Thailand is approaching a pivotal decision regarding its contentious submarine procurement from China. The 13.5-billion-baht deal, signed in 2017 with China Shipbuilding & Offshore International Co. (CSOC), has faced significant delays due to Germany’s refusal to export MTU engines to China, citing European Union arms embargoes . In response, China proposed using its domestically produced CHD620 engine, which has not been previously deployed in submarines.
Deputy Prime Minister and Defense Minister Phumtham Wechayachai has indicated that a final decision on the submarine deal is expected by late May or early June 2025. He emphasized the need to consider the substantial investments already made, including approximately 7 billion baht paid to China and the Royal Thai Navy’s preparations for the submarine’s commissioning, such as establishing a submarine squadron, building a dockyard, and training personnel.
Thailand’s 13.5-billion-baht submarine project remains in limbo as officials debate its future. Photo Courtesy Nikkei Asia
The proposed CHD620 engine has been certified by Lloyd’s Register, a UK-based maritime classification society, and is reportedly used in similar submarines sold to Pakistan . However, concerns remain about its performance and reliability, as it has not been used in any submarine, including those in China’s own fleet.
The submarine deal has broader implications for Thailand’s defense strategy and its relationships with international partners. Accepting the Chinese-made engine could strain relations with Western allies and raise questions about the Royal Thai Navy’s operational capabilities. Conversely, canceling the deal may result in financial losses and diplomatic tensions with China.
As the deadline approaches, the Thai government faces a complex decision that will impact the nation’s defense posture and international relations for years to come.
