DTN News: Philippines Wins South China Sea Case Against China

DTN News: Philippines Wins South China Sea Case Against ChinaSource: K. V. Seth - DTN News + The Guardian

(NSI News Source Info) TORONTO, Canada - July 12, 2016: China has lost a key international legal case over strategic reefs and atolls that it claims would give it control over disputed waters of the South China Sea. The judgment by an international tribunal in The Hague chiefly in favour of claims by the Philippines will increase global diplomatic pressure on Beijing to scale back military expansion in the sensitive area.

By depriving certain outcrops – some of which are exposed only at low tide – of territorial-generating status, the ruling effectively punches a series of holes in China’s all- 

encompassing “nine-dash” demarcation line that stretches deep into the South China Sea. It declares large areas of the sea to be neutral international waters.

Beijing claims 90% of the South China Sea, a maritime region believed to hold a wealth of untapped oil and gas reserves and through which roughly $4.5tn of ship-borne trade passes every year. Vietnam, Malaysia, Brunei and Taiwan also contest China’s claims to islands and reef systems close to their territory than Beijing’s.

Sporadic violence between Chinese vessels and those of south-east Asia militaries have broken out in recent decades and the verdict, the first international legal decision on the issue, could have unpredictable consequences.

The court case at the permanent court of arbitration in The Hague, the UN-appointed tribunal that adjudicates in international disputes over maritime territory, has been running since 2013.

The judgment does not allocate any of the outcrops or islands to rival countries but instead indicates which maritime features are capable under international law of generating territorial rights over surrounding seas. 

China has previously stated that it “will neither accept nor participate in the arbitration unilaterally initiated by the Philippines”. The tribunal ruled, however, that China’s refusal to participate did not deprive the court of jurisdiction and that the Philippines’ decision to commence arbitration unilaterally was not an abuse of the convention’s dispute settlement procedures.

Prof Philippe Sands QC, who represented the Philippines in the hearing, said: “This is the most significant international legal case for almost the past 20 years since the Pinochet judgment.” Last year, US officials claimed the Chinese had built up an extra 800 hectares (2,000 acres) on their occupied outposts across the South China Sea over the previous 18 months.

The main focus of activity has been on Mischief Reef, where satellite images reveal the island is growing bigger, and is surrounded by fleets of dredgers and tankers.

Speaking on the eve of the court’s ruling, Bonnie Glaser, a senior Asia adviser at the Center for Strategic and International Studies, said she did not anticipate a major escalation from Beijing over its findings but admitted its reaction was hard to predict. “[If] the Chinese really do perceive that the ruling is just poking a finger in their eye I think there is a good possibility they will lash out,” she said.

“I believe we have all underestimated Xi Jinping,” Glaser said of China’s strongman president who has pursued an increasingly assertive foreign policy on issues such as the South China Sea. “He just seems quite comfortable with a high level of friction with every country.”

China’s foreign minister spoke to the US secretary of state, John Kerry, by telephone last week to warn Washington against moves that infringe on China’s sovereignty, Chinese state media reported.

And Beijing conducted military drills in the South China Sea, deploying at least two guided missile destroyers, the Shenyang and Ningbo, and one missile frigate deployed.

China says it follows a historical precedent set by the “nine-dash line” that Beijing drew in 1947 following the surrender of Japan. The line has been included in subsequent maps issued under Communist rule.

But the Philippines strongly contests China’s claims, specifically on nearby islands it says are part of the West Philippine Sea. Manila argued in seven hearings that China has exceeded its entitlement under the UN convention on the law of the sea. That gives China 12 miles of territorial waters around islands it controls, far less than claimed under the nine-dash line.

Beijing has the support of Russia and Saudi Arabia but has also garnered backing from dozens of smaller nations far from and not greatly affected by the hearing, including landlocked African countries Niger and Lesotho, as well as Palestine, Afghanistan and Togo. Vanuatu, a Pacific island nation of fewer than 300,000 citizens, also supports Beijing.

The Philippines has been backed by the US, UK, France, Japan and others.

The Philippine president, Rodrigo Duterte, is widely considered unpredictable and his moves in the next days and weeks will determine what could happen next.

*Link for This article compiled by K. V. Seth + The Guardian
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DTN News - AIRLINES NEWS: Malaysia Airlines Flight MH370 Mystery

Asian Defense News: DTN News - AIRLINES NEWS: Malaysia Airlines Flight MH370 Mystery

Source: DTN News - - This article compiled by K. V. Seth from reliable sources Fox News
(NSI News Source Info) TORONTO, Canada - March 10, 2014: Vietnamese aircraft spotted what they suspected was one of the doors belonging to the ill-fated Malaysia Airlines Flight MH370 on Sunday, as troubling questions emerged about how two passengers managed to board the Boeing 777 using stolen passports.

The discovery comes as officials consider the possibility that the plane disintegrated mid-flight, a senior source told Reuters.

The state-run Thanh Nien newspaper cited Lt. Gen. Vo Van Tuan, deputy chief of staff of Vietnam's army, as saying searchers in a low-flying plane had spotted an object suspected of being a door from the missing jet. It was found in waters about 56 miles south of Tho Chu island, in the same area where oil slicks were spotted Saturday.

"From this object, hopefully (we) will find the missing plane," Tuan said. Thanh Nien said two ships from the maritime police were heading to the site.

An authority told Reuters that it was too dark to be certain the object was part of the missing plane, and that more aircraft would be dispatched to investigate the site in waters off southern Vietnam in the morning.

Rahman said that the search area has been increased to 50 nautical miles, from 20, and includes 34 aircraft and 40 ships. Aircraft are conducting 12-hour searches, until sundown, while ships are scheduled to continue the search throughout the night.

Meanwhile, Interpol says no country checked its database for information about stolen passports that were used to board the Malaysia Airlines flight that disappeared with 239 people on board Saturday less than an hour after taking off from Kuala Lumpur, Malaysia, bound for Beijing.

In a sharply worded criticism of shortcomings of national passport controls, the Lyon, France-based international police body said information about the thefts of an Austrian passport in 2012 and an Italian passport last year was entered into its database after they were stolen in Thailand.

Interpol said in a statement it was investigating all other passports used to board the flight and was working to determine the "true identities" of the passengers who used the stolen passports.

"I can confirm that we have the visuals of these two people on CCTV," Malaysian Transport Minister Hishammuddin Hussein said at a news conference late Sunday, adding that the footage was being examined. "We have intelligence agencies, both local and international, on board."

Hussein declined to give further details, saying it may jeopardize the investigation. Hussein said only two passengers had used stolen passports, and that earlier reports that the identities of two others were under investigation were not true.

European authorities on Saturday confirmed the names and nationalities of the two stolen passports: One was an Italian-issued document bearing the name Luigi Maraldi, the other Austrian under the name Christian Kozel. Police in Thailand said Maraldi's passport was stolen on the island of Phuket last July.

A telephone operator on a China-based KLM hotline on Sunday confirmed to The Associated Press that "Maraldi" and "Kozel" were both booked to leave Beijing on a KLM flight to Amsterdam on March 8. Maraldi was then to fly to Copenhagen, Denmark, on KLM on March 8, and Kozel to Frankfurt, Germany, on March 8.

She said since the pair booked the tickets through China Southern Airlines, she had no information on where they bought them. The ticket purchases reportedly took place almost simultaneously, and the tickets were numbered consecutively, according to the BBC.

A U.S. official told Fox News that a key priority is clarifying the status of the passports, whether they were lost or stolen, and determining through airport security screening and video who got on the flight under those names.

The statements came as officials said finding the wreckage of the flight is “the utmost priority."

“There is still no sign of the aircraft,” Azharuddin Abdul Rahman, director general of the Department of Civil Aviation, said during a news conference in Kuala Lumpur.

The U.S. Navy sent a warship, the USS Pickney, which was conducting training and maritime security operations off the South China Sea, and a surveillance plane. Singapore said it would send a submarine and a plane. China and Vietnam were sending aircraft to help in the search.

It is not uncommon for it to take several days to find the wreckage of an aircraft floating on the ocean. Locating and then recovering the flight data recorders, vital to any investigation, can take months or even years.

When pressed on reports of fake passports used by at least two passengers on board the flight and the possibility of a terrorist attack, Rahman re-stated that the priority is to find the aircraft and that any probe investigating a terror link is independent of the search mission. Malaysian Prime Minister Najib Razak has also said it is “too early to make any conclusive remarks.”

Earlier, Malaysia’s air force chief told reporters that military radar indicated that the plane may have turned from its flight route before losing contact.

Rodzali Daud didn't say which direction the plane might have taken when it apparently went off route.

"We are trying to make sense of this," he told a media conference. "The military radar indicated that the aircraft may have made a turn back and in some parts, this was corroborated by civilian radar."

Malaysia Airlines Chief Executive Ahmad Jauhari Yahya said pilots were supposed to inform the airline and traffic control authorities if the plane does start to return. "From what we have, there was no such distress signal or distress call per se, so we are equally puzzled," he said.

Vietnamese air force planes spotted two large oil slicks late Saturday in the first sign that the aircraft had crashed. The slicks were each between 6 miles and 9 miles long, the Vietnamese government said in a statement.

But there was no confirmation that the slicks were related to the missing plane, but the statement said they were consistent with the kinds that would be produced by the two fuel tanks of a crashed jetliner.

The plane was carrying 227 passengers, including two infants and 12 crew members when it “lost all contact,” with Subang Air Traffic Control at 2:40 a.m., two hours into the flight, the airline said. The plane was expected to land in Beijing at 6:30 a.m. Saturday.

Around the time the plane vanished, the weather was fine and the plane was already at cruising altitude, making its disappearance all the more mysterious.

Just 9 percent of fatal accidents happen when a plane is at cruising altitude, according to a statistical summary of commercial jet accidents done by Boeing. The plane was last inspected 10 days ago and found to be "in proper condition," Ignatius Ong, CEO of Malaysia Airlines subsidiary Firefly airlines, said at a news conference.

The lack of a radio call "suggests something very sudden and very violent happened," said William Waldock, who teaches accident investigation at Embry-Riddle Aeronautical University in Prescott, Ariz.

The plane "lost all contact and radar signal one minute before it entered Vietnam's air traffic control," Lt. Gen. Vo Van Tuan, deputy chief of staff of the Vietnamese army, said in a statement issued by the government.

U.S. officials said late Saturday that a team of safety experts had been dispatched to Southeast Asia to assist in the investigation. Officials from the National Transportation Safety Board told Fox News that the team, which includes investigators from the agency and technical experts from the Federal Aviation Administration and Boeing, had been sent to the region despite the fact that the plane had not been located due to the lengthy travel time from the U.S. and the team's desire to be in a position to assist local authorities right away. The FBI is also assisting in the search.

Meanwhile, a former intelligence official told Fox News that the information about stolen passports from two adjacent European countries, combined with recent warnings for flights to the United States about the risk of possible shoe bomb attacks, is concerning.

The airline said onboard the plane, there were 152 passengers from China, 38 from Malaysia, seven from Indonesia, six from Australia, five from India and three from the U.S. and others from Indonesia, France, New Zealand, Canada, Ukraine, Russia, Taiwan and the Netherlands.

The U.S. State Department later confirmed in a statement that three Americans were aboard the jetliner.

In the United States, a friend confirmed to the Associated Press that an IBM executive from North Texas named Philip Wood had been aboard the jet. Freescale Semiconductor, a company based in Texas, also confirmed Saturday that 20 of its employees -- 12 from Malaysia and eight from China -- were passengers.

The airline says the plane's pilot is Captain Zaharie Ahmad Shah, a 53-year-old who has been with the airline for over 30 years. The plane's first officer is Fariq Ab.Hamid, a 27-year-old who joined the airline in 2007. Both are Malaysians.

At Beijing's airport, authorities posted a notice asking relatives and friends of passengers to gather at a hotel about nine miles from the airport to wait for further information, and provided a shuttle bus service.

Malaysia Airlines has 15 Boeing 777-200 jets in its fleet of about 100 planes.

The 777 had not had a fatal crash in its 20-year history until the Asiana Airlines crash in San Francisco in July 2013.

Fox News' Catherine Herridge and Dan Gallo, as well as The Associated Press contributed to this report.

*Link for This article compiled by K. V. Seth from reliable sources Fox News
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DTN News - CHINA DEFENSE NEWS: China Announces Surge In Military Spending To Almost $132 Billion

Asian Defense News: DTN News - CHINA DEFENSE NEWS: China Announces Surge In Military Spending To Almost $132 Billion

*China continues years of double-digit rises in military spending to alarm of Asian nations and US

Source: DTN News - - This article compiled by K. V. Seth from reliable sources Telegraph UK
(NSI News Source Info) TORONTO, Canada - March 5, 2014: China has announced a 12 per cent increase on its military, already the largest in the world, sparking concerns among its Asian neighbours and the US.

Beijing has for years been raising spending on the People's Liberation Army (PLA) in double-digit steps, reflecting its military ambitions as it asserts its new-found economic might and its claims in a series of territorial disputes with Japan and others.

"The appropriation for national defence is 808.23 billion yuan (£79 billion), up 12.2 percent," said a budget report prepared for the annual session of the National People's Congress (NPC), China's Communist-controlled parliament, which began on Wednesday.

"We will resolutely safeguard China's sovereignty, security and development interests," Premier Li Keqiang said at the opening session.

"We will safeguard the victory of World War II and the post-war international order, and will not allow anyone to reverse the course of history," he said - a phrase China often uses in relation to rival Japan.

Beijing would also "place war preparations on a regular footing" and "build China into a maritime power", Li added.

In comments ahead of the gathering, NPC spokeswoman Fu Ying sought to play down foreign worries about China's defence expenditure.

"Certain countries have been selling the idea of China as a major threat," she said. "Based on our history and experience, we believe that peace can only be maintained by strength."

This year's stated increase follows rises of 10.7 percent in 2013, 11.2 percent in 2012 and 12.7 percent in 2011.

Analysts believe China's actual military spending is significantly higher than publicised, with the Pentagon estimating it at between $135 billion and $215 billion in 2012.

The United States itself remains far ahead as the global leader in defence spending, with Washington approving a 2014 budget of $633 billion in December.

China devotes about three times as much as India to defence, and more than neighbours Japan, South Korea, Taiwan and Vietnam combined.

Beijing's spending could match that of Washington by the 2030s, the International Institute for Strategic Studies said in February, but added that its capabilities, expertise and ability to project power would require several more years to catch up.

Nonetheless the increases have raised concerns in the US and Asia, particularly in Japan, with the two countries embroiled in an escalating row over East China Sea islands called Diaoyu in Chinese and Senkaku in Japanese.

After the latest figure was revealed, Japan expressed concern about Beijing's level of openness about the PLA.

"The transparency of China's defence policy and military capacity, or lack thereof, has become a matter of concern for the international community, including Japan," Chief Cabinet Secretary Yoshihide Suga told reporters.

China's actions will both fuel the concern of its neighbours and encourage them to beef up their security cooperation with each other and the US, said Denny Roy, an expert on China's military at the East-West Center in Hawaii.

"This would add to the momentum of something that's already in motion," he told AFP.
In December, the cabinet of Japan's hawkish Prime Minister Shinzo Abe agreed to spend 24.7 trillion yen (£144 billion) between 2014 and 2019 in a strategic military shift towards areas of the country facing China - a five per cent boost to the defence budget over five years.

China decried Japan's increase at the time as an issue of "great concern to neighbouring countries in Asia and the international community".

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*Link for This article compiled by K. V. Seth from reliable sources Telegraph UK
*Speaking Image - Creation of DTN News ~ Defense Technology News 
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DTN News - SHORT STORY: ROOTS OR REALITY BY FREAK OF COINCIDENCE (TRUE OR FICTION) ~ From DTN News Archive

Asian Defense News: DTN News - SHORT STORY: ROOTS OR REALITY BY FREAK OF COINCIDENCE (TRUE OR FICTION) ~ From DTN News Archive
Source: DTN News - - This article compiled by K. V. Seth 
(NSI News Source Info) TORONTO, Canada - February 27, 2014: Today - August 3, while opening my FB (Facebook) earlier this morning, I was amazed to see the esteemed beauty of 15th century Creation of Adam by Michelangelo, posted or tagged by a very dear friend, I address him AMIT DADA  (Amitava Chatterjee). 

I feel we are blessed with hi-tech and technology era and the internet, which is a gold or better platinum mines of knowledge as well free of charge available at your command.

Back on track, on the above aspect., I usually acknowledge the receipt of a posting on my Facebook.

"Thanks Dada., the famous painting of the Creation of Adam by Michelangelo. I saw the related movie - The Agony and the Ecstasy, was released in 1965 casting Charlton Heston, Rex Harrison and Diane Cilento.

Dada, since ADAM is the centrepoint on this aspect, I may add Adam & Eve are listed as having three children named Cain, Abel and SETH.

Another interesting aspect I like to share with you, last Olympics ~ 2008 Beijing opening ceremony was on Aug 8, 2008 my BIRTHDAY, 2012 London on July 27 is my elder brother Guru Dev Seth's BIRTHDAY and 2016 Rio de Janeiro (?).
Take care and kind regards
Karam Seth"

What a freak of a coincidence with an amazing twist of similarity from the conception of Human kind to the current World Largest Sports Events, the four letter words S E T H is in variably connected. Is it True or Fiction ?

DTN News - SPECIAL REPORT: China’s First Defense - Bodyguards Train to Protect Chinese Interests Abroad

Asian Defense News: DTN News - SPECIAL REPORT:  China’s First Defense - Bodyguards Train to Protect Chinese Interests Abroad

Source: DTN News - - This article compiled by Roger Smith from reliable sources Time
(NSI News Source Info) TORONTO, Canada - January 18, 2013: In sub-zero winter temperatures, these trainees at a derelict army base outside Beijing wake before dawn to practice martial arts and evasive driving. 

It’s all part of preparations to provide security for the growing number of Chinese businesses investing in turbulent regions of Africa and the Middle East. 

Under the instruction of former Portuguese special forces bodyguard Marco Borges, the 40-strong group, most of whom have military backgrounds themselves, take part in a grueling regimen.


*Link for This article compiled by Roger Smith from reliable sources Time 
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DTN News - CHINA NEWS: Giant Chinese Flag Along With Paramilitary Policemen

Asian Defense News: DTN News - CHINA NEWS:  Giant Chinese Flag Along With Paramilitary Policemen

Source: DTN News - - This article compiled by Roger Smith
(NSI News Source Info) TORONTO, Canada - December 31, 2012:  Paramilitary policemen hold their fists and raise a giant flag of Communist Party of China as they attend an oath-taking rally to ensure the safety of the upcoming 18th National Congress of the Communist Party of China (CPC), at a military base in Hangzhou, Zhejiang province November 5, 2012. 

REUTERS/China Daily

*Link for This article compiled by Roger Smith - DTN News
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DTN News - CHINA DEFENSE NEWS: China Builds Its Own Military-Industrial Complex

Asian Defense News: DTN News - CHINA DEFENSE NEWS: China Builds Its Own Military-Industrial Complex

Source: DTN News - - This article compiled by Roger Smith from reliable sources Reuters
(NSI News Source Info) TORONTO, Canada - September 17, 2012:  When China turned to Russia for supplies of advanced weapons through the 1990s, it kick-started Beijing's military build-up with an immediate boost in firepower.

It also demonstrated the failure of its domestic defense sector which was still turning out obsolete 1950s vintage equipment for the People's Liberation Army from a sprawling network of state-owned arms makers.

Now, after more than two decades of soaring military spending, this once backward industry has been transformed -- China is creating its own military-industrial complex, with the private sector taking a leading role.

With Tiananmen-era bans on Western military sales to China still in place, an innovative and efficient domestic arms industry is crucial for Beijing as it assembles a modern military force capable of enforcing claims over Taiwan and disputed maritime territories.

China has locked horns recently with its Southeast Asian neighbors over conflicting claims to strings of islets in the South China Sea. Tensions have also flared with Japan over uninhabited islands in the East China Sea, even as the United States executes a strategic military pivot towards the Pacific.

Well funded defense groups have rapidly absorbed the technology and expertise needed to build complex weapons, freeing China from its former heavy reliance on Russian and other foreign equipment, Chinese and Western experts say.

"A country's defense sector should reflect the strength of the country's economy," says Wu Da, a portfolio manager at Beijing-based Changsheng Fund Management Co Ltd which invests in listed Chinese defense stocks.

But, he adds, the sector is so shrouded in secrecy it's been hard to assess how viable it is.

"Some of the Chinese defense groups are already quite strong after so much military spending in recent years but you don't know exactly how well they are doing financially or technologically because China does not want others to know."

That could start to change.

INJECTING ASSETS

Beijing is enlisting the private sector to accelerate the rise of its best defense contractors, issuing new guidelines in July aimed at encouraging private investment in a sector traditionally sheltered from competition and public scrutiny.

Listed subsidiaries of top Chinese military contractors now intend to buy at least 20 billion yuan ($3.15 billion) in assets from their state-owned parents in the second half, according to their recent filings with the Shanghai and Shenzhen stock exchanges.

This would double the value of military related assets injected into these listed companies since 2007 with more in the pipeline, as Beijing presses ahead with an ambitious program to privatize most of a vast arms industry employing more than a million workers at more than 1,000 state-owned enterprises.

The long term goal is to transform some of the leading contractors, such as China State Shipbuilding Corporation (CSSC), Aviation Industry Corporation of China (AVIC) and China Aerospace Science and Industry Corporation into homegrown versions of American giants Lockheed Martin and Northrop Grumman or Britain's BAE Systems.

AVIC, which is aiming to quadruple its sales to one trillion yuan ($157.7 billion) by 2020 from 250 billion yuan in 2011, plans to inject 80 percent of its main businesses into some of its listed companies by the end of next year.

Beijing has made repeated calls to speed up listings of all but the most sensitive military businesses. The authorities have also promised to allow public bidding for unclassified and minor defense contracts in a sector that is likely to enjoy strong growth if China continues its sustained military build-up.

China's top 10 defense groups with estimated combined assets of 2 trillion yuan ($315 billion) have listed more than 70 subsidiaries, including over 40 with defense-related businesses. About 25 per cent of the assets of the top 10 are now held in the listed companies, according to market analysts.

Some of these stocks have been strong performers. Sustained military outlays and the expectation of asset injections have insulated them from the country's current economic slowdown. They also tend to spike in price at times of increased tension between China and its neighbors over disputed territory.

The plan to buy more of their parent's military related assets would allow these listed companies to raise extra funds for research and development, the companies say.

AVIC subsidiary Hafei Aviation Industry Co Ltd plans to issue shares this year to buy 3.3 billion yuan ($520.5 million) in assets from its parent, including helicopter manufacturing companies.

"AVIC's injection of (its) helicopter business into the listed company will be a key experiment of China's strategic upgrade and transformation of its domestic defense and science industry," Hafei said in a July prospectus.

FALLING MILITARY IMPORTS

The growth of the domestic arms industry has allowed China to steadily reduce military imports. International arms transfer figures from the Stockholm International Peace Research Institute (SIPRI) show China's defense imports fell 58 per cent between 2007 and 2011.

In this period, China slipped to fourth place in the ranks of global arms buyers after holding top position in the five years to 2006.

"The PLA has clearly turned away from acquiring foreign developed platforms," says Scott Harold, a China analyst for the Santa Monica, California-based Rand Corporation.

After double digit, annual increases in outlays over most of the last 20 years, China's military spending is now second only to the United States.

In March, Beijing announced its defense budget for this year would increase 11.2 per cent to $106 billion but some foreign analysts believe this understates the country's overall military budget.

In its annual report on the Chinese military, the Pentagon in May estimated Beijing's total 2012 spending would be between $120 billion and $180 billion. Washington will spend $614 billion on its military this year.

Private data analyst, IHS Jane's Defense Budgets, forecasts that Beijing's annual outlays will reach almost $240 billion by 2015, more than the combined budgets of all nations in the Asia Pacific region and four times Japan's military spending.

About 30 per cent of China's military budget goes to weapons and equipment, according to Beijing's most recent defense White Paper published last year.

CASH OVERCOMES INEFFICIENCIES

Military experts say that alongside reorganization and streamlining launched in the late 1990s, this avalanche of cash has sharply improved the output from key sectors of the Chinese defense industry despite the inefficiencies of many big state-owned companies, widespread corruption and a lack of official or public oversight.

"There is just something about money, and the more of it the better," says Rand Corp's Harold.

Russian weapons, including Su-27 fighters, Kilo-class submarines and Sovremenny-class cruisers, remain some of the PLA's most potent hardware.

However, some Chinese-made equipment is now thought to be comparable to their Russian or Western counterparts, military experts say, although they acknowledge that accurate information about the performance of PLA weapons remains scarce.

Over the last decade, China has launched two classes of locally designed and built conventional submarines that are now the mainstays of the PLA's underwater fleet.

It has also built versions of the Su-27 combat aircraft and begun mass production of its J-10 fighter that some experts rank with the U.S.-made F-16 in performance. China reportedly has developed its first stealth fighter, the J-20, but details of its capabilities remain unclear.

Chinese factories also appear to have made rapid progress in developing a range of advanced missiles. These include up to 1,000 ballistic and cruise missiles deployed against Taiwan and new mobile launchers for the PLA's nuclear weapons.

Even in more basic equipment, China's arms industry appears to have made significant improvements. In little over a decade, shabby uniforms and poor quality footwear have been replaced with smart, comfortable looking camouflage uniforms, lightweight helmets and solid combat boots.

Ground troops carry new assault rifles and small arms, while modern tanks, armored personnel carriers and artillery have been introduced to replace equipment derived from Soviet designs of the 1950s.

Arms trade experts conclude that China's factories are now capable of satisfying most of the PLA's needs - and that of other nations as well.

In the 10 years to 2011, China's foreign military sales increased 95 per cent, making it the sixth largest arms supplier behind the UK, SIPRI figures show. Sales of jet fighters, warships and tanks to political ally Pakistan, however, account for much of this increase.

TECHNOLOGY WEAKNESS

Despite clear progress, some glaring weaknesses remain in Chinese defense technology, military experts say.

The PLA still appears reliant on imports of high performance jet engines from Russia for its most advanced fighters despite decades of research and development aimed at developing local power plants.

It also depends on dual-use, imported engine technology from Europe for its warships, submarines and armored vehicles.

Domestic aerospace companies have so far been unable to build big military transport aircraft that are important for military mobility in a country as big as China. These companies also remain heavily dependent on European, U.S. and Russian designs and technology for locally built helicopters.

Beijing is pinning its hopes on competitive market forces to help close these gaps as it continues its military spending spree.

That means more business for listed arms makers such as China Shipbuilding Industry Ltd which raised 8 billion yuan ($1.26 billion) in May from a convertible bond issue to buy military assets from its parent, the giant China Shipbuilding Industry Corp.

"With the construction of our country's navy steadily pushed forward, we expect our company's income from defense business to keep increasing," the company said in a May stock exchange statement.

(Editing by Bill Tarrant)

*Link for This article compiled by Roger Smith from reliable sources Reuters
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