West Asian Oil For Chinese Arms
A Chinese aviation industry official says the country is introducing a new batch of military equipment to the international market. This includes an FBC2 fighter-bomber, an upgraded version of its JH7A fighter, intended for export.

China is now promoting its FBC2 and J10A fighters to Iran. The J10A was officially offered on the overseas market this year, but under the name FC20. The new generation YJ6-2 and C802A anti-ship missiles are also being promoted to Middle East countries including Iran. Sudan is reportedly seeking to acquire FC1 fighters from China.

As China faces an ever greater demand for energy, it is importing more crude oil from West Asian countries in recent years. It is also exerting greater political and military influence upon this region through expanded sales of military weapons. The long shadow of Chinese weapons has fallen over all six Gulf countries, and continues to do so. Iran has already become an important source of oil for China, as well as a key target market for China's arms exports.

Not only does the Iranian military have operational Chinese-made QW1 and FM80 ground-to-air missiles, they are also producing batches of the missiles within their country. Iran seems to have upgraded the QW1, or Mithaq-1, to Mithaq-2. The exterior structure of the newer missile seems to be different from the QW2 portable missiles. The FM80's Iranian name is Shahab Thaqueb. This is the first time for China to export such ground-to-air missiles to another country.

As for cooperation between Iran's navy and China's missile industry, it is widely known that Iran has acquired C802 anti-ship missiles from China. Iran has also started manufacturing its own ship-to-ship and land-to-ship versions of these missiles.

China first exported 200 of the C802 missiles to Iran in 1998. They were later renamed "Noor" by Iran. During the same period of time, the Iranian Navy also imported 10 Houdong (Thondor) class missile fast attack craft, each armed with four units of C802 missiles.

A second agreement on naval cooperation was finalized in 2000. According to the agreement between the two countries, Iran will eventually acquire a total of 10 "China Cat" missile fast attack craft, each of which will be fitted with 4 FL-10 serial ship-to-ship missiles produced by Hongdu Group Ltd. Iran will also build more "China Cat" missile fast attack craft indigenously. The Iranian Navy also plans to purchase LY60 ship-to-air missiles.

In addition to the above programs, the exterior and structure of a number of Iran's other advanced weapon systems seem to connect them with China. For instance, the Iranian edition SHKVAL-E heavy-duty torpedo that made its appearance in recent naval exercises has caught the attention of military observers. Only Russia, Ukraine and China have the technologies to produce this type of torpedo. Kazakhstan had the capability to assemble this torpedo during the Soviet Union years and exported 40 such torpedoes to China. A source from the Russian military industry says that they did not transfer similar production technologies to Iran.

At the same time it has been exporting large batches of arms to Iran, China has also received huge business opportunities in Iran as well as a stable oil supply. Chinese companies are not only actively involved in the construction of an underground railroad system in Tehran, but are also helping Iran to develop its oil resources.

China's oil imports from the Middle East now make up as much as 40 percent of the country's total oil purchases. In the first quarter of 2006, from Iran alone China imported 377,000 barrels of oil per day. China's total imports of oil from Iran in 2005 rose to more than 14 million tons, amounting to a little over 11 percent of China's annual oil imports.

Solid military cooperation between the two countries has guaranteed a stable trade between China and Iran, which is very much immune to changes in the international situation. Iran has also agreed to supply China with 3 million tons of liquidized natural gas annually over the next 25 years, lifting the total export to 75 million tons. Bilateral trade between Iran and China has reached US$7 billion annually.

Other Chinese weapon systems in operational service in the Iranian armed forces include 100 Type 59 tanks, 100 Type 54 122-mm howitzers and 24 J7M fighters.

Saudi Arabia has become China's single biggest source of oil supply. Since 1980s, China has been actively promoting military weapons to this country. In 1988, China exported to Riyadh 40-50 1,700-km-ranged DF3 ground-to-ground missiles and 10 sets of towed launchers.

In 2000, observers of Middle East military affairs said that Saudi Arabia hoped China would help upgrade these missiles so as to enhance their strike accuracy.

Pakistan has been promoting Al-Khalid main battle tanks to Saudi Arabia for two consecutive years. It plans to deliver the MBT directly to Riyadh for testing within this year.

Last year, two Saudi ground force delegations visited Pakistan and field-tested this MBT. The Al-Khalid MBT specifically targeted at Saudi Arabia is equipped with the thermal imaging system produced by the French SAGEM Company. Saudi Arabia will need at least 150 of the tanks, totaling around US$600 million.

This Al-Khalid MBT was jointly developed by Pakistan and China. An authoritative source from Islamabad says that the promotion of the K8 trainer to Saudi Arabia is what China and Pakistan feel most confident about. China and Pakistan have jointly promoted to Egypt 80 K8 trainers and have sold Egypt the production technology of the aircraft.

In 2005, bilateral trade between China and Saudi Arabia reached US$16 billion, in which China's exports to Saudi Arabia were valued at US$3.82 billion. At present, China is importing 1.9 million barrels of oil from Saudi Arabia every day. In 2005 Saudi Arabia exported to China a total of 22 million tons of oil, mainly used as China's strategic energy reserve.

Oman is China's fifth largest source of oil. It exported 10 million tons of crude oil to China in 2005, approximately 8.5 percent of China's total oil imports in that year. With China's increased demand for oil, China's promotion of military weapon systems to Oman is also becoming more active. Around 2001, Chinese arms successfully penetrated the Oman market. In that year, NORINCO exported to Oman six sets of Type 90A rocket guns, and later NORINCO also promoted to the Oman Royal Guards a new batch of Type 90B rocket launchers.

Almost during the same period of time, NORINCO sold to the Oman Royal Guards around 50 WMZ551 wheeled armored vehicles, which was the first time for China to export wheeled armored vehicles to the Middle East Region.

The United Arab Emirates is one of the key target markets of China's arms promotion in the Middle East region. The UAE was in fact the first country to use the Chinese made HJ8A anti-tank missiles. Around 2003, NORINCO exported to UAE one 23-mm rapid-fire gun for testing purposes. In 2005, UAE exported to China 2.5 million tons of crude oil, which made up about 2 percent of China's total oil imports.

China was also one of the first countries to target Kuwait's rebuilding of its military machine. China's most successful promotion of arms to Kuwait was the deal of 27 sets of PLZ45 155-mm self-propelled guns in 2000. These self-propelled guns were delivered to Kuwait in two different batches, totaling 54. In 2005, China imported 1.6 million tons of oil from Kuwait, approximately 1.3 percent of China's total oil imports.

In 2005, Yemen exported to China 6.8 million tons of crude oil, which makes up 5.4 percent of China's total oil imports, and Yemen is China's sixth largest source of oil. In recent years, China's financial loans to Yemen and economic aid have also increased. In 1989, North Yemen purchased 6 J7 fighters from China. At present, thanks to rapid economic recovery, Yemen is expanding its navy and air force arsenals. Yemen has ordered a batch of the latest version of MiG29SMT fighters from Russia.

It can be concluded that China is using arms sales and oil development as its leverage to further strengthen its relations with oil-rich countries in West Asia, and at the same time stepping up efforts to sell more arms to most of the six Gulf countries.