Thailand Greenlights Chinese-Built Submarine: Delay Ends as Deal Proceeds

CHRISTCHURCH, New Zealand — Thailand has recently resolved to continue with its plans to acquire a Chinese-designed S26T diesel-electric submarine after initially considering halting the purchase.

The reconsideration stemmed from complications arising when China was unable to procure German diesel engines as initially planned, proposing instead to use Chinese alternatives.

A decision was made by the Thai Cabinet on August 5 to amend the existing contract, allowing the submarine project to resume after being inactive since 2021.

The Thai government originally placed an order for this single S26T submarine on May 5, 2017, reducing their initial request from three submarines due to budget restrictions.

Construction began with the keel-laying by Wuchang Shipbuilding Industry Group in Wuhan on September 5, 2019.

Engine Substitution

The Thai authorities had initially specified that the 2,600-ton vessel should be equipped with German-made MTU 396 diesel generator sets.

Following Germany’s refusal to supply these engines, China Shipbuilding & Offshore International Co (CSOC) suggested using Chinese-manufactured CHD620 engines as an alternative to keep the project alive.

However, concerns regarding the quality and durability of the Chinese engines caused hesitation. The Royal Thai Navy then mandated a series of evaluations, requiring China to certify the reliability of these CHD620V16H6 engines.

After extensive testing over 6,000 hours, the engines were deemed to meet the required standards for performance without impacting the submarine’s operational capabilities, as per the RTN’s assessment.

Thailand also negotiated additional support from Beijing, receiving an aid package valued at US$24.7 million. This includes enhanced warranty and maintenance terms extended from two to eight years, as well as provisions for future equipment, weaponry, and submarine simulation technology.

While the specifics of the weaponry remain unspecified, it is expected to include advanced torpedoes, mines, and possibly anti-ship missiles like the CM-708UNB.

With the project’s revival approved in August, China now has a deadline until December 2028 to complete the submarine. Initially set to be operational by 2023, the submarine currently stands 64% finished.

Up to now, Thailand has paid approximately US$237 million to CSOC in 10 installments, with an outstanding amount constituting 37% of the total submarine cost.

Insights and Implications

This development highlights several key issues. Initially, both China and Thailand did not anticipate problems in securing the German engines, pointing to a lapse in contractual thoroughness.

The refusal by Germany to export these engines is rooted in a European Union arms embargo against China dating back to June 1989, following the Tiananmen Square events. Despite this, several European countries, including Germany, have seen inconsistent enforcement of this embargo.

Siemon Wezeman from the Stockholm International Peace Research Institute expressed surprise at Germany’s intervention, noting the non-sensitive nature of these engines which have previously been sold to China for civilian uses.

Moreover, the scenario suggests a more stringent approach by Germany towards dual-use technologies intended for China’s military. Wezeman speculated that Germany’s reservations might also relate to the end user being Thailand, which has been under military governance since a 2014 coup.

Reflecting on the broader context, this procurement underscores Thailand’s deepening military ties with China amid cooling relations with the U.S. following the coup. Australian scholar Dr. Greg Raymond emphasized that Thailand’s choice of Chinese submarines was influenced by geopolitical considerations as much as by military needs.