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World No. 3, but China still Struggling to Sell Arms Overseas

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The Zhi-10 (Z-10) Helicopter Gunship uses a typical, tandem-seat configuration and is dual engine powered - The Machine was entirely designed by Kamov of Russia under a secret contract named Project 941 and it looks like a copy of the Boeing AH-64 Apache


China is struggling to make inroads into the international arms market due to competition and opposition from Western countries, in particular the US, reports the Beijing-based Sina Military Network.

Despite having overtaken Germany this year to become the world's No. 3 arms exporter, Chinese weapons manufacturers continue to have trouble securing deals.

Thailand reportedly approved in June the purchase of three Chinese S-26T submarines for around US$1 billion, but the deal was suspended indefinitely in July. The reason offered at the time was that Bangkok is still considering whether the new submarines are needed, though there are claims that the plans were shelved due to pressure from the US.

Huang Dong, president of the Macau International Military Institute, told Hong Kong newspaper Ming Pao that China is desperate to find buyers for its new S-20 submarine — the export version of the Type 039A — and S-26T sub, but so far there have been no confirmed deals.

Egypt, which acquired four submarines from China in the 1980s, is said to be a potential buyer but is still comparing prices quoted by China and Germany.

Likewise, Pakistan is also believed to be shopping around. Last month, reports surfaced that Pakistan had struck a deal to acquire eight new submarines from China, though Western media claims that a concrete agreement has not been reached.

Huang said he believes Pakistan is negotiating with several other countries to put pressure on China to drop its asking price, and that Beijing is very unhappy about this tactic.

Another instance of where a potential deal has stagnated is Turkey's interest in buying China's HQ-9 missile defense system, the Sina report said, adding that it is also suspected that the main obstacle is US opposition.

According to statistics released in March by the Stockholm International Peace Research Institute, China's arms exports between 2009 and 2014 increased by 143%, overtaking Germany to be the world's third-largest arms exporter behind the US and Russia. However, China remains a small player in the US$300 billion global arms market with only a 5% share.



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