China’s Way to Reduce Military Budget: Sell Its Best Weapons

China’s CH-4 hunter-killer drone

SCMP says in its report “Chinese drone factory in Saudi Arabia first in Middle East” yesterday that China will earn US$65 billions by selling its most advanced CH-4 drone technology to Saudi Arabia.

It says China is able to do the transaction as CH-4 is cheaper than US MQ-1, but it is exceptional to sell the technology in helping Saudi Arabia build a CH-4 factory.

China has just succeeded in developing CH-5 more advanced than CH-4, but as it has just been developed and not tested in war, CH-4 remains China’s most advanced reliable drone. China displayed its confidence in developing more advanced drones by selling its most advanced drone technology. That is what the US dare not do and the reason China can compete with the US with a much smaller military budget. China is able to recover its R&D costs through export.

Comment by Chan Kai Yee on SCMP’s report, full text of which can be found at