U.S. Helps Build the Chinese Military
Deals for Military Items

The Chinese People's Liberation Army (PLA) General Armament Department announced that Beijing Jeep Corporation Ltd. (BJC) has been selected to develop its next-generation multi-role lightweight cross-country vehicle.

BJC unveiled the PLA's lightweight cross-country vehicle, called "Brave Warrior," during an international science expo held in Beijing in May 2005. The initial production of the Brave Warrior is scheduled to begin in 2006.

The Brave Warrior will replace the current BJ2020SJ and BJ212 vehicles in service with the PLA for command and liaison, transport, reconnaissance and weapon platforms. The first Brave Warrior is expected to enter service by 2007.

The vehicle is based partially on the technology of the BJC's canceled "Challenger" sport utility vehicle, introduced in 1997.

U.S. Roots

However, the Brave Warrior is also based on Western technology obtained from a joint venture with U.S. automaker Chrysler. According to a Commerce Department report, in 1995 Chrysler had an exclusive deal with the Chinese army making Jeep Cherokee four-wheel-drive vehicles at a PLA-owned auto plant. The Chinese army auto plant also produces the BJ2020SJ and BJ212 four-wheel-drive vehicles for the PLA.

"Despite almost a decade of relative success in producing both the Jeep Cherokee and a wholly locally produced military-style jeep (the BJ2020 series), by 1995 Chrysler had pulled out of its bid to build a new minivan joint venture in Shanghai out of complete frustration," states a January 1999 U.S. Commerce Department report on technology transfers to China.

"Chrysler executives were expressly concerned over licit and illicit technology transfers," noted the 1999 Commerce report.

"Chrysler's concerns were amplified when Chrysler CEO Robert Eton was made aware that knock-offs of Chrysler's Jeep Cherokee had been seen on the streets of Beijing. When complaining about this to Chinese officials, he reportedly was told that this (the ability to copy Chrysler's Jeep Cherokee) was a good sign of progress in China's auto industry, about which he should be pleased. Apparently, he was not, and Chrysler soon canceled plans to go ahead with the Shanghai plant," states the report.

Advanced U.S. Auto Technology

In addition, the Chrysler deal with Beijing had a further twist that sent it over the edge. The Chinese army interest in advanced vehicle manufacturing technology from Chrysler was a special indication of the reality of doing business with Beijing.

"Chinese officials were demanding more advanced technology than seemed appropriate or necessary to Chrysler," concluded the Commerce report.

Chrysler was at that time the maker of the U.S. Army M-1 tank. Chrysler officials quickly realized the advanced assembly and manufacturing technology demanded by the Chinese was far more applicable to making armored vehicles than vans for soccer moms.

"According to interviews conducted for this study, given the experience in Beijing, Chrysler executives were made even more wary of the technology transfers, proposed licensing deal and export quotas being requested as part of the Shanghai deal and decided that the risk was simply too great when it came to what was for Chrysler a relatively new (the minivan) and, therefore, advanced technology. Chrysler currently has no plans to expand its investment ventures in China," stated the Commerce Department report.

Despite the Chrysler lesson, China continues to engage in the rampant conversion of U.S. civilian technology into equipment used for strictly military purposes. The most recent "sucker" deal is the Bush administration acceptance of Chinese arrogance.

Boeing for Beijing

According to Bush administration officials, China will buy 70 Boeing 737 airliners. Bush arrived in Beijing on a visit, which was expected to include discussion of China's surging trade surplus with the United States.

Mike Green, senior director for Asian affairs on the National Security Council, made the announcement while traveling with Bush in China. Green would not discuss the financial details of the airplane deal.

"It's a very important thing and I think it's a testament to how our approach to China is yielding real results. In this case, an order for 70 737 aircraft from Boeing," stated Green.

Yet at the same time Green was making his proud announcement, China has recently converted a Boeing 737 into an advanced military command aircraft. The Chinese army conversion of a U.S.-made airliner into a military aircraft is a direct violation of U.S.-Sino trade agreements and U.S. export laws.

Officials at the U.S. State Department and the U.S. Commerce Department refused to comment on the illegal Chinese modification. Photographs of the converted jet surfaced earlier this year and were the subject of an article by investigative reporter Bill Gertz.

Illegal 737 Conversion

The aircraft, identified as a Boeing 737, tail number B-4052, was sold to China United Airlines (CUA) in 1990 by Indonesia. Xian Aircraft Corporation modified the jet airliner into a flying command post for the Chinese army.

One prominent feature of the new airborne command post is a satellite antenna fairing on top of the forward fuselage. Two more data-link and communication fairings are located underneath the mid-section of the fuselage.

The aircraft now serves the Chinese army and is intended to fly PLA commanders during war. The 737 is intended to allow a PLA crew of generals and staff to fly close to a battlefield, issuing commands to their army, navy and air force from an airborne headquarters that is invulnerable to attack.

China United Airlines currently operates a fleet of ten Boeing 737-300 airliners as troop and VIP transports. According to Aviation Week and Space Technology, the Chinese air force (People's Liberation Army Air Force, or PLAAF) obtained the U.S. jet transports in 2000 through a purchase approved by the Clinton administration.

Images obtained from official Chinese TV outlets show the civilian airliners are manned and operated by military crews. U.S. defense intelligence officials confirmed that the PLAAF is currently operating the ten Boeing China United airliners as military troop transports.

According to a 1994 U.S. military report, the Clinton administration was aware that China United Airlines was owned by the PLAAF. Documentation obtained using the Freedom of Information act shows that China United Airlines is actually one of several businesses wholly owned and operated by the People's Liberation Army Air Force or PLAAF.

"China United Airlines (CUA) is a commercial entity of the PLA Air Force," states a 1994 report on the Chinese military issued by Lt. Col. Dennis Blasko, former U.S. defense attaché to Beijing.

The silence from the White House and State Department on the illegal conversion of the U.S. 737 is now all too obvious. Any objection by the Bush administration would have sent the Boeing deal for 70 Boeing airliners down the drain.

How many of these airliners will become troop transports, electronic warfare aircraft or flying command posts before we learn to stop feeding the dragon?