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Germany Rejects Pakistan's Bid for Sensitive Submarine Tech: AIP China

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It appears China has tried to gain access to Germany's/Siemen's highly sensitive fuel cell air independent propulsion (FC-AIP) technology, for submarines, via a bold Pakistani approach to Germany.

Shishir Gupta for India's Hindustan Times, August 25, 2020 reports :


"Angela Merkel dashes [Pakistani Prime Minister] Imran Khan hopes to make Pak subs more lethal, says won’t help"

"Pakistan had requested Germany for access to the air independent propulsion (AIP) system that can recharge submarine batteries without having to surface for longer periods.

A top German security panel headed by Chancellor Angela Merkel has turned down Pakistan’s request for supply of air independent propulsion (AIP) systems for its submarines that would allow them to stay underwater for weeks, people familiar with the matter said.

The decision taken by the German Federal Security Council headed by Chancellor Merkel was conveyed to the Pakistan embassy on August 6, people cited above said on conditions of anonymity.


Pakistan had made the request for access to the air independent propulsion system that can recharge submarine batteries without having to surface for longer periods. [the following bolded by Pete]  Pakistan had proposed the upgrade for submarines in its inventory and the Yuan class submarines being manufactured under joint China-Pakistan project in China.

...Pakistan watchers in Delhi said the primary reason for Germany to take a hard stance on Pakistan’s request was being attributed to its role in promoting terror, particularly Pakistan’s failure to cooperate in identifying the perpetrators of the truck bomb attack on the Germany Embassy in Kabul in May 2017..."
SEE FULL HINDUSTAN TIMES REPORT (WHICH ALSO HAS GOOD LINKS)
PETE COMMENT
Yuans are China's most advanced conventional submarines, but they use older, less advanced, AIP technology.
Pakistan's terrorism connections is one valid reason for the German rejection. 
But I would say the risk of Germany's FC-AIP technology going to China would be the main concern. Pakistan would require extensive and sensitive German/Siemens help to integrate the
FC-AIP technology into the Yuans. 
All through that process  Chinese technicians working on Pakistan's Yuans (in China and Pakistan) would have access to the FC-AIP technology and especially how to integrate it into Chinese designed submarines (eg. Pakistan's Yuans). Then China would reverse engineer the FC-AIP technology and learn how to integrate it into submarines. 
German, Western and Indian navies would find Chinese and Pakistani subs would be more of a threat with world class FC-AIP. Also China would market Yuans (with FC-AIP) in competition to Germany's TKMS submarine builder. China would have the competitive business advantage of cheaper labour and a government willing to heavily subsidize submarine export prices to get a market and/or strategic foothold. 

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