Whatever the outcome, the main upshot of all this is that the Russians will be able to further cement their central position in the Chinese market: indeed the word on the street at the moment is that Beijing is already talking to its neighbor about the possibility of co-developing an AEW system. Israel, in the meantime, will have to look for another buyer for its Phalcon equipped plane. (Fortunately, it looks like the Indian are ready to step in and take if off the hands of policy makers in Beijing). Those European arms manufacturers who had set their heart on doing business in China may start to look at Taiwan with renewed interest, even though previous attempts to explore deals with the island have prompted a stern response from China.
Damon Bristow is Head of the Asia Programme at the Royal United Services Institute for Defence Studies in Whitehall, London.
RSS