China’s 13.5 billion-baht (US$392 million) deal to build a submarine for
Thailand was hailed in 2017 as one of the centrepieces of Beijing’s defence export plans. But the deal has appeared increasingly in limbo in recent months because of the manufacturer’s inability to obtain German-made diesel engines as stipulated in the contract.
The reason?
Germany is limiting the export of defence technology to China,
citing a European Union embargo first imposed in 1989 in the aftermath of the Tiananmen Square crackdown. Certain exports from European nations have been allowed in the past, but it appears the rules are being more strictly enforced this time around.