In a significant setback for China’s naval modernization program, one of its newest nuclear-powered attack submarines sank earlier this year, according to confirmation from two US officials. The Zhou-class submarine, the first of its kind, went down at a shipyard near Wuhan in late May or early June while it was still in the final stages of preparation before going to sea.

The Chinese government has since scrambled to cover up the incident, attempting to keep the news from reaching international audiences. Satellite images revealed floating cranes at the site in early June, signaling a salvage operation, but no official statement has been made by Chinese authorities.

The Zhou-Class Submarine: A New Generation of Nuclear Power

The Zhou-class submarine, part of China’s latest nuclear-powered attack fleet, was built by China State Shipbuilding Corporation, a state-owned enterprise. The submarine features an X-shaped stern, a design aimed at enhancing maneuverability in water. It was seen docked at the Yangtze River near Wuhan, undergoing its final equipping before the unfortunate sinking.

Brent Sadler, a retired US Navy nuclear submarine officer and senior research fellow at the Heritage Foundation, described the event as a "significant development" for China's naval ambitions. The Wall Street Journal also reported the vessel as the first in its class, adding to the shock of the loss.

Questions of Accountability and Corruption

US officials have raised concerns about corruption and internal accountability within China’s People’s Liberation Army (PLA) and defense industry, citing the incident as a reflection of deeper problems. A senior US official noted,

"In addition to questions about training standards and equipment quality, this incident highlights the PLA’s long-standing issues with corruption and oversight within China’s defense industry."

The sinking has drawn attention to broader challenges in China’s defense sector, particularly following Chinese President Xi Jinping’s renewed efforts to combat corruption within the military. Over the past decade, dozens of top generals have been sacked or investigated as part of Xi’s anti-corruption drive. In July 2023, Xi reiterated that the military should remain loyal to the Communist Party and that corrupt elements must be removed.

How Did the Incident Come to Light?

The first clues about the incident came in the summer when Thomas Shugart, a former US Navy submarine officer and senior fellow at the Center for a New American Security, noted unusual activity at the Wuchang Shipyard near Wuhan. Commercial satellite imagery showed floating cranes at the site, suggesting a potential salvage operation for a submerged vessel.

At the time, Shugart speculated that the activity might involve a new type of submarine but did not initially realize it was nuclear-powered. In an interview this week, Shugart compared the cover-up to a hypothetical incident involving the US Navy, saying,

"Can you imagine a US nuclear submarine sinking in San Diego and the government hushing it up? I mean, Holy Cow!"

Salvage Efforts and Potential Risks

The submarine has since been salvaged, but experts estimate that it will take many months before the vessel can return to service. According to Shugart, water would have infiltrated the entire boat, requiring a complete overhaul of electronics and possibly the replacement of the electric motors. Despite fears of a potential nuclear leak, the risk is believed to be low, as the submarine’s reactors were not yet operating at full capacity when it sank.

Speaking in Taipei on Friday, Taiwan’s Defence Minister Wellington Koo confirmed that authorities had been monitoring the situation through intelligence and surveillance but did not provide further details.

China’s Expanding Submarine Fleet

As of 2022, China’s submarine fleet comprised six nuclear-powered ballistic missile submarines, six nuclear-powered attack submarines, and 48 diesel-powered attack submarines, according to a Pentagon report. The US Department of Defense projects that China’s submarine force could expand to 65 by 2025 and 80 by 2035. Despite this growth, the sinking of the Zhou-class submarine raises concerns about the quality control and training within the PLA Navy.

Conclusion: A Blow to China's Naval Ambitions

The sinking of the Zhou-class nuclear-powered submarine marks a significant challenge for China’s naval ambitions, especially as it strives to enhance its maritime capabilities and project power in the Indo-Pacific region. The incident also exposes deep-seated issues of corruption and accountability within China’s defense sector, issues that have been acknowledged by President Xi Jinping himself. While efforts are underway to recover and repair the vessel, the accident is a stark reminder of the risks inherent in China’s rapid military expansion.

For further updates on similar issues and investment opportunities, explore the Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and stay informed with the Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News- Finance Saathi.

Join our Trading with CA Abhay Telegram Channel for stock market trading insights and the Finance Saathi Telegram Channel for regular updates on share markets and IPOs.

Start your stock market journey by opening a free demat account with Choice Broking FinX.