Beijing linked to arms deals with Saudis and Egypt
Middle Eastern countries said to be looking to diversify weapons supply from Russia and US
China is reportedly in talks with Saudi Arabia and Egypt for major arms deals as both countries seek to diversify their weapons supplies to become less reliant on the United States and Russia.
Saudi Arabian Military Industries is in talks with China North Industries Group Corporation, a state-owned defence company, to buy weapons ranging from reconnaissance drones to air defence systems, according to Tactical Report, a Beirut-based intelligence service that is focused on the Middle East.
Weapons involved in the potential deal include the Sky Saker FX80 unmanned aerial vehicle (UAV), the CR500 vertical-take-off-and-landing UAV, the Cruise Dragon 5 and 10 – two types of loitering munitions, better known as suicide drones – and the HQ-17AE short-range air defence (SHORAD) system, the service reported last week.
The HQ-17AE SHORAD is the latest addition to the deal, which has been in negotiations for about a year, and talks had “reached an advanced stage”, Tactical Report said, quoting unnamed sources close to the situation.
Negotiations were expected to continue until the end of this year or the beginning of next year, the report said, adding that there were rumours the entire deal would be financed using Chinese yuan.
In another report published on Monday, Tactical Report said Egypt was in talks with China to acquire the Chengdu J-10C multirole fighter.
To further talks started late last year, a delegation from the Egyptian Air Force is expected to meet representatives from the Chengdu Aircraft Industry Group on the sidelines of the Langkawi International Maritime and Aerospace Exhibition in Malaysia this week.
During the meeting, the Chinese company would reveal the latest improvements to the J-10C, including its advanced electronic warfare system and active electronically scanned array radar, as Egypt was said to be eyeing 12 of the fighter jets, the report said, quoting anonymous sources.
While the United States remains the world’s top weapons exporter, analysts said China had emerged as an alternative supplier because it offered affordable advanced weapons without political strings attached.
“China is willing to sell hi-tech weapons equipment to friendly nations without political terms, which I think is the main appeal to the Middle East,” said Song Zhongping, a former instructor with the People’s Liberation Army.
As the world’s biggest defence spender, Saudi Arabia has sourced weapons from a variety of countries, though mostly from the US.
But Riyadh is looking to diversify its weapons sources amid increased tensions with Washington following the death of journalist Jamal Khashoggi in 2018 and in light of an oil dispute last year with the broader version of the Organisation of Petroleum Exporting Countries known as Opec+.
Chinese media reported last year that Saudi Arabia bought US$4 billion worth of weapons from China – much more than their previous arms deals – after the Zhuhai air show in November.
“Financing the deal with the Chinese yuan could help eliminate the influence of the US dollar, preventing the US from using the currency as a tool for suppression and restriction,” Song said.
According to data from the Stockholm International Peace Research Institute, the five largest arms exporters in 2018-22 were the United States, Russia, France, China and Germany, together supplying 76 per cent of the world market.
During the five-year period, the US supplied 40 per cent of global arms exports, with the main recipients being Saudi Arabia, Japan and Australia.
China accounted for 5.2 per cent of global weapons exports, with Pakistan, Bangladesh and Serbia the top recipients.
Egypt, which is in the midst of a maritime dispute with neighbouring Libya, was ranked sixth in global arms imports for 2018-22 after India, Saudi Arabia, Qatar, Australia and China.
Egypt has mainly sourced arms from Russia, France and Germany, but it is looking to China as the war in Ukraine has restricted Moscow’s ability to manufacture military hardware for clients, according to analysts.