Bangkok – In a pivotal decision resolving years of procurement delays, the Thai Cabinet today greenlit the controversial 13.5 billion baht submarine purchase from China, accepting Chinese-made CHD620 engines as substitutes for the originally specified German MTU diesel powerplants. The approval comes with a three-year contract extension to accommodate the technical changes.

Thai navy expects delivery of first Chinese submarine in next three years

The deal’s trajectory shifted dramatically when Germany invoked NATO and EU export controls, blocking the transfer of sensitive MTU engine technology to China. This forced Beijing to propose its domestically produced CHD620 engines as alternatives – a solution initially met with skepticism by the Royal Thai Navy (RTN) over performance reliability concerns.

Defense Minister Sutin Klungsang revealed the Navy ultimately acquiesced after calculating the financial repercussions. “Cancellation would have meant forfeiting our 8 billion baht down payment,” he explained, adding that Pakistan’s positive operational experience with identical Chinese engines in their submarine fleet helped alleviate technical concerns.

🇨🇳🇹🇭 BREAKING:

Thailand has purchased a submarine from China — the Yuan Class S26T — under a $370 million deal. pic.twitter.com/tZOsAQwaG2

— Defence Index (@Defence_Index) August 5, 2025

The government-to-government contract with China Shipbuilding & Offshore International Company will deliver three Yuan-class S26T submarines to Thailand. The vessels represent a significant capability upgrade for the RTN, though the engine substitution has drawn criticism from opposition lawmakers questioning the compromise on specifications.

“This decision reflects pragmatic considerations balancing military needs with fiscal responsibility,” stated government spokesperson Chai Wacharonke, emphasizing the extended delivery timeline allows for thorough testing and crew training on the new propulsion systems.

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The resolution concludes a five-year procurement saga that became a litmus test for Thailand’s defense partnerships amid shifting geopolitical alignments in the region. Naval analysts note the compromise maintains Thailand’s strategic diversification between Western and Chinese military suppliers.

-Thailand News (TN)