China wants to keep increasing its influence in Southeast Asia. It does not have many friends in this part of the world. If at all, every ASEAN country is an enemy of the Communist nation. There is one exception though.
Thailand seems to be in a mood to get comfortable with China. It is for this reason that Thailand is desperately wanting to get its hands on Chinese-manufactured submarines.
But here’s the deal: China now finds it impossible to manufacture any submarines.
The obvious question here would be, why?
Why can China not manufacture submarines? The answer is Germany. Berlin has proven to be a massive hurdle for China’s neo-colonial ambitions ever since former Chancellor Angela Merkel’s regime was replaced by another one that views China as a “systemic rival”.
Germany has refused to sell submarine engines to China. Now, it’s clear that China cannot make its engines – neither aircraft nor submarines. In the absence of Germany’s submarine engines, China’s ties with Thailand are facing a potential upset.
China has committed to supply Thailand with several submarines. Deliveries were expected to begin in 2024. Now, those plans lie scattered all over the place. According to the South China Morning Post, state-owned conglomerate China Shipbuilding & Offshore International C. (CSOC) signed an agreement with Thailand’s Navy in 2017 for the submarine. The Thai navy said the deal was a government-to-government type, however, it bypassed any approval from the military-backed appointed parliament or the office of the auditor general.
Now, according to deputy Pheu Thai Party leader Yutthapong Charasathian, China is all set to replace the German engine with a Chinese-made one after the German manufacturer refused to sell the engine to China. The Chinese would, therefore, be acting in contrast to what the deal between Thailand’s navy and CSOC stipulates. According to the deal, Thailand has made a strict demand for German engines only.
However, Angela Merkel’s exit as Chancellor has ruined China’s plans of selling its substandard submarines to Thailand. Under the contract, the S26T Yuan-class submarine must be powered by engines supplied by the German firm MTU.
Now, Germany has placed an embargo on the transfer of defence technologies to China. Without the explicit approval of the government, no German entity can sell defence equipment and technologies to China. Speaking to the same effect, Philipp Doert, Germany’s Federal Military Attaché to Thailand said, “The export was refused because of its use for a Chinese Military/Defence industry item. China did not ask/coordinate with Germany before signing the Thai-China contract, offering German MTU engines as part of their product.”
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Without German engines, China simply loses the ability to manufacture desirable submarines. Had Chinese engines been an acceptable replacement, Thailand would have taken deliveries of the submarines without a fuss. Yet, the Thai Navy knows how everything that is made in China, using Chinese technologies, is a liability instead of being an asset.
Now, the Thai Navy is saying that Germany’s embargo policy was “the problem that China needed to sort out”. China now finds itself in a very difficult and embarrassing position.