Sat, Sep 27, 2003 - Page 1 News List

China is No. 1 weapons importer

REUTERS , WASHINGTON

China ordered US$3.6 billion worth of conventional arms last year, cementing its position as the developing world's No. 1 weapons importer, according to a US Congressional Research Service report made available on Thursday.

South Korea ranked second with US$1.9 billion in orders followed by India, with US$1.4 billion, and Oman, with US$1.3 billion, said the authoritative, annual report titled Conventional Arms Transfers, 1995-2002.

The US once again grabbed the lion's share of deals with developing countries last year with nearly US$8.6 billion, or 48.6 percent, followed by Russia, with US$5 billion, or 28.3 percent, the survey said.

France ranked third with US$1 billion or 5.3 percent of such agreements.

Cumulatively, China was the developing world's top arms buyer throughout the period tracked. From 1995 to last year, the total value of Beijing's orders totaled US$17.8 billion in current dollars, it said.

The United Arab Emirates was second during the same period with US$16.3 billion in orders, including a US$6.4 billion deal with the US in 2000 for 80 Lockheed Martin Corp-built F-16 fighter jets. India was third overall, with US$14.1 billion.

"This increase reflects the military modernization effort by China in the 1990s, based primarily on major arms agreements with Russia," wrote Richard Grimmett, the report's author.

China has become the "centerpiece" of Russia's arms exports, buying at least 72 Su-27 fighters since 1996 along with two Sovremenny-class destroyers, associated missiles and four Kilo-class attack submarines, said the report.

Beijing, using its market leverage, has prodded Moscow to let it produce weapons under license in recent years in a development that will ultimately curb China's reliance on Russian imports, Grimmett said in a telephone interview.

Arms orders, 1995-2002

1. China

17.8bn

2. UAE

16.3bn

3. India

14.1bn

4. Egypt

12.9bn

5. Saudi Arabia

10.7bn

6. Israel

10bn

7. South Korea

8.7bn

8. South Africa

5.2bn

9. Malaysia

4.9bn

10. Pakistan

4.7bn

Source: Congressional Research Service


"At some point the Chinese are going to have acquired sufficient capability on their own to build these things without the Russians' assistance," he said.

Last year, Russia agreed to supply China eight Kilo-class project 636 submarines for US$1.6 billion, its most advanced diesel submarine, the report said. China also exercised options for two more Sovremenny-class destroyers and additional S300 PMU-2 surface-to-air missile systems, the survey said.

In an annual report to Congress on China's military, the US Department of Defense said on July 30 the chief driver behind China's military modernization was a perceived need to prepare "credible military options" to complicate US intervention in any conflict over Taiwan.

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