19 June 2015

Editorial: How Much Do China’s Warships Actually Cost?

By Gabe Collins


Our author offers an estimate, focusing on the Type 054A (Jiangkai-II) frigate.

What does it actually cost Chinese naval shipyards to build major warships? Chinese sources do not disclose actual or estimated warship and submarine production costs, so it falls on external analysts to generate this important dataset. Quantifying warship production costs bolsters our understanding of how China’s defense budget actually translates into hardware and capabilities.

This analysis focuses on the Type 054A (NATO codename: Jiangkai-II) frigate, for three primary reasons. First, it is China’s most prolifically produced large, modern major surface combatant. Second, it has been series produced for several years. Third, it is the cornerstone of the PLAN’s surface warfare capabilities at present and has actually seen sustained (and ongoing) operational deployments.

Readers should note that this is a “Beta Version” estimate of the Type 054A’s production costs. It is well-developed, but will almost certainly evolve as more participants contribute their insights. I share my core calculations and assumptions in order to provide a springboard for other analysts and hopefully catalyze a broader discussion that advances our knowledge of China’s naval-industrial complex.

Read the full story at The Diplomat