October 17, 2017                                   Issue No. 25
IN THIS ISSUE

GENERAL DEFENSE INDUSTRY NUCLEAR INDUSTRY
AVIATION INDUSTRY & PLA AIR FORCE ORDNANCE
SPACE & PLA ROCKET FORCE ARMS TRADE
REGIONAL ACTORS
GENGENERAL DEFENSE INDUSTRY ISSUES
Chinese Power Projection Capabilities in the South China Sea | CSIS Asia Maritime Transparency Initiative

Since 2014, China has substantially expanded its ability to monitor and project power throughout the South China Sea via the construction of dual civilian-military bases at its outposts in the disputed Spratly and Paracel Islands. These include new radar and communications arrays, airstrips and hangars to accommodate combat aircraft, shelters likely meant to house missile platforms, and deployments of mobile surface-to-air and anti-ship cruise missile systems at Woody Island in the Paracels. The overlap of these capabilities is highlighted in a map in the article.
airAVIATION INDUSTRY/PLA AIR FORCE

Sensitive data about Australia's F-35 stealth fighter and P-8 surveillance aircraft programs were stolen when a defense subcontractor was hacked using a tool widely used by Chinese cyber criminals, officials said. The aerospace engineering firm was compromised in July last year but the national cyber security agency, the Australian Signals Directorate (ASD), only became aware of the breach in November, technology website ZDNet Australia reported. Some 30GB of "sensitive data" subjected to restricted access under the US government's International Traffic in Arms Regulations rules were stolen, ASD's Mitchell Clarke told a security conference, according to ZDNet.
 

DJI, the world's largest recreational drone maker, has introduced a so-called local data mode, which will let users fly their devices without any data exchanged with the pilot and the Internet during flights. The new safety mode could stop Internet traffic being accessed to and from its DJI Pilot app, which is designated to provide enhanced data privacy assurances for sensitive government and private corporate customers, DJI said in a statement. The DJI Pilot app is specifically for drones used under professional context. The new update, which could stop sharing information such as flight logs, location, photos and videos to DJI's company servers, came after the US Army in August ordered its member organizations to stop using DJI drones due to security fears.
 

China has seemingly taken advantage of an American void in exporting drone technology to certain countries and has quickly advanced to develop and export its own arsenal of unmanned aerial systems. What are the geopolitical implications of China becoming the primary alternative supplier of drones to countries both hostile and friendly to the United States? How does this proliferation differ from China simply incorporating its drone technology into its own military doctrine? Will China's drones become the AK-47s of tomorrow?
spaceSPACE & MISSILE INDUSTRIES/PLA STRATEGIC ROCKET FORCE

A Long March 2D rocket manufactured by China's Shanghai Academy of Spaceflight Technology has launched the Venezuelan Remote Sensing Satellite (VRSS-2) unit into space from Jiuquan Satellite Launch Center in China's Gansu province. VRSS-2 is the third probe to be launched by China for Venezuela. It follows the delivery of Venezuela's first communication satellite known as Venesat-1 in 2008, as well as the first Venezuelan Remote Sensing Satellite, VRSS-1, in 2012.
nukesNUCLEAR INDUSTRY

A cutting-edge domestic steam generator has departed for the first demonstration nuclear power project using Hualong One technology, a domestically developed third-generation reactor design. The Hualong One ZH-65 steam generator has a life span of 60 years with lower outlet humidity and a higher power-weight ratio than previous technology. The generator was developed by a team led by Zhang Fuyuan, chief designer at the Nuclear Power Institute of China. It was designed for the No. 5 unit of Fuqing Nuclear Plant in Fujian Province, a project of the China National Nuclear Corporation.
ordORDNANCE INDUSTRY

China has inducted its much-publizised light battle tank, introduced in Tibet during the height of the Doklam standoff with India, and for the first time the Army displayed its photo at a military exhibition here, a media report said. Developed by the China North Industries Group Corp, the country's biggest maker of land armaments, the light tank, whose weight ranges from 25 to 35 metric tonnes, is equipped with a hydro-pneumatic suspension system that ensures good maneuverability and survivability in mountainous regions. Its main weapon is a 105-mm gun that is able to fire both shells and guided missiles, according to weapons experts, who said the tank's main task is to fight on plateaus even at very low temperatures.
armsARMS TRADE

Pakistan is one of the main destinations for China's arms exports while the country is rising in arms trade, Defence experts said. Pakistan has recently signed contracts to acquire an undisclosed number of frigates from China and is also planning to buy eight submarines from China, reported China's state newspaper Global Times.
actorsREGIONAL ACTORS

Taiwan's president is emphasizing the need for the island to beef up its defense industry in the face of threats from mainland China. President Tsai Ing-wen, who took office in May 2016, has accelerated that development largely in aerospace, submarines and cyber security. In June, her government set up a special command to work on cyber security, including research on electromagnetic technology, such as the signals that make internet technology devices run. Tsai emphasized indigenous defense in a National Day address, saying, "We will continue proactively to build up our indigenous defense industry through technical exchanges."