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Picture courtesy of Thai PBS World

 

The Thai Cabinet has approved a contentious 13.5 billion baht submarine deal with China, choosing Chinese-made CHD620 engines over the originally planned German MTU diesel engines.

 

This decision follows Germany's refusal to export the MTU engines, adhering to NATO and EU restrictions on sensitive technology exports to China. The contract will now be extended by three years to accommodate the change.

 

The Royal Thai Navy (RTN) had hesitated to accept the Chinese engines due to concerns over performance, but the fear of losing the 8 billion baht deposit ultimately swayed their decision.

 

Adding to the decision's weight, Pakistan, employing identical engines in its submarines, assured the RTN of the engine’s efficiency. This development marks a significant shift as Thailand navigates diplomatic, technological, and economic factors in its military partnerships.

 

The deal involves a government-to-government agreement between the RTN and the China Shipbuilding & Offshore International Company for three Yuan-class S26T submarines, reported Thain PBS World.

 

Now that the contract has resumed, the focus will be on the performance of the Chinese engines and their potential influence on regional naval capabilities.

 

image.png  Adapted by ASEAN Now from Thai PBS World 2025-08-06

 

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