In the most recent Kanwa article, it talked a lot about the contract negotiations between the two sides late last year. First, they signed a contract for 125 AL-31FNs for J-10. I think the cost for the engines went up from previous contracts ($3 million to $4 million), but the engine specs didn't actually improve. So, they are still getting the baseline FN engines rather than FM-1 or FM-2 variant. We went through about a year or 2 where almost no J-10s were produced because of engine issues, so J-10 production should start again pretty fast. In the mean time, I think they've upgraded some of the earlier J-10s to the same standard as the recent ones. Secondly, they also revived the contract for 240 D-30KP2. The terms for the contract will be the same as it was signed for, but it looks like Russia might be taking a loss on this contract. The first batch of 30 to 40 D-30 engines will be delivered by the end of this year. At which point, XAC will finally be able to start the production of the long awaited H-6K. Apparently, which China first purchased the D-30 engines, the Russians weren't even informed they were for H-6Ks, but thought it was spares for IL-76/78s. Either way, this time China has apparently informed the Russians that this engine will also be used for strategic reconnaissance/surveillance aircrafts. That would indicate that China is planning to build surveillance aircraft on the H-6 platform which would seem to interfere with the existing Y-8 programs. Or maybe, China will be using some of these engines for its own large transport platform in the future. Even if 1/3 of the 240 D-30s are used as spares for IL-76/78s, they would still have 160 engines left. If we use the standard ratio of 1 spare per 2 engines, they would still be able to produce over 100 H-6s. Based on what we've seen in the past, it's unlikely they will build that many. So, I do think that some D-30s will be used at least in the beginning stage of China's transport program.
The IL-76/IL-78 discussions are still undergoing right now with the Russians. I think they will get something done soon, because the domestic transport project still has years to go. The Il-476 production has yet to start in Russia, but I would imagine that China would want to get the first batch off the production line. They are also still having discussions over Su-33s. Russia has now raised the minimum of Su-33 orders from 24 to 40. So, China would have to purchase at least 40 Su-33s from Russia or Russia won't make the deal. Russians are also discussing the possibility of upgrading Su-33s to use MK2 avionics. But really, why would China want to do that, when MK2 avionics is still horribly outdated. Outside of anti-shipping missions and the ability to fire R-77, an MK2 upgrade really would not provide that much help. And they are also trying to discuss with China about another MK2 purchase. I don't even know what to say about that other than the factor that I'm not surprised China wasn't interested in the talks.
Outside of this, the Russians also handed China a little of systems it believes that China copied. As I mentioned in previous posts, I agree with some of them and disagree with other ones. I don't think they have signed Russia's intellectual property agreement, but they really have no need to. As I have mentioned above, China really does not have that many more requirements after IL-76 and engines, so future military cooperation meetings might not end that fruitful for the Russians either.


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