Thailand’s embattled submarine deal with China—signed in 2017 and valued at 13.5 billion baht—is reaching a final decision point after years of delays, political backlash, and technical hurdles.
Defence Minister Phumtham Wechayachai has stated that a verdict will be reached by the end of May or early June, following consultations with the Royal Thai Navy, Chinese authorities, and German officials.
Original agreement:
- Signed under a government-to-government arrangement with China Shipbuilding & Offshore International Co.
- Included a German-made MTU diesel engine—later blocked by Berlin due to the EU arms embargo on China.
Engine replacement issue:
- China proposed a CHD620 engine made domestically.
- This substitute caused further delays and months of debate.
- A Thai Navy delegation traveled to China to inspect the engine—test results are pending review.
Financial implications:
- Cancellation would mean forfeiting up to 8 billion baht already paid.
- Significant investment already made in:
- A newly formed submarine squadron
- Dockyard construction
- Training of personnel
Diplomatic and strategic considerations:
- Germany reaffirmed it will not allow export of the MTU engine due to NATO and EU obligations, as confirmed by German Defence Minister Boris Pistorius
- Thai officials also consulted with Pakistani diplomats, who reported that their Chinese submarines are operating effectively—possibly easing concerns about the CHD620 engine’s reliability.
- Phumtham emphasized that the decision will be handled with full transparency. He called on the public to avoid stirring political or diplomatic tensions, urging a calm and fact-based approach:
“Let’s not stir tension or damage international relations.”
Whether Thailand pulls the plug or powers through, the outcome will be less about strategy—and more about saving face, cash, or both.
