC. istan might provide for Ukraine an impor- 2.Being a powerful, independent cen- tant demonstrative example about how ter of influence of global proportions, the problematic geopolitical issues should be PRC, by virtue of its technological and dealt with. By reinforcing Pakistan, China geopolitical ambitions, has an apparent in- thereby weakens India whom it considers terest in Ukraine. Even though the differ- to be its rival in the region. The possibility ence in mentalities between the Ukrainian is not fully ruled out that China’s territo- and Chinese nations remains wide enough, rial ambitions and general geopolitical ex- a sustainable tendency towards a Eu- pectations with regard to the Far East ropeization of China is making this gap might spur Beijing to begin actively rein- somewhat smaller. Furthermore, there is a forcing Ukraine as an anti-Russian center large enough population of Soviet School of influence on the Western front. Many ex- adherents remaining in China, which feeds perts believe that China has already a considerable amount of interest in launched a cautious advance on Russian Ukrainian culture in general and Ukrain- interests. The important positive side to ian universities in particular. Ukraine’s rapprochement with China is 3.The PRC might potentially act as se- that it does not affect or run counter to its curity guarantor for Ukraine. Although rapprochement with Russia. China’s interest in Ukraine is primarily 5.The PRC has already outpaced technological, another aspect of that inter- Ukraine in the development and produc- est is that Kiev never attaches any political tion of some defense technologies, most strings or requirements to joint projects in particularly fighter aircraft, SAM weapons sensitive sectors and, furthermore, Ukraine and tactical/operational missile systems. is a potent potential market for Chinese For Ukraine, building an indigenous multi- goods. The PRC pursues a vigorous yet role short-range missile system is a top-pri- well thought-out, thoroughly balanced and ority challenge in homeland defense consistent foreign policy, and, for this rea- system. Ukrainian designers, while having son, it is very unlikely to agree to provide a history in the field of strategic missile sys- assurances of any kind. tems, do not have any experience in the de-
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    CIAKR:Layout 1 23.11.2009 5:11 Page 82 Ukraine-China: 72 from Project-to-Project Cooperation to Strategic Partnership velopment of tactical/operational missile supplier, exporting high-tech weapons sys- weapons. For this reason, relevant skills tems and items of defense equipment, and and technology transfers with the PRC continuously adding new products and would be quite justifiable and feasible. In- services to its defense export portfolio. Pak- tuitively enough, that issue must be ap- istan, a onetime traditional military-tech- proached with great caution, as some nological cooperation partner of Ukraine, problems may arise here, both in the con- has now preferred China as its closest part- text of limitations stemming from the in- ner, most notably in the tank/AFV and ternational Missile Technology Control ATGW areas of military technology. This Regime (MTCR) and at the level of rela- reflects a more inclusive tendency of tionships with the United States. By the Ukraine to be gradually ousted from its tra- very fact of seeking such an opportunity in ditional markets in Asia and Africa by relations with the PRC, Kiev sends a mes- China, unless a framework for cooperation sage to international community that with China on third-country markets -- Ukraine deserves better attitude on behalf particularly through advancing joint proj- of the key players of global politics who ects – can be established. It, however, must tend to take little if any account of be appreciated that the PRC, in contrast to Ukraine’s vital interests. India, has taken very cautious approach to- 6. Cooperation in military technology wards selecting joint projects with foreign with China would allow Ukraine to build partners. up its defense capacity and technological 8. Further advancement of Ukrain- capabilities by carrying out a range of mu- ian interests in China calls for an intensifi- tually beneficial projects. The PRC has re- cation of bilateral contacts at the top inforced substantially its research and national level. In this particular context, not manufacturing potentialities, thereby en- only is the issue of lobbying for coopera- abling itself to go away from onetime de- tion with China of paramount importance, pendence upon Russia as defense supplier, it also is a critical precondition for and part and, furthermore, to generate alternative and parcel of Ukrainian-Chinese friend- solutions in a number of military technol- ship, providing that there is an intention to ogy areas. Ukraine must create an environ- develop the friendship into strategic part- ment for some of these new Chinese nership. At this point in time, the level of technologies to be employed, on a mutu- contacts between top leaders of the two ally beneficial basis, for Ukrainian Armed countries is apparently insufficient, which Forces re-equipment and re-weaponing in no way facilitates the task of bringing programs as well as for joint projects on the relationships to a strategic level. Iner- third-country markets. tia in relationships between top leaders of 7. The PRC has, year by year, been the two countries is the main impediment evolving into a powerful global defense to progress in Ukrainian-Sino relations.
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    soder_eng:Layout 1 23.11.2009 10:57 Page 1 Contents Introduction. Why China?................................................................................2 First chapter In search of comprehensive guarantees................................5 Second chapter. Place of Ukraine in the China-Ukraine-Russia triangle.............................................13 Third chapter The specifics of China’s policies towards regional markets.......................................................35 Forth chapter Military-Technical Cooperation between Ukraine and China: Directions and Cooperation Patterns.......................................................43 Fifth chapter China’s military parade as a mirror of its global ambitions ...........................................................57 CACDS conclusions.................................................................71