Wednesday, September 19, 2012

DTN News - CHINA DEFENSE NEWS: Two Models of Chinese 5th-Gen Fighter In Works (PHOTOS)

Asian Defense News: DTN News - CHINA DEFENSE NEWS: Two Models of Chinese 5th-Gen Fighter In Works (PHOTOS)
Source: DTN News - - This article compiled by Roger Smith from reliable sources RT
(NSI News Source Info) TORONTO, Canada - September 19, 2012: The Chinese military has leaked first photos of a brand new lightweight fighter with external characteristics that allow the jet fifth-generation attribution. Some pictures suggest it could be used on future Chinese aircraft carriers.


Shenyang Aircraft Industry Group (SAC), one of the leading aircraft design and manufacturing corporations of China’s aviation industry, has rolled out a prototype that might eventually become Chinese analogue to America’s F-35.
The aircraft bears a certain resemblance to Lockheed Martin’s F-35 Lightning II, and even reportedly has the codename F-60. Though absolutely no characteristics of the prototype have been unveiled, one major difference is obvious: unlike its American relative, China’s F-60 has two engines.
The pictures of the Chinese technology demonstrator suggest that the engines the aircraft is currently equipped with do not have thrust vectoring nozzles which might suggest the prototype is at too early a stage of testing to get more sophisticated and powerful propulsion package.
Inclined twin vertical tail and wide-spaced ram air inlets are reminiscent of Lockheed Martin’s F-22 Raptor Joint Strike Fighter.
A blurred photo from China Military Report website is the only proof that SAC’s F 60 aircraft has successfully been airborne.
The suspected photo of China′s SAC F 60 fighter test flight. (Image from http://wuxinghongqi.blogspot.com)
The suspected photo of China's SAC F 60 fighter test flight. (Image from http://wuxinghongqi.blogspot.com)
Now it has become obvious that in the race for possession of fifth generation aircraft the Chinese military placed its bets on two horses: Chengdu Aircraft Corporation, which is heavily testing its J-20 “Mighty Dragon” fifth generation heavy fighter-bomber, and Shenyang Aircraft Industry Group with its F-60 lightweight fighter.
The F-60 prototype jet bears the side number 31001, which may be a reference to Chengdu’s J-20 heavy fighter jet. The first two J-20 prototypes have “2001” and “2002” side numbers respectively.
Yet, the F-60 and J-20 are not likely to be regarded as competitors because it appears the aircraft will have different specializations.

China’s future sea-based fighter jet

China’s first aircraft carrier, dubbed Shi Lang, laid down by the Soviet Union in the late 1980s and almost finished now by Chinese engineers, is expected to be put into service by the end of 2012. Still, Beijing has informed the warship will be not ready for action till 2017.
A vessel reported to be the Ukrainian-made aircraft carrier "Varyag", which China bought in the 1990s, is seen at a port in Dalian, Liaoning province. (Reuters/Jacky Chen )
A vessel reported to be the Ukrainian-made aircraft carrier "Varyag", which China bought in the 1990s, is seen at a port in Dalian, Liaoning province. (Reuters/Jacky Chen )
The People’s Liberation Army Air Force (PLAAF) already has fighter jets to form the aircraft wing for Shi Lang. China produces J-15, a copycat of the Soviet-made Su-33. The J-15 copycat has been made by Shenyang Aircraft Industry Group. But the Su-33 was designed in the 1980s and cannot be regarded a proper sea-based aircraft in the 2010s. Probably since SAC already proved it can make a sea-based aircraft, Beijing commissioned a great challenge of creating a fifth generation fighter jet for naval use to this corporation.
Chinese Military Review website has published computer-generated images of the F-60 fifth generation fighter jet in action with a whole range of various air to air missiles. On at least two pictures the aircraft is depicted with an extended arrest hook that the sea-based aircraft use to stop after landing on the deck of an aircraft carrier.

Computer-generated imagery (CGI) of the J-31/ F-60 fifth generation fighter jet in action with beyond visual range (BVR) air to air missiles and fifth generation short range infrared homing air-to-air missiles. (Image from http://chinesemilitaryreview.blogspot.com)
The two-wheeled front rack chassis of the real F-60 prototype also suggests the aircraft is being engineered for naval use, like sea-based versions of Dassault’s Rafale in France, Lockheed Martin’s F/A-18 E/F Super Hornet and the Soviet-made Su-33. At the same time there are no signs the prototype is capable of short take off and vertical landing, which the F-35B STOVL version has.
A brief look at the computer-generated images also exposes another feature the F-60 has in common with Lockheed Martin’s F-35 Lightning II: an extremely limited space in the internal weapon bays. A stealth aircraft must have all of its weapons hidden inside the hull to decrease the aircraft’s visibility to enemy radars. The Chinese F-60, just like the American F-35, can only carry small-sized short range missiles in true stealth mode.
To get seriously armed the F-60 would have to carry long-range missiles externally, which would nullify its stealth capabilities. If so, the F-60 will have limited capabilities.
Probably the biggest problem of the modern Chinese aviation industry is the deadlock with military jet engines it currently finds itself in. For both Chengdu’s J-20 and Shenyang’s F-60 there are no reliable Chinese-made jet engines with technical characteristics appropriate for a fifth generation fighter. Still, Chinese engineers are known not only for copycat efforts, but for outstanding persistence in achieving their objectives. 
It cannot be altogether excluded that by 2017, when the Shi Lang aircraft carrier will be commissioned and more warships of the kind be under construction, Chinese engineers will probably decrease or eliminate the dependence on Russian jet engines and spare parts and put the F-60 on a proper flight.

Computer-generated imagery (CGI) of the J-31/ F-60 fifth generation fighter jet in action with beyond visual range (BVR) air to air missiles and fifth generation short range infrared homing air-to-air missiles. (Image from http://chinesemilitaryreview.blogspot.com)

*Link for This article compiled by Roger Smith from reliable sources RT
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*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News Contact:dtnnews@ymail.com 
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DTN News - INDIA DEFENSE NEWS: FGFA – Fifth Generation Fighter Aircraft Sukhoi T-50 Quantum Leap For Indian Aerospace

Asian Defense News: DTN News - INDIA DEFENSE NEWS: FGFA – Fifth Generation Fighter Aircraft Sukhoi T-50 Quantum Leap For Indian Aerospace
*The signing of the Sukhoi T-50 fifth generation fighter aircraft contract propels India to joint developer of the world’s most advanced stealth aircraft
Source: DTN News - - This article compiled by Roger Smith from reliable sources Rakesh Krishnan Simha - Russia & India Report
(NSI News Source Info) TORONTO, Canada - September 19, 2012: Two significant developments have stirred up the world of military aviation this year. In March, the U.S. Air Force revealed it had started work to field a new Long Range Strike Bomber by the 2020s. This will be first new American strategic bomber to be built after the Cold War.

How much the global balance of power has shifted since the Cold War days was clear when it was revealed that the aircraft the American bomber might encounter in the skies will have a large Indian signature – in more ways than one. In August, the Indian Air Force announced that India and Russia are getting set to ink the final R&D contract for the Sukhoi T-50 fifth generation fighter aircraft (FGFA) by the end of the year or early-2013. The contract is worth more than US$ 11 billion, and according to the terms of the agreement both countries will share 50 percent of the costs.

That the FGFA would fly was never in doubt. (To meet its air defence requirements, Russia was committed to the T-50 but as the American F-35 programme has demonstrated, having partners translates into assured orders.) The only uncertain component of the programme was the extent of Indian participation. In the past couple of years there was a lot of speculation – and derisive comments – about India’s involvement. Sceptics felt it was limited to merely offering suggestions as to what the IAF wanted – such as two seats or one – while the more charitable ones believed India’s contributions would be in avionics and software.

The IAF chief’s visit to Moscow last month finally lifted the veil of secrecy about India’s participation in the world’s most eagerly awaited fighter aircraft. It is now clear that Hindustan Aeronautics Ltd’s Ozar facility at Nashik in western India will get three prototypes in 2014, 2017 and 2019, and they will be flown by Indian test pilots.

India moves into the big league

What defence observers have missed is that the FGFA is a quantum leap for India’s armaments industry, especially HAL. After decades of dabbling in joint production – a euphemism for screwdriver technology – India’s aerospace sector will finally step up to joint development.

This will catapult India to a new level where it will finally be able to develop advanced stealth aircraft on its own. Not even America’s leading partners in the F-35 Joint Strike Fighter programme, such as Turkey or the UK, have access to such red hot technology. Instead of being a sidekick, India will be a joint partner in a leading military project.

Russia has already given the draft R&D contract to HAL. It will include the cost of designing, infrastructure build-up at Ozar, prototype development and flight testing. India will soon have scientists and test pilots based both in Russia and Ozar during the R&D phase up to 2019.

An IAF official told Jane’s that the jointly developed aircraft “draws upon the basic structural and system design of the Russian FGFA technology demonstrator with modifications to meet the IAF specifications, which are much more stringent”.

The IAF is hopeful production fighters will roll out of the factory gates by 2022. Up to 250 of these aircraft will be inducted at an estimated cost of $35 billion. Russia will buy a similar number. While it is never easy to place a price tag on such a constantly evolving platform, the IAF estimates the cost per plane at $100 million. The total cost, including options and the value of production aircraft, will make this the biggest defence programme ever in India’s history.

Potent threat

Although the T-50’s specifications remain classified, reports indicate it features advanced stealth capability and supersonic cruising speed. Here is what Air Power Australia says: “The stealthy T-50, albeit in an early phase of development, is showing naked air combat power in the form of extreme plus agility and persistence that, with the addition of advanced sensors, countermeasures and weapons, will likely soundly defeat the F-22 Raptor but will certainly annihilate the F-35 and the Super Hornet.”

This is an explosive statement but coming from ace aircraft experts, the FGFA portends a scary decade ahead for Western air defences and pilots.

Tuning the T-50

Clearly, the designers aren’t sitting idle. A series of developments suggests the FGFA has achieved irresistible propulsion. According to the website of Russia’s United Aircraft Group, which owns the Sukhoi bureau, the company has tested three T-50 prototypes in various modes, totalling around 180 sorties, including aerial refuelling hook-ups with a Russian Air Force Il-78 tanker, AESA radar scans, and large angle of attack and super manoeuvrability test flights.

Carlo Kopp of Air Power Australia and legendary aircraft analyst Bill Sweetman wonder whether the current T-50 represents the definitive configuration. “Today's round nozzles and the curvature of the aft nacelles are not at first glance stealth-optimised, and the engine is not fully masked head-on by the inlet duct,” they write in an article in Aviation Week.

To be sure, those are exactly the areas India and Russia will be working on in the months and years ahead. The IAF, for instance, has specified more than 40 improvements to the design following its observation of flying trials.

For instance, in the early stages of the programme, the IAF was keen on a two-seater fighter bomber, and in fact indicated a requirement for at least 166 single-seat and 48 twin-seat aircraft. But since then it has jettisoned that demand will go in for only single-seat jets now. The reason is that a second cockpit will compromise the stealth capabilities by at least 15 percent, apart from adding to the weight and reducing fuel capacity.

Exploring exports

Unlike the dollar-guzzling F-35 which perhaps wouldn’t fly without exports, the T-50 remains viable because of lower development costs and large pre-orders from Russia and India. Still exports can’t hurt. According to the IAF, the broad scope of bilateral cooperation during the joint project covers the design and development of the aircraft, its production and joint marketing to other countries.

The Centre for the Analysis of Strategies and Technologies (CAST), a Moscow-based independent defence and foreign policy think-tank, says that while India will be the first FGFA export customer, Vietnam will be probably its second buyer. CAST Director Ruslan Pukhov believes every third user of the Su-27/30 family of aircraft could be a customer for the FGFA.

Russia’s legacy

For both Russia and India the FGFA programme will be a bold new gambit, as it will overshadow even the highly successful BrahMos missile project. For, while BrahMos is also a 50:50 India-Russia venture, it is basically India’s baby; Russia has turned down an offer to buy the missile as it has the equally capable Club.

However, the FGFA programme could be a template for further defence cooperation between India and Russia. As its economy grows, India is increasingly seeking quality armaments for its armed forces and is keen to wean itself away from imports. Russia on the other hand has the knowhow and experience to produce highly capable weapons platforms. Together, they can ensure that legacy remains intact.


*Link for This article compiled by Roger Smith from reliable sources Rakesh Krishnan Simha - Russia & India Report
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*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News Contact:dtnnews@ymail.com 
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DTN News - ISRAEL DEFENSE NEWS: IDF Launches Surprise Live-Fire Drill In Golan

Asian Defense News: DTN News - ISRAEL DEFENSE NEWS: IDF Launches Surprise Live-Fire Drill In Golan 
*Exercise in Golan Heights aims to test army readiness and fitness in North and Central Commands, Artillery Corps
Source: DTN News - - This article compiled by Roger Smith from reliable sources By Yaakov Lappin - Jerusalem Post

(NSI News Source Info) TORONTO, Canada - September 19, 2012: The IDF launched a surprise drill early Wednesday morning on the Golan Heights.

Units were scrambled to the North without warning following an order was given by IDF Chief of Staff Lt.-Gen. Benny Gantz.

The exercise is aimed at testing the fitness and readiness of several IDF units, with the Artillery Corps taking up center stage.

The Air Force has joined units from the IDF's Northern and Central Commands to take part in the drill. Other military forces are also taking part.

The exercise will end with a live fire exercise on Wednesday afternoon.

"This drill is part of a routine program of checks and surprise exercises held throughout the year by the IDF Comptroller. It is being held under the command of Brig.-Gen. Roee Riptin, who is the chief artillery officer," the IDF Spokesman's Unit said.

Sources in the IDF said the drill was planned ahead of time, and that it should not be seen as a sign of a change in the level of alert.

It comes on the heels of a major Golani Brigade infantry and Armored Corps drill, which was was jointly held in the Golan Heights over recent weeks.


Related News from Haaretz

*IDF Launches Surprise Live-Fire Drill In Golan Heights

The drill, to include Northern Command, Central Command, and Air Force troops, is meant to test the IDF’s readiness for an ‘emergency situation.

The Israel Defense Forces General Staff launched a comprehensive surprise drill on Wednesday, which will include the airlifting of forces to the Golan Heights and a live fire exercise, set to take place later in the evening.

IDF Chief of Staff Lt. Gen. Benny Gantz notified the units involved in the drill overnight, as the drill is meant to test the level of preparation of various units, including the Northern Command, Central Command, Air Force, and others.

The units involved specialize in offensive firepower, and for this reason they were chosen to participate in the drill, meant to test their readiness for an emergency situation.

The drill itself is expected to end in the evening, and is being overseen by the IDF’s Chief Artillery Officer, Brig. Gen. Roei Riftin, and is part of IDF efforts to examine the quality of operations, led by the IDF comptroller.

The drill was planned ahead of time and does not suggest the IDF has raised its level of preparation. However, such a test of the IDF’s ability to move a large number of forces from the Central Command to the Golan Heights, by way of helicopters, and to hold a comprehensive live-fire drill, examines the IDF’s ability to launch a serious military operation or even go to war.

A similar surprise drill was held on Yom Kippur Eve last year, involving two IDF divisions, which focused on testing the level of preparation for reserve units for emergency call-ups. Last year’s drill involved the emergency call-up of two reserve combat companies from the Central Command. Then, an IDF official said that holding the drill right before Yom Kippur was “more than a coincidence.”

Last week, the IDF began work on reinforcing the fence on the Israel-Syria border in the Golan Heights. Plans drafted by the IDF Northern Command call for placing dozens of new information-gathering sensors along the fence, electrifying parts of it so that it will warn of intruders, and laying mines along parts of the border.

Over the years, severe weather in the Golan Heights has battered the fence to the point where in certain places, it barely exists.

The Northern Command's main concern is the possibility that terrorists will try to launch a cross-border attack on IDF soldiers or on Israeli communities in the Golan. The army's assumption is that the deteriorating situation in Syria is liable to lead to an increase in terrorist activity near the border. Army sources said the volume of attempts to penetrate the border has already increased.


*Link for This article compiled by Roger Smith from reliable sources By Yaakov Lappin - Jerusalem Post
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*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News Contact:dtnnews@ymail.com 
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Tuesday, September 18, 2012

DTN News - AFGHAN WAR NEWS: Female Car Bomber Kills 12 In Kabul

Asian Defense News: DTN News - AFGHAN WAR NEWS: Female Car Bomber Kills 12 In Kabul
*Revenge for an anti-Islam film made in America
Source: DTN News - - This article compiled by Roger Smith from reliable sources by Sardar Ahmad  Agence-France Presse
(NSI News Source Info) TORONTO, Canada - September 18, 2012: A female suicide car bomber attacked a van in Kabul Tuesday, killing 12 people, including eight South Africans, in an assault insurgents said was in revenge for an anti-Islam film made in America.

The bombing on a highway leading to Kabul international airport was the second suicide attack in the heavily fortified city in 10 days, reviving questions about stability as NATO accelerates a troop withdrawal and hands over to Afghan forces by the end of 2014.
It came as officers revealed that Western troops are scaling back joint operations with Afghans after 51 NATO soldiers were shot dead this year by their local colleagues, a setback for the war strategy that focuses on training Afghans to take over.
An AFP photographer saw at least six bodies lying among the wreckage of a gutted minivan, and another vehicle destroyed by flames still burning in the middle of the highway, with debris flung all around.
"At around 6:45 am (0215 GMT) a suicide bomber using a sedan blew himself up along the airport road in District 15. As a result, nine workers of a foreign company and three Afghan civilians are dead, and two police are wounded," police said in a statement.
An Afghan and a Western security official said nine foreigners were killed. The South African foreign ministry said eight of its citizens were among the dead.
"The foreigners were from a private company working at the airport," the Afghan official told AFP, speaking on condition of anonymity.
A spokesman for NATO's US-led International Security Assistance Force (ISAF) said it had no reports that its personnel were among the casualties.
Afghanistan's second largest insurgent group, Hezb-i-Islami, claimed responsibility, saying it was carried out by a woman to avenge the "Innocence of Muslims" film, which has sparked a weekof furious anti-US riots across Asia, North Africa and the Middle East.
"The bombing was carried out by a woman named Fatima. The bombing was in retaliation for the insult to our Prophet," spokesman Zubair Sidiqi in a telephone call to AFP from an undisclosed location.
It is extremely rare for the faction to claim a suicide attack in Afghanistan. It is also rare for women, few of whom drive in Afghanistan, to carry out suicide attacks.
A police investigator said he believed the bomber was female, after finding parts of a woman's leg.
On Monday, protests turned violent for the first time in Afghanistan over the low-budget trailer for the film, which is believed to have been produced by extremist Christians, as hundreds hurled stones at a US military base and clashed with police.
In the northern city of Kunduz, several hundred university students threw stones at police and set fire to photographs of US President Barack Obama in a fresh protest on Tuesday.
Under new orders, most joint patrols and advisory work with Afghan troops -- the cornerstone of NATO departure plans -- will have to be approved by a regional commander.
Cooperation with smaller units will have to be "evaluated on a case-by-case basis and approved by RC (regional) commanders", ISAF said in a statement.
NATO, which is helping the Afghan government fight a Taliban-led insurgency now in its 11th year, is gradually withdrawing its 112,600 remaining troops.
But as so-called insider attacks have grown, US commanders have gradually acknowledged the assaults pose a serious threat to the war effort and have struggled to stem the problem.
The commander of US and NATO troops in Afghanistan, General John Allen, "has directed all operational commanders to review force protection and tactical activities in the light of the current circumstances", a US military officer in Washington said in an email.
Defense Secretary Leon Panetta, speaking at a news conference in Beijing, said the attacks were worrisome but that he believed Allen had taken the right approach to counter the problem.
But he insisted the insider assaults would not delay or derail plans to complete a drawdown of troops by the end of 2014 as planned.
The decision came after six ISAF soldiers were shot dead by suspected Afghan police and after the Taliban destroyed six US fighter jets in an unprecedented assault on a major base in the south this weekend.
It was unclear how the new rules for joint patrols might affect the plan to pull out the bulk of NATO combat forces, as some Afghan units are considered ill-prepared to begin operating independently.
Afghanistan police and officials investigate the site of a suicide attack in Kabul on September 18, 2012. A suicide bomber blew himself up alongside a minivan carrying foreigners on a major highway leading to the international airport in the Afghan capital, police said, killing at least 12 people, including nine foreigners.
Map locating Kabul where at least 12 people were killed in a suicide attack on Tuesday
Supporters of Lebanon's Hezbollah group hold signs during a rally in Beirut to denounce a film mocking Islam on September 17, 2012. An eruption of Muslim anger over a trailer of the American-made film that appeared on the Internet has spread across the world, taking hold in Pakistan, Afghanistan, Indonesia, the West Bank, the Philippines and Yemen.
A Pakistani activist from Islami Jamiat-e-Talaba, a student wing of the hard line Sunni party Jamaat-e-Islami (JI), throws a tear gas shell towards the police near the US consulate during a protest against an anti-Islam movie in Karachi.
Lebanon's Hezbollah chief Hassan Nasrallah addresses thousands of supporters who took to the streets of southern Beirut to denounce a film mocking Islam on September 17, 2012. Nasrallah, who made a rare public appearance, has called for a week of protests across the country over the low-budget, US-made film, describing it as the "worst attack ever on Islam."

*Link for This article compiled by Roger Smith from reliable sources by Sardar Ahmad  Agence-France Presse 
*Speaking Image - Creation of DTN News ~ Defense Technology News 
*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News Contact:dtnnews@ymail.com 
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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
*Speaking Image - Creation of DTN News ~ Defense Technology News 
*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News Contact:dtnnews@ymail.com 
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