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Subject

Trends in the Russia-China arms trade.

Significance

Chinese sales of marine engines for Russian naval ships indicate a partial reversal of the direction of the bilateral arms trade. Moscow has opted to buy the engines as local manufacturing cannot keep pace with the urgency of procurement demands. China continues to import advanced weapons systems from Russia, reflecting the latter's technological superiority in certain areas.

Impacts

Moscow will pursue arms sales in old and new markets for financial as well as geopolitical reasons.

China and eventually India will emerge as competing arms exporters to developing and middle-income countries.

India will consider arms purchases carefully in light of supply problems affecting Russian frigates.

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