Archive for ‘Defence’

21/04/2019

How much of Europe does China own?

Shipping containers at PiraeusImage copyrightAFP
Image caption China now has a majority stake in the Greek port of Piraeus

The European Union has introduced a new mechanism for screening foreign investment.

It’s widely believed to have been prompted by concerns over China’s economic ambitions in Europe.

It will allow the European Commission – the EU’s executive arm – to give an opinion when an investment “threatens the security or public order” of more than one member state or undermines an EU-wide project such as the Galileo satellite project.

In March, the European Commission called China a “systemic rival” and a “strategic competitor”.

The Chinese Ambassador to the EU urged the bloc to remain “open and welcome” to Chinese investment, and not to “discriminate”.

How much foreign investment is in the EU?

China’s ownership of EU businesses is relatively small, but has grown quickly over the past decade.

A third of the bloc’s total assets are now in the hands of foreign-owned, non-EU companies, according to a report from the European Commission in March.

Of these, 9.5% of companies had their ownership based in China, Hong Kong or Macau – up from 2.5% in 2007.

That compares with 29% controlled by US and Canadian interests by the end of 2016 – down from nearly 42% in 2007.

So, it’s a significant increase, but the total amount is not huge, comparatively speaking.

China in the EU

Foreign direct investment into the 28 member stAlthough the levels of Chinese foreign direct investment in the EU have been increasing rapidly, it peaked at €37.2bn in 2016 amidst a slowdown in Chinese investment globally, according to the Rhodium Group and the Mercator Institute for China Studies.

In European countries outside the EU, investment also dropped in 2018.

What and where is China investing?

A large proportion of Chinese direct investment, both state and private, is concentrated in the major economies, such as the UK, France and Germany combined, according to the Rhodium Group and Mercator Institute.

Chinese investment by top EU countries

Analysis by Bloomberg last year said that China now owned, or had a stake in, four airports, six maritime ports and 13 professional soccer teams in Europe.

It estimated there had been 45% more investment activity in 30 European countries from China than from the US, since 2008.

And it said this was underestimating the true extent of Chinese activity.

What about infrastructure?

In March, Italy was the first major European economy to sign up to China’s new Silk Road programme – known as the Belt and Road Initiative (BRI).

It involves huge infrastructure building to increase trade between China and markets in Asia and Europe.

Officially more than 20 countries in Europe (including Russia) are part of the initiative.

For example, China is financing the expansion of the port of Piraeus in Greece and is building roads and railways in Serbia, Montenegro, Bosnia-Herzegovina and North Macedonia.

This could prove attractive to poorer Balkan and southern European countries, especially as demands for transparency and good governance can make EU funding appear less attractive.

However, analysts point out that Chinese loans come with conditions – such as the involvement of Chinese companies – and also risk burdening these countries with large amounts of debt.

Will Chinese investment grow?

Globally, China’s outward direct investment has slowed over the last year or two, after more than a decade of expansion.

“This is mainly the result of stricter controls on capital outflows from China, but also of a changing political environment globally concerning Chinese investment,” says Agatha Kratz of the Rhodium Group.

China’s global investment slows

The Trump administration is taking a tougher line towards China’s economic activities.

Governments elsewhere are more cautious – particularly when it comes to investment in sensitive areas of the economy, such as telecommunications and defence.

But there’s little doubt China is now a significant player in Europe, whether through direct investments or via the new Silk Road project.

Source: The BBC

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09/03/2019

China to expand mixed ownership reform to more than 100 SOEs

BEIJING, March 9 (Xinhua) — China will expand the mixed ownership reform to more than 100 state-owned enterprises (SOEs), an official with the country’s state-asset regulator said Saturday.

“There will be more than 100 SOEs in the fourth batch of mixed ownership reform, which will be pushed ahead in key areas,” Xiao Yaqing, head of the State-owned Assets Supervision and Administration Commission of the State Council, said at a press conference on the sidelines of the annual legislative session.

Since 2016, China has selected 50 SOEs in three batches to conduct the pilot reform in fields including power, energy, civil aviation, telecommunications, and defence.

The first three batches have done a good job in exploring and experimenting with the means, equity ratio and governance structure of mixed ownership, Xiao said.

Next, China will create a sound environment for the reform so that enterprises of all kinds of ownership can realize integrated and common development, he added.

Source: Xinhua

07/03/2019

In sensitive year for China, warnings against ‘erroneous thoughts’

BEIJING (Reuters) – China’s ruling Communist Party is ramping up calls for political loyalty in a year of sensitive anniversaries, warning against “erroneous thoughts” as officials fall over themselves to pledge allegiance to President Xi Jinping and his philosophy.

This year is marked by some delicate milestones: 30 years since the bloody crackdown on pro-democracy demonstrators in and around Tiananmen Square; 60 years since the Dalai Lama fled from Tibet into exile; and finally, on Oct. 1, 70 years since the founding of Communist China.

Born of turmoil and revolution, the Communist Party came to power in 1949 on the back of decades of civil war in which millions died, and has always been on high alert for “luan”, or “chaos”, and valued stability above all else.

“This year is the 70th anniversary of the founding of new China,” Xi told legislators from Inner Mongolia on Tuesday, the opening day of the annual meeting of parliament. “Maintaining sustained, healthy economic development and social stability is a mission that is extremely arduous.”

Xi has tightened the party’s grip on almost every facet of government and life since assuming power in late 2012.

ROOTING OUT DISLOYALTY

The party has increasingly been making rooting out disloyalty and wavering from the party line a disciplinary offence to be enforced by its anti-corruption watchdog, whose role had ostensibly been to go after criminal acts such as bribery and lesser bureaucratic transgressions.

The graft buster said last month it would “uncover political deviation” in its political inspections this year of provincial governments and ministries.

Top graft buster Zhao Leji, in a January speech to the corruption watchdog, a full transcript of which the party released late February, used the word “loyalty” eight times.

“Set an example with your loyalty to the party,” Zhao said.

China has persistently denied its war on corruption is about political manoeuvring or Xi taking down his enemies. Xi told an audience in Seattle in 2015 that the anti-graft fight was no “House of Cards”-style power play, in a reference to the Netflix U.S. political drama.

The deeper fear for the party is some sort of unrest or a domestic or even international event fomenting a crisis that could end its rule.

Xi told officials in January they need to be on high alert for “black swan” events..

That same month the top law-enforcement official said China’s police must focus on withstanding “colour revolutions”, or popular uprisings, and treat the defence of China’s political system as central to their work.

The party has meanwhile shown no interest in political reform, and has been doubling down on the merits of the Communist Party, including this month rolling out English-language propaganda videos on state media-run Twitter accounts to laud “Chinese democracy”. Twitter remains blocked in China.

The official state news agency Xinhua said in an English-language commentary on Sunday that China was determined to stick to its political model and rejected Western-style democracy.
“The country began to learn about democracy a century ago, but soon found Western politics did not work here. Decades of turmoil and civil war followed,” it said.
Source: Reuters
26/02/2019

‘No-go zone’ in Yellow Sea for Chinese aircraft carrier sea trials

  • Liaoning has just undergone a nine-month revamp
  • Flight system of new warship the Type 001A expected to be put to test

‘No-go zone’ in Yellow Sea for Chinese aircraft carrier sea trials

26 Feb 2019

China’s first domestically built aircraft carrier, the Type 001A, will undergo major tests as it enters the final phase of preparations before it is commissioned. Photo: Reuters
China’s first domestically built aircraft carrier, the Type 001A, will undergo major tests as it enters the final phase of preparations before it is commissioned. Photo: Reuters

China has announced a “no-go zone” in the Yellow Sea while sea trials are carried out for two of its aircraft carriers – the Liaoning, which has just been upgraded, and its first domestically built carrier.

The Liaoning Maritime Administration said there would be no entry to the area off China’s northeast coast from Sunday to March 6, and it would be used for “military purposes”.

State media reported that the Liaoning, which was commissioned in 2012, left the Dalian shipyard on Sunday after nine months of maintenance and modifications. Photos showed a banner where the warship was docked reading “Congratulations to the Liaoning on its new mission”.

China’s first aircraft carrier may become test bed for top flight electromagnetic warplane launcher.
Meanwhile, the Type 001A aircraft carrier, which was built at the same shipyard, is expected to undergo major tests at sea as it enters the final phase of preparations before it is commissioned.
Naval expert Li Jie said the Liaoning would probably also undergo testing, but he expected the no-go zone would mainly be for the Type 001A, especially to put its flight system to the test.

“This vessel will soon enter service and in preparation for that it has to go through a number of manoeuvres, take-offs and landings with the ship-based aircraft,” Li said.

China will build 4 nuclear aircraft carriers in drive to catch US Navy, experts say

The warship appears to be ready for operations involving those aircraft, according to a report on news website Guancha.cn. Photos showed three blast deflectors – which protect the deck and crew from jet engines – on the Type 001A flight deck, along with trucks to tow planes and fire engines, the report said.

The vessel has undergone four sea trials since it was launched in April 2017.

China’s first and only active aircraft carrier, the Liaoning, was likely to carry out exercises involving J-15 fighter jets to get it combat-ready after its revamp, according to Li.
He expected both aircraft carriers to take part in the PLA Navy’s fleet review to be held off Qingdao, in Shandong province, on April 23 to mark the anniversary of the navy – part of a series of activities to commemorate the 70th year since the founding of the People’s Republic of China.
“They will both be at the event if the tests of the Type 001A go well. If not, the Liaoning will be there at least,” Li said.
After a fourth sea trial, China’s Type 001A aircraft carrier may go into service within month.
The Liaoning went back to the Dalian shipyard in May and has had its bridge and air traffic control centre rebuilt and radar system upgraded. The flight deck was also modified.
China bought the vessel from Ukraine in 1998 as an unfinished Soviet Kuznetsov-class carrier, the Varyag. It was retrofitted between 2006 and 2011. China’s first domestically built aircraft carrier, the Type 001A, was based on the 50,000-tonne vessel.
Source: SCMP
24/02/2019

China’s military build-up just starting – a lot more to come, expert warns

  • Military watchers can expect ‘something new’ at this year’s National Day parade in October, Professor Jin Canrong tells forum in Hong Kong
  • As tensions rise over Taiwan, Beijing is building a naval and missile force as powerful as any in the world, he says

Beijing’s military build-up just starting – a lot more to come, expert warns

24 Feb 2019

Submarine arms race seen heating up in Indo-Pacific amid China ‘threat’

16 Feb 2019

The US could send more nuclear attack submarines, such as the Virginia-class, to the region. Photo: AFP
Military vehicles carrying DF-16 ballistic missiles take part in China’s National Day parade. Taiwan says Beijing has such missiles trained on the self-ruled island. Photo: Handout
Military vehicles carrying DF-16 ballistic missiles take part in China’s National Day parade. Taiwan says Beijing has such missiles trained on the self-ruled island. Photo: Handout

Beijing will show the world “something new” when it rolls out its arsenal of short- to medium-range ballistic missiles at its National Day military parade in October, according to a Chinese expert on international relations.

Speaking at a seminar at the University of Hong Kong on Saturday, Professor Jin Canrong, associate dean of the school of international studies at Renmin University in Beijing, said China had made great strides in expanding its military capability, but there was a lot more to come.

US commander pushes for more funding to counter China’s influence in Indo-Pacific

While he did not elaborate on what the “something new” might be, he said the country was gearing up for a possible conflict over Taiwan, the self-ruled island that Beijing regards as a wayward province awaiting reunification.

Over the next five or 10 years, Taiwan could provide the “biggest uncertainty” for Beijing, he said, especially if the United States decided to “ignite” the situation.

Known for being outspoken on sensitive issues, Jin said that while Beijing wanted a peaceful reunification, it was wary of “pro-independence factions [on the island] and right-wing American [politicians] creating trouble”.

In a speech on January 2 to mark the 40th anniversary of Beijing’s call to end military confrontation across the Taiwan Strait, Chinese President Xi Jinping said that “the political division across the strait … cannot be passed on from generation to generation”, apparently signalling his determination to bring it to an end.

Xi said China would not abandon the use of force in reunifying Taiwan, but stressed the military would target only external elements and those seeking independence for the island.

In 2017, Taipei said that it had detected the deployment of DF-16 ballistic missiles on the mainland that were aimed at Taiwan.

Jin said China was rapidly expanding its missile capabilities. The People’s Liberation Army had already stockpiled about 3,000 short- and medium-range missiles, he said, even though it had been using just 15 per cent of its production capacity.

“Just imagine if we were running at 100 per cent,” he said.

Beijing will show the world “something new” when it rolls out its ballistic missiles at its National Day military parade in October, an expert says. Photo: Xinhua
Beijing will show the world “something new” when it rolls out its ballistic missiles at its National Day military parade in October, an expert says. Photo: Xinhua

Under its plan for military modernisation China had achieved “great advancements in space, electronics and cyberwarfare”, the academic said, but its achievements to date were only the beginning.

As well as the expansion of its missile force, Beijing was investing heavily in its navy, he said.

Is China about to abandon its ‘no first use’ nuclear weapons policy?

With the deployment of the new Type 055 guided-missile destroyer – which some Chinese military experts have said is as good as anything in the US Navy – the balance of power was shifting, he said.

“For the first time in 500 years, the East has combat equipment that is at least as good as the West’s.”

With the deployment of the new Type 055 guided-missile destroyer, the balance of power between China and the US is shifting, according to Jin Canrong. Photo: Handout
With the deployment of the new Type 055 guided-missile destroyer, the balance of power between China and the US is shifting, according to Jin Canrong. Photo: Handout

And as the navy continued to modernise and expand, the US might be forced to rethink its position in the region, he said.

“When we have dozens of destroyers and four or five [aircraft] carriers the US will not be able to meddle in Taiwan.”

China’s first aircraft carrier may become test bed for electromagnetic warplane launcher

Jin said that China would also soon have all the scientific, academic and research personnel it needed to achieve its military ambitions.

“China had nearly 30 million university students in 2018, which is twice as many as the US. More than half of them are studying science or engineering,” he said.

“Every year we produce about 4 million science and engineering graduates, while America produces just 440,000.”

Professor Jin Canrong speaks at a forum in Hong Kong. Photo: Handout
Professor Jin Canrong speaks at a forum in Hong Kong. Photo: Handout

Beijing also had the money to support its plans, Jin said. Based on his own calculations, he said China allocated about 1.4 per cent of its gross domestic product to military spending, which was lower than “Germany’s 1.5 per cent”, and less than half the “3 per cent in Britain and France”.

“The tax paid by Chinese smokers is more than enough to cover [the country’s] military expenses,” Jin said.

According to figures from Nato, Britain spent 2.1 of its GDP on defence in 2017, France 1.8 per cent and Germany 1.2 per cent. Both the World Bank and the United Nations put China’s military spending in 2017 at 1.9 per cent of its GDP.

Source: SCMP

22/02/2019

PM Modi awarded Seoul Peace Prize; India, S Korea ink 7 pacts, agree to bolster defence, economic ties

PM Modi and President Moon held constructive talks on enhancing bilateral cooperation in key areas including trade, investment, defence and security.

SNS Web | New Delhi | 

Prime Minister Narendra Modi was on Friday awarded the Seoul Peace Prize in recognition of his efforts aimed at raising global economic growth, accelerating the human development of the people of India and furthering the development of democracy through anti-corruption and social integration efforts.

 

Dedicating the award to the people of India, PM Modi said, “This award does not belong to me personally but to the people of India, the success India has achieved in the last 5 years, powered by the skill of 1.3 billion people”.

He further said he was honoured that the award was conferred on him in the year India celebrates the 150th birth anniversary of Mahatma Gandhi.

Talking at the 14th Seoul Peace Prize award ceremony, PM Modi said radicalisation and terrorism are the biggest threats to world peace and security in the present time.

He further called upon the need to join hands to completely eradicate terrorist networks. “Only by doing so, can we replace hate with harmony,” he said.

The Prime Minister also quoted a portion of the 1988 Olympics theme song, which goes as “Hand in hand, we stand, all across the land, we can make this world, a better place in which to live”.

PM Modi’s speech comes in the wake of the Pulwama terror attack that killed at least 44 CRPF personnel on February 14.

While choosing PM Modi, the award committee had recognised the Indian leader’s contributions to the growth of the Indian and global economies, crediting ‘Modinomics’ for reducing social and economic disparity between the rich and the poor.

The panel had also lauded Modi’s initiatives to make his government cleaner through anti-corruption measures and demonetisation. It also credited him for his contribution towards regional and global peace through a proactive foreign policy with countries around the world under the ‘Modi Doctrine’ and the ‘Act East Policy.’

Earlier in the day, PM Modi met South Korean President Moon Jae-in and expressed his gratitude to the President for his condolences on Pulwama attack and support against terror.

PM Modi and President Moon held constructive talks on enhancing bilateral cooperation in key areas including trade, investment, defence and security.

Addressing the media after the “productive talks” with President Moon, PM Modi said that South Korea is an important partner in India’s economic transformation.

He further said the defence sector was an important part of India’s growing partnership with South Korea. “An example of this is the induction of K-9 Vajra artillery gun in Indian Army,” the PM added.

Following the talks, India and South Korea signed seven agreements to enhance cooperation in key areas, including infrastructure development, media, start-ups and combating trans-border and international crime.

An important MoU was signed between the Korean National Police Agency and the Ministry of Home Affairs to enhance cooperation between the law enforcement agencies of the two countries and combat trans-border and international crimes.

Modi, who is on a two-day visit to South Korea to strengthen India’s strategic ties with the country, was accorded an official reception at the Blue House, the executive office and official residence of the South Korean President here. He also met First lady Kim Jung-sook.

PM Modi is visiting South Korea on the invitation of President Moon Jae-in. This is his second visit to the Republic of Korea since 2015 and a second summit meeting with President Moon Jae-in.

Source: The Statesman
20/02/2019

Ready to share intelligence, cooperate with India to destroy terrorism: Saudi Crown Prince

MoUs on tourism, cooperation in the field of housing, International Solar Alliance among others were exchanged between the two countries.

SNS Web | New Delhi | 

MoUs on tourism, cooperation in the field of housing, International Solar Alliance among others were exchanged between the two countries.

On his first state visit to the country, Prime Minister Narendra Modi welcomed the Saudi Crown Prince saying that Saudi Arabia was India’s “close friend”.

India and Saudi Arabia have a longstanding relationship, PM Modi said adding that in the 21st century, Saudi Arabia was among India’s most important strategic partners.

The Prime Minister, in a joint press conference with Crown Prince Mohammed bin Salman, also welcomed Saudi investment in Indian infrastructure.

In a major development, Saudi Arabia also joined the International Solar Alliance, informed PM Modi adding that the two leaders also discussed how to further strengthen the defence cooperation between the two nations.

“We have agreed to strengthen their cooperation in the areas of renewable energy. We welcome Saudi Arabia to the International Solar Alliance. The peaceful use of nuclear energy, especially water desalination and health, will be another dimension of our cooperation,” PM Modi said.

Speaking on the Pulwama terror attack that killed at least 44 CRPF personnel, the Prime Minister said the two leaders agreed on the need to destroy the infrastructure of terror and clamp down on countries supporting terror.

“We have also vowed to increase pressure on any country that promotes terror activities,” the Prime Minister said.

This comes after Salman’s high-profile tour of Pakistan on January 17 where he said dialogue was the only way to resolve “outstanding issues” between India and Pakistan.

Addressing the joint press conference, Saudi Arabia Crown Prince Mohammed bin Salman said his country shares India’s concerns over terror.

“Terrorism is a common concern. We will cooperate with India in every way, like intelligence sharing. India has played a positive role,” he said.

He also thanked the people of India and the Government for the warm welcome.

“The relationship between India and Saudi Arabia is over thousands of years old. It is even older than history, and this relationship has grown stronger in the last 50 years. Our objectives are similar be it in energy, agriculture or technology,” he added.

Salman also called for common planning between the two nations to tackle various issues and said that “Saudi Arabia has invested $44 billion in India”.

Earlier in the day, PM Modi and Salman held delegation-level talks on key areas of mutual interest such as trade and investment, energy, defence and security, nuclear and space, civil aviation, renewables, counter-terrorism, community welfare and regional challenges.

External Affairs Minister Sushma Swaraj also met Salman and discussed ways to add further momentum to the strategic ties between the two nations besides deepening engagement in areas of trade and investment.

Earlier on Wednesday, the Saudi Crown Prince was accorded a ceremonial reception at the Rashtrapati Bhawan by President Ram Nath Kovind.

After meeting President Ram Nath Kovind, the Saudi Arabia Crown Prince said, “Today we want to be sure that this relation is maintained and improved for the sake of both countries. With the leadership of the President and the Prime Minister, I am sure we can create good things for Saudi Arabia and India”.

Earlier on Tuesday, in a special gesture, Prime Minister Narendra Modi broke the protocol to personally receive the Saudi prince and welcomed him with a warm hug at the Palam airport.

External Affairs Ministry spokesperson Raveesh Kumar had said that the first state visit of the Saudi Crown Prince marks a “new chapter in bilateral relations between the two countries”.

Salman’s visit comes in the backdrop of the escalating tension between India and Pakistan following the Pulwama terror attack carried out by Pakistan-based Jaish-e-Mohammad (JeM) terror group in which at least 44 CRPF personnel were killed.

Saudi Arabia had on Friday said it stood with India’s fight against terrorism and extremism and denounced as “cowardly” the attack.

India’s bilateral trade with Saudi Arabia was USD 27.48 billion in 2017-18, making Saudi Arabia its fourth largest trading partner.

Saudi Arabia is also a key pillar of India’s energy security, being a source of 17 per cent or more of crude oil and 32 per cent of LPG requirements of India.

The Crown Prince is expected to travel to China from India.

Source: The Statesman
12/07/2017

China sends troops to open first overseas military base in Djibouti | Reuters

Ships carrying personnel for China’s first overseas military base, in Djibouti in the Horn of Africa, have set sail to begin setting up the facility, as China’s rapidly modernizing military extends its global reach.

Soldiers of China’s People’s Liberation Army (PLA) stand on a ship sailing off from a military port in Zhanjiang, Guangdong province, July 11, 2017.

Djibouti’s position on the northwestern edge of the Indian Ocean has fuelled worry in India that it would become another of China’s “string of pearls” of military alliances and assets ringing India, including Bangladesh, Myanmar and Sri Lanka.

China began construction of a logistics base in Djibouti last year. It will be used to resupply navy ships taking part in peacekeeping and humanitarian missions off the coasts of Yemen and Somalia, in particular.

It will be China’s first overseas naval base, though Beijing officially describes it as a logistics facility.

State news agency Xinhua said late on Tuesday the ships had departed from Zhanjiang in southern China “to set up a support base in Djibouti”.

Navy commander Shen Jinlong “read an order on constructing the base in Djibouti”, but the news agency did not say when the base would begin operations.

Xinhua said the establishment of the base was a decision made by the two countries after “friendly negotiations, and accords with the common interest of the people from both sides”.

The base will ensure China’s performance of missions, such as escorting, peace-keeping and humanitarian aid in Africa and west Asia,” it said.

“The base will also be conducive to overseas tasks including military cooperation, joint exercises, evacuating and protecting overseas Chinese and emergency rescue, as well as jointly maintaining security of international strategic seaways,” Xinhua said.

Foreign ministry spokesman Geng Shuang told a daily news briefing the base would enable China to make “new and greater contributions” to peace in Africa and the world and would benefit Djibouti’s economic development.

Djibouti, which is about the size of Wales, is at the southern entrance to the Red Sea on the route to the Suez Canal. The tiny, barren nation sandwiched between Ethiopia, Eritrea and Somalia also hosts U.S., Japanese and French bases.

‘NOT MILITARY EXPANSIONISM’

The People’s Liberation Army Daily said in a front-page commentary the facility was a landmark that would increase China’s ability to ensure global peace, especially because it had so many U.N. peacekeepers in Africa and was so involved in anti-piracy patrols.China would not seek military expansionism or get into arms races no matter what happened, the newspaper said.

“These promises will not change because of the construction of the overseas logistics base,” it said.

The state-run Global Times said in an editorial there could be no mistake that this was in fact a military base.

“Certainly this is the People’s Liberation Army’s first overseas base and we will base troops there. It’s not a commercial resupply point. It makes sense there is attention on this from foreign public opinion,” said the paper, which is published by the official People’s Daily.

China’s military development was about protecting its own security, it said.

“It’s not about seeking to control the world.”

There has been persistent speculation in diplomatic circles that China would build other such bases, in Pakistan for example, but the government has dismissed this.

Source: China sends troops to open first overseas military base in Djibouti | Reuters

22/05/2017

India announces policy for strategic partnerships in defence | Reuters

India on Saturday finalised a policy that would allow local private companies to work with foreign players to make high-tech defence equipment, in a boost to Prime Minister Narendra Modi’s bid to cut reliance on imports.

The policy, whose finer details are still to be formalised, will initially allow the entry of private companies into the manufacture of submarines, fighter aircrafts and armoured vehicles through foreign partnerships, a statement issued by the Defence Ministry said.”In future, additional segments will be added,” the statement said.

Industry experts have said that delays in finalising procurement policies have undermined India’s efforts to get local, largely inexperienced, companies to tie up with foreign manufacturers, a necessary step if domestic firms are to utilise the latest technology.

Prime Minister Modi has vowed to reverse India’s dependence on imports by building a local manufacturing industry. The government is forecast to spend $250 billion on modernisation of its armed forces over the next decade.The policy, announced on Saturday, would allow Indian companies to partner with global defence majors “to seek technology transfers and manufacturing know-how to set up domestic manufacturing infrastructure and supply chains,” the statement said.

Foreign manufacturers such as Lockheed Martin, Boeing, BAE Systems and Saab are looking to India as one of the biggest sources of future growth.

Source: India announces policy for strategic partnerships in defence | Reuters

16/02/2017

India and Russia seek to revive stalled helicopter venture | Reuters

India and Russia are nearing a joint venture to make light helicopters in India, reviving a plan announced by Russian President Vladimir Putin in 2015.

Delhi needs to replace hundreds of ageing utility helicopters deployed along its Himalayan border with China as well as in the disputed Kashmir region.

This means an initial order of 200 Kamov-226 helicopters, of which 140 will be built in India as part of Prime Minister Narendra Modi’s drive to build a domestic defence industrial base and cut imports, is expected to be increased.

And final documents relating to the $1 billion Kamov deal involving Russian Helicopters, Rosoboronexport and India’s state-run Hindustan Aeronautics (HAL) has been submitted to Putin, HAL’s chief T. Suvarna Raju, told reporters on Wednesday.

While India has sealed deals with the United States for 22 Apache attack and 15 heavy lift Chinook helicopters at total cost of about $2.5 billion, plans to buy Russian helicopters and fifth generation fighter aircraft have been dogged by problems.

“There are issues between parties, but these are being tackled,” Sergey Goreslavsky, deputy director general of Rosoboronexport, said at India’s biggest air show in the southern city of Bengaluru.

A team will assess the Indian manufacturing facilities over the next few months. “We are keeping our fingers crossed about launching production this year,” an executive at Russian Helicopters said.

The executive, who did not want to be named, said the joint venture will be modelled along the lines of Brahmos, the India-Russia entity producing supersonic missiles, which which military analysts say are among the deadliest in their class.

Russia was long the main supplier of military equipment to India, but Delhi has turned to France, Israel and increasingly the United States for supply of hardware in recent years.

U.S. aerospace and defence firms Lockheed Martin and Boeing have both offered to set up production lines in India to make combat planes.

Source: India and Russia seek to revive stalled helicopter venture | Reuters

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