Saturday, September 15, 2012

How a slowdown of Chinese economy may effect PLA

If you have not been following Asia news recently, you may have missed out on the dramatic slow down recently in the Chinese economy. There are many reasons for this slow down. The most obvious of which has been the extreme unbalanced growth model that China has been on in recent year to exports and investments. With Europe, China's biggest export market, in an economic free fall and America also getting into a recession, China's export is unlikely to pick up in the near future. At the same time, we are seeing a collapse in the real estate caused by the bursting of housing bubble. Local governments are saddled with debts from all of the infrastructure projects, so the investment part of Chinese economy is seeing a collapse and this is confirmed by all of the PMI numbers that have come out recently. While Chinese government may push for more stimulus and infrastructure projects to kick start the economy, this is really a great time to start the de-leveraging process and come to a more balanced growth model with increased consumption making up the growth. I'm not sure how long this period will last, but this is all part of the capitalism. You have the boom and bust period. During bust period, the government will hopefully cut back on some programs and reduce the spending. When it comes to PLA, that should point to a lower growth in the defense budget. This happened in 2009 when the defense budget grew at the slowest pace in a long time. And Chinese government has shown in the past that it is willing to divert money from defense to help economic development. The question is how PLA will adjust to smaller increases in its budget. Which programs will it cut? Or which programs should be cut or reduced?

If we look back in the 80s, when PLA saw its budget cut pretty much every year, most of the programs it embarked on were cut or abandoned very early on. When Su-27s were purchased in the early 90s, there were even many who called for abandoning the J-10 program. That's quite amazing considering that J-10 has been described as China's Apollo project by some. At the same time, many naval projects like 052 and nuclear submarines were delayed while the shipyards continue to build low technology ships due to lack of funding, lack of technical expertise and arms embargo. Of course, the PLA build up of the past 20 years were the results of increased funding, technology transfer from Russia and improved civilian industries.

First of all, what should PLA look into slowing down, reducing or cutting if the procurement and RnD budgets are cut by 10 to 20% vs PLA's current projection levels. Suppose the four services of air force, navy, army and second artillery all get cut around that level, I will look at the two areas I'm more familiar with: air force and navy. I will talk about training and personnel cost later.

In the air force, there are programs that must go on like J-20, Y-20, KJ-2000 (or some future variants of it) and Y-8 special missions aircraft. They will receive proper funding for the foreseeable future. There are ongoing programs like J-10 and flankers series that may see cut in funding resulting in early termination of some variants and shelving of some variants. For example, J-10B has been stuck in the test stage for seemingly a long time and looks to finally be ready for induction. If J-20 becomes successful early, PLAAF may choose to shelve future "semi-stealthy" variants of J-10 to save on development cost and continue to produce J-10B while upgrading J-10A with more advanced electronics and weaponry. In the case of the flanker series, PLAAF may terminate J-11B project early due to its bad performances in the recent red flag/blue flag aerial exercises at Dingxin. The J-16 project could also be cut if SAC continues to have problem actually developing new flanker variants to serve PLAAF. And SAC's 5th generation project may loose PLAAF funding if SAC continues to struggle. There are also many UAV and UCAV projects that are under way in China as we've seen in the recent Zhuhai air shows. Many of these projects are privately funded or for export purposes, but we know PLAAF also has requirements of different types of UAVs and UCAVs. PLAAF may delay the purchase of some of the UAVs while going with more mature and less advanced designs. Of course, these are just my personal speculation and the success of many programs depend not only on their performance but also on the political connection of the people involved in the projects. On top of these core PLAAF projects, there are also the less essential ones that may not get chosen or delayed. JF-17 has long been talked about as a project that may provide the lo-end of China's fighter force and I've long advocated PLAAF purchase a variant of it. However, if PLAAF is in a cash crunch and deems JF-17 to be too expensive, it may continue to purchase J-8IIs or cut some of the regiments and restart J-10A production to lower the logistical cost of having another type of fighter jet in service. In the area of advanced jet trainer, PLAAF may completely give up on purchasing the more expensive L-15 project and only purchase the less advanced JJ-9 project. Future variants of JH-7 will probably be left on the drawing board while JH-7A replaces all remaining Q-5 regiments as the workhorse attacking aircraft of PLAAF. Future bomber projects will get pushed back even more while XAC continues to churn out newer variants of the 50s era H-6 bombers. The Y-9 project will probably get enough funding by then to already be in service, but the speculated jet engine powered version of medium transport will probably be abandoned.

In the navy, most of the programs are amazingly efficient due to China's very competitive civilian shipbuilding industry and advancing electronics industry. Off the top my head, I really cannot think of any ship class currently under production that's really badly managed and deserve to get cut. In the beginning part of PLAN's modernization, it was forced to make large leaps in technology and had numerous classes with limited production to eventually get modern warships. You can see that from 052 to 051B to 052B to 052C. In cases where it did make huge leap like from 052/051B to 052B/C, PLAN waited 7 years before the problems are all sorted out and it can start mass production at much lower cost. At this point, it is no longer forced to make as large leaps in technology, so I think cost escalations have not been major issues with PLAN. As seen in recently in new surface ships, PLAN chooses to either create a new ship class with the same hull but new weapon system or the same weapon systems but the same hull. You can see this in the transition from 053H3 (Jiangwei II) class transition to 054 and then from 054 to 054A. If PLAN had jumped directly from 053H3 to 054A, that would have carried a lot of risks in terms of having a entirely new hull and propulsion system on top of a wholly new air defense system. We've also seen this with 052C to 052D to the speculated 055 class. The new major item weapon systems eventually intended for 055 class will get tested out on 052D. So when 055 program starts, the risk of the project lies only with the new hull and propulsion system and not with the weapon system. The air defense suite, VLS, new naval LACM, main gun, and CIWS would already have been tested on 052D. So after complimenting PLAN for this long, what can they do to lower cost. I think one answer would be to reduce the production level of each ship class that's been mass produced. For example, 022 class could've stopped at 64 instead of whatever the total is now. 054A production run could've stopped at 12 instead of the 16 that's been planned. Yuan class submarine could've been stopped at 8 instead of 12 or 16 that's been planned. I would also advocate for the earlier retirement of some ships that have run out of use like most of the Luda class "destroyers" and Jianghu class "frigates". Recently, we've seen many new warships coming into service, but PLAN has shown an utter reluctance to decommission older ships. PLAN needs to retire some of the older ships or else it will have too many personnel to maintain. Above all, I think if PLAN is really facing a cash crunch, it could always delay the production of a carrier and planned escorts to cut costs. Naval air projects could also be delayed to cut down cost. If the choice for funding of blue water navy was between nuclear submarine or a carrier force, I think it's more important for PLAN to continue to fully fund its nuclear submarine research and development rather than aircraft carriers. There is nothing wrong with spending more time training and learning to operate on one domestic aircraft carrier (+ Liaoning, formerly known as Varyag) before speeding up aircraft production.

I think when it comes to training, large scale exercises and oversea missions, PLA should not cut back its funding in these areas at all. China is finally learning to devote more resources into more advanced training method and improving the quality of its sailors and pilots. Both PLAAF and PLAN have received a lot of new toys recently and I have always wondered whether improvement in software can keep up with improvements in hardware. So even if the procurement budget goes down, the training budget should continue at current pace to bridge the back between China and better trained military forces around the world. Finally, I think personnel cost is not going to be an issue. A large part of the recent climb in PLA budget has been to accommodate the increased quality of life around China. Food and fuel cost in additional to cost of goods have all been going up due to the economic boom. At the same time, better living quarters using more expensive construction material and increased wages have to be allotted to recruit more intelligent young people around the country to have a career in the increasingly less attractive profession of serving in the military. In the bust portion of the economic cycle, these costs will all be turned upside down with inflation likely to completely disappear and worker wage increases falling to flat.

So in the face of increasingly gloomy economic situation in China, PLA will be forced to make some choices in cutting back some of its projected increases. I think that both procurement and personnel cost will see reduction from projected levels. I'm sure the conversation within PLA will be no different than some of the conversations going on in the Pentagon right now

Saturday, September 1, 2012

The emergence of 052D

PLAN followers such as myself are always excited to see new class of ship to come out and to speculate on new classes. In a recent blog entry, I wrote about the 052C program and afterwards. I speculated that the destroyers under construction in the docks are are 052D. It turned out that my speculations were correct and one of them was launched this past week. We have been seeing a steady stream of photos coming out as people are getting a closer look at the changes on 052D. The first thing we saw was that 052D has relatively the same hull as 052C, which is understandable, since they are using the same propulsion technology. The question has always been what kind of different weapon systems they will fit on this new class. The first set of photos we saw showed new Phased Array radar panels installed on 052D. It's the same type of radar we recently saw installed on the test ship. From the third picture, you can see that it's quite a bit larger than the ones on 052C. The sides of the bridge (especially the ones holding the radar panels) are slightly to noticeably more sloped for possible signature reduction. A new 130 mm main gun is installed in the front replacing the older 100 mm main gun. The CIWS up front remains as Type 730. We see a FCR installed on the foremast for the main gun. However, the rest of the foremast looks to be quite different than 052C. We no longer see the OTH targeting radar commonly found on 054A and 052B/C ships. Then, we got a set of photos showing over the top view of this ship compared to 052C. The second picture shows 052D holding a new type of VLS structure up at front that's more similar to MK-41 and the HHQ-16 VLS than the circular ones on 052C. This is possibly the multi-missile VLS that was reported to have been under development. Compared to 052C, we are seeing a modified funnel design that buries funnels for signature reduction. The base that holds the Type 517M radar is moved forward compared to 052C. We will have to wait to see what's around that. The hangar was moved from the left side to the center. It seems like Type 730 will not be installed here, since it requires deck penetration and the hangar for 052C had to move off center because They placed the aft VLS installations and Type 730 along center. Rather, the non-deck penetrating version of HQ-10 will probably be installed here. I suppose the targeting radar for HQ-10 will either be installed alongside it or next to the Type 517M. The area that used to hold the YJ-62 launchers and the multipurpose rocket launchers have been replaced with the aft VLS installations. The rocket launchers have been moved to the two sides of the platform on top of the hangar. I'm not sure where the anti-ship missiles will be installed. So, we do see quite dramatic changes to the weapon systems employed on 052D. The hull is similar but appears to have some modifications to fit the weapon systems and have reduction in signature. The beam of the ship appears to greater than 052C from the comparisons, but that's probably just based on the angle of the shot. A more powerful multi-functional radar has been installed, which could only point toward greater AAW potential. The biggest question on most people's mind are the number of VLS cells. From people that have been there, the word is that the front VLS installation and aft VLS installation are both holding 32 VLS cells. That's compared to 36 and 12 on 052C. Another question has been whether these cells can quad pack or dual pack one of the shorter ranged missiles. The other question is whether they can hold LACMs or AShM or ASW missiles. We will find out in the coming months and years, but that's still a mystery at this point. Either way, it's a definite improvement over the combat capabilities of 052C. While holding 64 VLS cells may not satisfy some PLAN fans (compared to 96 MK-41 on Flights II Arleigh Burke class), one has to remember that this ship is most likely around 7000 to 8000 ton in displacement fully loaded. Until the next generation of AAW warship comes out with greater propulsion, there is a limitation to how much 052 series of ships can hold.

Sunday, August 12, 2012

Type 056 Class

I've talked about the Type 056 class before, but this is a more in depth look at it now that we are seeing mass production across numerous shipyards. Ever since we first saw 022 and 054 class in the middle 2000s, we've speculated about a new class of ship between 1000 and 1500 ton to fill in the middle and replace the patrolling duties of the Type 037 class and Jianghu class light frigates. As early as 2008, I put an entry where I talked about this. In the recent years, we've seen the expansion of China's civilian maritime surveillance force with the induction of many new cutters. A lot of the cutters built for CMS and FLEC fleet are already taking up the role of patrolling South China Sea and East China Sea in the disputed regions. It certainly raises tension when warships are patrolling the disputed regions. When we saw a Type 056 model presented by the deputy commander of the PLA Hong Kong Garrison in late 2010, discussions about the number, the role and the capabilities of this new Type 056 class started again. It seemed like at least four of the first batch 056 will be replacing the 6 Type 037 currently assigned to protecting Hong Kong. Outside of that, I saw heated discussions in forum over whether these ships are needed when the cutters are already such a big part of China's near shore security force. But the recent grounding of Jianghu class 560 shows that PLAN is still a very large part of the patrolling effort in China's surrounding waters. In fact, 6 Jianghu class frigate (558 to 563) were upgraded in 2010 for the very purpose of patrolling South China Sea so that the more advanced Type 054A and 052C class ships can be used for blue water operations. After all, these civilian ships (with maximum speed of 18 to 20 knots) aren't likely to be too useful if a real conflict breaks out with Vietnam. Over the few months, we've seen the Type 056 program exploding in four different shipyards around the country. We've seen at least 2 056s in HD shipyard, which also produces 054A and 071 amongst many other naval ships. We've also seen at least 2 056s in HP shipyard, which also produces 054A, cutters and rescue ships. We've also seen one 056 launched in WuChang shipyard with possibly more under construction. WC typically produces conventional submarines and large cutters. Most surprisingly, we've also seen one 056 launched recently in LiaoNan shipyard in Dalian. This is not the Dalian shipyard that has done all the works with Varyag and 051C, but a smaller shipyard more known for repairing ships. Although, it did build some Type 022 class FACs. The 056 class itself is probably most comparable to the K130 class of Germany (although smaller and probably has less endurance). It features a rather stealthy hull like most modern ships of its class. At front, it carries 1 AK-176M main gun and two of the new 30 mm CIWS on each side of the foremast. It uses Type 360 radar for volume search and type TR47 FCR for the CIWS. At back, it carries a 8-cell HQ-10 SAM with its accompanying FCR. In the middle, it carries 2 dual-pack YJ-83 launchers for ASuW. I was one of those that thought Type 056 would carry S-100 UAVs in its small hangars like the K130 class. As it turned out, the space that I thought were hangars are actually carrying torpedo tubes. Along with its sonar suite (including bow mounted sonar) and possible helicopters for short patrols, these ships should provide for ASW with conventional submarines in near water. The first launched Type 056 ships are not equipped with Tow Array Sonar. My guess is that the torpedo tubes can easily be removed to provide for hangar space for UAVs for the variant of Type 056 built more for SAR, patrolling and ASuW in mind. I think we are already seeing some minor differences between different 056s hulls, which could point to different variants of 056s.

Saturday, July 21, 2012

052C and beyond

In 2003, the first two 052C class destroyers were launched in JiangNan shipyard. These two ships (170 and 171) were commissioned into the South Sea Fleet in 2004 and 2005. Since then, they have been the most advanced and powerful warships in service with PLAN. After these ships joined service, we have been waiting for the next evolution of destroyers to join PLAN. Russia delivered a couple of Type 956 EM battleships shortly afterward, but they really are not as advanced as 052C. After that, 2 051C destroyers were launched in Dalian and commissioned into North Sea Fleet, but they do not have the advanced combat system, multifunctional radar, long range anti-ship missile and more streamlined hull of 052C. As a result of Shanghai World Expo in 2010, JiangNan shipyard was moved to ChangXing Island. We were waiting to see new photos from ChangXing Island to see new DDGs to come out. Finally in 2010, we started seeing photo of a new 052C at the JiangNan shipyard at ChangXing. The third 052C was finally launched in late 2010. We looked carefully at the pictures and did not see any major external change compared to the first two.

After almost 2 years, the third 052C is finally ready to join East Sea Fleet as 150. We see a photo below of what appears to be its last sea trial. The number has yet to be painted, but everything should be set. These will be using the new QC280 gas turbines as opposed to the GT-25000 on the first two 052C.

We also had a boatload of pictures coming out of JiangNan shipyard over a week ago. First, we can see the current status of the 4th and 5th 052C. The 4th 052C might have had its first sea trial already, but it still has plenty of scaffolding, indicating the additional work needed. Both of these ships should join East Sea Fleet in the same flotilla as 150 before end of 2013 (as 151 and 152).



The 6th 052C also launched recently at the shipyard. It looks much further away and launched without much installations. I think it was only launched because newer warships had to be moved into the dry docks (which can only handle two warships of 052C size at the same time). This will probably join ESF as 153 by early 2014. We will have to wait a little bit to see if 5th and 6th 052C have any external differences from the earlier ones.

A little less further along, we have 3 more destroyers under construction in JN shipyard. There are two destroyers in the dry docks as shown below. We can also see the modules of a third one outside. At this point, we don't know if these ships will be like 052Cs or of a new class. It could be the 052D class or a whole new designation.


We have a seen a couple of development on experiment ships that may carry forward for the newer ships. First, we have this new type of multifunctional radar being tested on 891. It looks like an improvement over the current type on 052C.

Another interesting development are these launchers for what appears to be the naval version of CJ-10 LACM. It's quite possible that 052D and future variants will be using tube launched LACM. There have been words on Chinese version of MK-41 in development, but it might not be able to launch something the size of a LACM.

Tuesday, July 17, 2012

China's foreign policy under Deng

This is the second part of my blog entries on Deng Xiaoping based on the book by Ezra Vogel. Next time, I will explore Deng and June 4th student movement, but this entry will look over his foreign policy works. Ezra Vogel did a great job exploring the major foreign policy decisions faced with Deng at the time of his reign. They included the normalization of relations with USA, Japan, USSR, war with Vietnam and negotiations with Taiwan and Tibetan exile government.

When looking at the normalization of relationship with USA and Japan in the late 70s, it's really interesting to see how weak China's negotiation positions were. At that point, China needed the west for investments, technology, education and support against USSR. In fact, Mao decided to approach US only after he realized China badly needed America to help fend off the Soviet threat. It's probably hard for someone from Deng's generation to imagine the West needing China for money to bail out.

When Deng came back to power in the late 70s, China was facing not only overwhelming Soviet threat to the north and West (the backfires could bomb Beijing and fly back to their bases without escort), but also a superior trained and equipped Vietnamese side to the south. Even North Korean support was not guaranteed. China was faced with a full encirclement and was weak economically and militarily. First, Deng made sure to firm up China's relationship with the North Koreans to reduce threat from East. Then, Deng decided China had to break the encirclement by attacking Vietnam. Of course, China was facing the threat of Soviet retaliation, so it worked hard to speed up the normalization of relations with both USA and Japan. America and its allies feared USSR hegemony over continental Asia, so both USA and Japan were willing to extend hand to China for cooperation against USSR. Deng recognized a window of opportunity to show a new and stable China to the rest of the world and normalize relations with Western powers. In 1972, China had already officially normalized relations with Japan, but a more comprehensive treaty needed to be signed and China wanted an anti-hegemony clause for support against USSR, Before Deng visited Japan in October 1978, Japan had been reluctant to accept such a clause that was so blatantly pointed at USSR. China was limited by time constraint of its impending invasion into Vietnam, so eventually gave in by allowing a mitigation clause saying the anti-hegemony was not aimed at anyone. When Deng visited Japan, he put a lot of Japanese at ease about Chinese intentions and focused on future cooperations rather than the past. By not bombarding Japan with past guilt, Deng won a lot of support from Japanese business in investment and modernization. When I read this, I think that the current generation of Chinese leaders also have better options in negotiations with Japan than only trying to push forward with hard power. They can have less aggressive foreign policy toward Japan without appearing to be weak at home.

By the late 70s, high level discussions were under way for normalization of relations between China and USA. Deng realized that he not only needed US to counter Soviet threat, but also to modernize and invest. Deng's biggest pitch to USA was the threat of Soviet ambitions and hegemony in Asia. He labeled the Americans as too soft on USSR. There was the one major problem of Taiwan. Deng would not normalize relations with US unless US broke diplomatic relations with Taiwan, ended US/Taiwan Mutual Defense Treaty and withdrew its military from Taiwan. Deng expected Taiwan to be forced to reunify with China once this happens. Deng would allow Taiwan to still have its own autonomy and even keep its army, but take down its flag. US basically agreed with all the conditions, but insisted that it reserves the right to sell Taiwan selected weapons of defensive nature. Deng eventually gave in to that demand allowed normalization to continue. i think Deng realized that China did not have enough leverage on Washington to stop all weapon sales. They had a narrow window of opportunity to negotiate the normalization of relation due to the political climate in Washington and the Taiwan lobby. Deng and the US negotiators at that time believed that weapon sales would eventually stop completely as American public accept mainland as the only China, which would pressure Taiwan into reunifiction talks. I think Deng held out hope that Taiwan would cave and reunify with China during his life time, but that obviously did not happen. Two important events happened to stop this. Taiwan ended martial law and human right abuses and adopted democracy. The June 4th student movement was crushed in Beijing and stopped China's move toward greater political reform. After that, Mainland became the evil dictatorship and Taiwan became the democratic underdog seeking liberty. It would be hard to imagine American public supporting ending weapon sales at this point. At the same time, the Chinese leadership have not given up the hope that America would stop weapon sales to Taiwan over time due to these early discussions. So if you wonder why China makes a big deal out of each weapon sales to Taiwan, it is because China expected USA to stop selling weapons to Taiwan several years after the normalization. We've seen many change of leadership in America since 1979, but the Chinese leadership still adopts the same position taken by Deng over 30 years ago. Of course, the normalization has helped China far more than USA, so Deng was correct to conceed on the weapon sales even if he was accused by some as too soft in negotiations. More importantly, Deng impressed his American counterparts with his directness and provided a look of reason to the American public during his visit. He did not appear as a hated communist but rather someone looking to improve the lives of his people. That's someone the Western world can sympathize in. He managed to have a successful trip even though he told Carter that China is about to attack Vietnam. The current generation of Chinese leaders are a bunch of lifeless technocrats who always stick by the script. I don't think any of them could have pulled that off without widespread condemnation.

Once Deng came back from America, China launched its war against Vietnam. The elite PLA troops were left along the Soviet border for possible retaliations, so only secondary tier of troops were attacking Vietnam. The conflict concluded in less than 30 days without Soviet intervention and PLA claimed to have achieved its primary goals before withdrawing with a "Scorch Earth" policy. However, PLA suffered serious casualty, because it was still recovering from the Cultural Revolution and was simply not ready to fight. Looking broadly, Deng did achieve his goal of reducing Vietnamese power in ASEAN region and enhancing China's standing amongst countries fearing Vietnam/USSR hegemony. The Scorch Earth policy seriously damaged infrastructure/countryside in North Vietnam and severely reduce the offensive capability of Vietnam along the border. By demonstrating to Vietnam that it is willing to attack, Vietnam was forced to keep more than half a million soldier to protect itself from China. Vietnam eventually could not afford to keep that many soldiers along Chinese border while also occupying Cambodia, so it had to give up its dream of regional hegemony. This conflict basically removed the Soviet encirclement allowing China to have peace and fully pursue economic development. Even so, I tend to think the last part could have been achieved without attacking Vietnam. Not only did China suffer 20,000 to 60,000 causalities, it also diverted precious resources that should have gone toward improving the economy. Unlike the current American model of financing war on debt, China had to run a relatively balanced budget at that time. On top of that, the invasion and earth scorching policies have left deep distrust and resentment toward China from Vietnam. And after Soviet Union got bogged down in Afghanistan in the 80s, China no longer faced the same level of encirclement dangers from the Soviets. We will never know if the Soviet encirclement threat was so great that China had to loose so many young lives and money to ensure peace and stability.

Deng's approach toward USSR as a whole was quite effective. By the 70s, the security threat facing China from USSR was so strong that even Mao decided to turn to the much hated Americans for support. PLA combat capabilities significantly weakened during the Cultural Revolution as it focused on class struggle and political thoughts rather than training and improvement. And America was receptive toward Chinese overtures because it was concerned that USSR would take over China and dominate all of Asia. Deng faced the same threat when he took over, which is why he made such a strong presentation to Japan and America about the threat of Soviet hegemony in Europe and Asia. He repeatedly pointed out American weakness and labeled SALT II as American appeasement toward Soviets. Deng himself took a very hard stance toward Russians. He attacked Vietnam to show that Russia was not prepared to be drawn into a land war in East Asia. This was an extremely gusty and risky move, because PLA really would have a hard time stopping Soviet advances had a retaliation come. Deng felt that Soviet concerns in Europe and China's new found friendship with USA and Japan would prevent Soviet retaliation to the north. He turned out to be right. After he felt the encirclement threat was gone, he reached out to USSR again for normalization of relations. He felt that USSR would eventually exhaust from arms race with America and its war in Afghanistan, so he gave them three conditions for normalizing relations. He demanded that the Soviets had to pull out of Afghanistan, remove troops from China's northern border area and the Vietnamese had to leave Cambodia. He stuck by those conditions all through the 80s until the Soviet leadership gave in to normalize relations. Gorbachev came in 1989 on Deng's terms and even offered to sell China its most advanced Su-27 fighter jets.

Deng, like Mao and Zhou before him, had hoped that Taiwan would reunite with China during their lifetime. In 1683, 22 years after remnants of Ming troops fled to Taiwan, their leaders agreed that Taiwan would again become part of China. Deng hoped that Chiang Ching-Kuo would also rejoin Taiwan to China. He proposed that Taiwan could keep its own social system for 1000 years and even keep its own army, but have to take down its flag. Chiang was defiant and maintained that the Republic of China represented all of China. Deng wanted to isolate Taiwan in the international stage to pressure them into voluntarily rejoining China, but the passage of the Taiwan Relations Act provided all the support that Taiwan needed. It was a huge blow for Deng, who felt that that the conditions of normalization would lead to reduction of arms sales to Taiwan. Deng believed at that time that US would eventually stop selling all weapons to Taiwan, which would pressure Taiwan to rejoin China at some point down the road. 15 years after Deng's death, US and China still have the same position toward Taiwan. On one hand, Taiwan has drawn closer to China with business integration, increased trades, direct flights and increased tourism. On the other hand, the majority of Taiwanese now consider themselves as Taiwanese rather than Chinese. Deng had said that China is willing to wait a century and even a millennium to reunify with Taiwan. You can see that the current Chinese leadership is still trying to slowly increase its leverage over Taiwan until Taiwan takes down its flag. The negotiations over Hong Kong was also quite interesting. Britain was coming off the highs of Falkland Islands victory and Thatcher came into the negotiations thinking that Deng's positions were negotiation tactics. Thatcher came out of the meeting with Deng so shaken by Deng's tough stance that she slipped and fell to her knees. Over the next year, Deng made it clear that China is not Argentina and would send in the troops to take control of Hong Kong if needed. China's forceful position eventually persuaded the British to sign the declaration for handing over Hong Kong in 1997.

Deng's positions toward Tibet was not as inflexible as some may think. Back in the 1950s, Mao had achieved relatively good relations with the Tibetans by allowing Dalai Lama to have relative autonomy over the Tibetan Autonomous Regions (TAR). Tibetans accepted Chinese sovereignty, but was granted the right to administer TAR, keep their own currency and even maintain their own army. China would be in charge of foreign affairs, military affairs and border controls. The problem happened due to the communist reforms in areas outside of TAR, where half of the Tibetans lived. The Tibetans in Sichuan rioted and then fled to Tibet after they were beaten. Of course, we had more conflicts on TAR in 1959, which led to Dalai Lama moving the Tibetan exile government to India. When Deng came to power, he had to reconcile with Tibetans who had suffered the wrath of Cultural Revolution when the red guard destroyed a lot of Tibetan culture. Deng really tried to make amend when he first came to power, but he also was unaware of the true alienation of Tibetans against the Han population. When Tibetan exile delegation visited TAR, they became more critical of Chinese treatment of Tibetans. Hu Yaobang and Deng tried to take a much softer approach in TAR to satisfy the Tibetans. However, their position was still not good enough for Dalai Lama and also increased Tibetan belief that they can become independent. The two sides did try to reconcile their positions, but at least one Tibetan condition is too much even for the most reasonable and leniant Chinese negotiator. Tibetan exiles wanted the boundaries of Tibet to be extended to include the Tibetan minority areas in other provinces including Sichuan, Ginghai, Gansu and Yunnan. Now, Tibetans are the minorities in these area (and have been so for quite some time), so I think this is probably the most unreasonable condition. Now, the softer approach toward Tibetan led to to Tibetan revolts for full independence in the late 1980s, which were crushed. Since then, China has practiced a much more heavy handed approach in Tibet while trying to promote economic growth to stabilize the region. Through the negotiations in the 80s, I think Chinese leadership concluded that although Dalai Lama himself may accept autonomy and return to rule in Tibet, the rest of the Tibetan exile movement are more extreme and would not allow Dalai Lama to take a middle approach. I think the Chinese leadership would've been okay with granting Dalai Lama the same level of autonomy that he had in the 1950s (if not more) for TAR, but there have been too much bad blood built up in the recent years for Tibetans to accept that. The positions from both side have not really changed since the 80s. Unless Chinese leadership is willing to apologize to the Tibetans and push local officials to be more lenient in TAR, I don't really see things moving for the better. On the overall scheme of things, Deng never regarded Tibet as important as Taiwan, Hong Kong and foreign relations.

I think the most impressive part is that Deng knew what he could extract from each country that he dealt with. He knew which countries he needed to visit to build up support for his agenda. He also had a clear understanding of the geopolitical situation around the world and waited for the right time to strike. He also appealed to other world leaders with his directness and honesty. During normalization of relations with USSR, he told American counterparts that negotiations were going on and assured them that relations with America would remain strong. Deng formulated the theory that China should "adopt a low profile and never take the lead". Simply put, Deng knew how to reduce tension and build relationships without caving into foreign demands. After Deng, I think the Jiang Zemin + Zhu Rongji administration also did a good job, but the current Hu Jintao administrations just seem to bundle one situation after another. The other interesting thing he did was allowing large numbers of Chinese students to travel abroad to study (compared to Soviet fears of brain drain). He thought that those who go abroad would help China even if they did not return to China right away. That's one assessment that he had great foresight in. An ever increasing number of former students that settled abroad have now brought back their knowledge and expertise to improving China. I see this in my parents' generation. Many of them are living comfortable lives in the Western world, but still talk of doing something to help their home land. Overall, I think Deng should not have attack Vietnam. Other than that, I think his policies were spot on.

Wednesday, July 11, 2012

An updates from Chinese shipyards

It's been a while since I've last updated on the activities of the Chinese shipyards. I've last updated in April and we have seen quite a lot of activities since that time. Just to give an update on progress from different shipyards before showing some pictures.

The 3rd 052C looks to have entered service as 150. We haven't seen too many photos from JN shipyard, so I'm not sure what exactly are the status of the 4th and 5th 052C. Although, I expect the 4th 052C to be on sea trials right now. 054A construction continues to be at a brisk pace. The 5th 054A from HD shipyard joined the North Sea Fleet as 546. The 6th 054A from HP shipyard joined the South Sea Fleet as 572. We have seen the launching of the 8th 054A from HP shipyard and the 7th 054A from HD shipyard. I think there will eventually be 18 054A joining service. Combining that with the 2 054 FFG, they will form 5 flotillas (2 in SSF, 2 in ESF and 1 in NSF). The other interesting part is that the newer 054As are all getting sent to Gulf of Adens. Having additional 054As in rotation for 3 months deployments (longer when we factor the time to go there and back) would reduce the stress level for the sailors of the earlier 054As. It provides for a long extended sea trials for the new 054As and a great training opportunity for their crew. We have to remember that most PLAN crews have neither operated on a modern ship nor been on long deployments before getting assigned to their new ships.

We also have seen the launching of the first 056 class patrol ship from both HD and HP shipyards. It remains to be seen how large of a production run 056 will see, but the speculation is that 056 will be replacing 037 class. That would put the production number somewhere between the 054A class and the 022 class. Among the larger ships, we have seen both Type 903 AORs from GSI and HD shipyard launched. PLAN's existing fleet of AORs have been severely over-worked on Gulf of Aden deployments, so they would really welcome the additional Type 903s. Also, it appears that the second Type 926 submarine tender have joined the service.

Here are some recent photos from around Chinese shipyards. The first 3 are from HD shipyard. They show the recently launched 7th 054A and the first 056 from HD shipyard.


The pictures below shows the yet to be launched second 056 class and the newly launched Type 903 AOR.


Now, we have photos from HP shipyard showing the 8th 054A and the first 056 ships. The one below shows the second 056 which appears ready to be launched soon.


Finally, we have a picture from GSI (Guangzhou Shipyard International) showing the third type 926 submarine tender and the other Type 903 AOR.

Thursday, June 28, 2012

First thoughts on Deng Xiaoping

Recently, I've been reading Deng Xiaoping and the transformation of China by Ezra Vogel. I still have not finished reading this book, but have read enough to be riveted by its content and amazed by Deng and other important leaders of his time. Many of the people mentioned in the book like Deng, Mao, Zhou Enlai, Nixon, Kissinger and Brzezinski are larger than life characters to me. Not only are they truly impressive human beings with knowledge and leadership qualities, but they are also masters at diplomacy and maneuvering in foreign relations. Compared to leaders of that era, the current Chinese leaderships are a group of dull, gutless technocrats who continually get out-maneuvered in the international arena by their American counterpart. For those who want a thorough understanding of China, I think this book is a must read. Many of the competing forces in the communist leadership mentioned in the book are still there today in the current Chinese leadership.

The book spent a lot of time talking about the two leaders (Mao and Deng) who have most profoundly affected China since the communist party took over. I've always thought of Mao and Deng to both be incredibly ruthless people with strong leadership qualities. Those beliefs have been more or less confirmed reading this book. This book confirmed to me that Mao was extremely egotistical and used his power for self-promotion and the promotion of his own brand insane economic and political model. His ruthlessness brought poverty and backwardness to China as well as the deaths and punishment of everyone around him who dared questioning him. By contrast, Deng used his ruthlessness not for his own gains, but rather for improvements in the life of Chinese people and continued strength of the communist party. Deng believed strongly that only peace, unity and political stability behind the rule of communist party can lead to the prosperity and strengthening of China. He believed extremely strongly that China needed centralized powers to achieve its end goals. He was willing to use his powers to toss away/humiliate leaders like Hu Yaobang, Zhao Ziyang and Hua Guofeng, crush student protest and take heavy casualties in war against Vietnam. He did all of this because he believed those things are needed to achieve the end goals of prosperous and strong China. He had been purged 3 times in life (humiliated many more times) and his son became crippled during one of those purge. Those events really hardened him to the point where he seemed to believe that individuals or minority group suffering is okay as long as the majority of country gains. These ideals that Deng instilled in his reign seem to still be prevalent in China now. I will talk about everything in detail later, but I want people to know that Deng is not a warm fuzzy leader with Western ideals of democracy and liberty nor is he a brutal dictator like Mao, Stalin or Qaddafi. He is a strongly convicted and committed reformer willing to do whatever is necessary to bring the changes that he thinks are needed to fix China. He was very effective in leading China out of poverty and irrelevance. Since his departure from leadership, the past 2 generations of leaders have only lived off the changes that he brought.