China is already the world's largest trading nation.
And it already has an economy larger than the USA, in terms of actual output of goods and services, as per the IMF and World Bank.
Those 2 factors means China has the capacity and also a reason to build a Navy to protect its overseas investments and trade.
And that Navy will have to be sized up against its competitors, which means a build rate of 2-3 per year.
I haven't seen any projections on how Chinese shipbuilding costs will change either, and I agree that labour is just one part of the cost.
But I think it's instructive to compare the Yuan and the Soryu, which are broadly comparable in terms of size, technology and production rate.
The Yuan is probably around $300M (based on the export proposal to Thailand) and the latest Soryu is $550M.
So what accounts for the difference? I suspect a lot of this is related to labour costs.
Of course, the Yuan and Soryu are much simpler submarines than the Type-95, but let's try to compare the latest SSN/SSGN submarines:
1. The first Yasen was only $1.6B. I'm ignoring the huge increase in costs for the subsequent submarines which is completely illogical.
2. The latest Virginia VPM submarines are $3.2B. And they benefit from a larger production run.
3. The Astutes (which don't have a missile modules) is $1.8B.
So let's say that the Type-95 costs around $1.6B in total, like the Yasen.
And that the Type-95 takes 9 million man hours to construct, like the latest Virginia.
There is also an old Type-54 Frigate estimate of 3.2 million man hours costing $75M
So the Type-95 takes 9 million man hours, which costs roughly $225M today.
But if wages do double, then that is a direct increase of $225M.
That is still significant
Why do you think the 095 would be like a SSGN?
Looking back at PLAN submarine roles, they have never adopted the doctrine of relying on them as VLS launch platforms. Instead, PLAN submarines rely primarily on stealth and torpedoes. Most of China’s rivals have relatively good air defense.
Regarding the cost analysis, I don’t think it’s very instructive to compare the potential costs of a 095 boat and the Yasen, Virginia etc. simply because their roles might be radically different. These submarines essentially provide SSGN functions, giving cheap anti land firepower, ideal in low intensity conflicts.
China on the other hand is more in need of and has a design history/doctrine in favor of a boat more like the Seawolf class within SSNs, but the best comparison might be “a larger, faster Yuan with unlimited range”.
Such as submarine would ditch the cost of VLS subsystems but will gain cost in other areas.
Shipbuilding costs in China seem to be analogous to US costs, slightly below EU/Japan costs. Burkes cost 770 million and 055s cost 1 billion, and the 055 is slightly larger.[/QUOTE]
Previously, the Chinese Navy was a conventional submarine force.
And those submarines could rely on stealth and torpedoes, because they could rely on silent batteries or AIP.
But batteries and AIP impose limits on overall endurance and range.
Plus those systems will be rapidly drained when a submarine has to operate at full speed underwater.
Nuclear powered submarines don't suffer from these disadvantages, but they do have to keep the reactor running all the time.
And a Chinese SSN/SSGN is unlikely to be as quiet as a Virginia/Yasen, although I would expect it to be equivalent to between the early-Later Los Angeles.
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The US Navy never went the SSGN route either, until they found themselves with 4 spare Ohio class submarines.
But now all the new Virginia SSNs are being equipped with cruise missile payload modules.
Ditto with the Russian Yasens.
Q. So why are both Russia and the USA going with SSGNs instead of SSNs?
A. They must see definite advantages in using VLS missiles in either the anti-ship or ground-attack role.
And the same logic that applies to the Virginia and Yasen, should also apply to the Type-95.
We did see a test Type-93 variant built as an SSGN, which also means the Chinese Navy did see it worthwhile to explore the concept.
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The Yasen/Virginia doesn't provide cheap land-attack firepower, because the platforms costs billions, whilst a Tomahawk costs $1M.
Cheap land attack firepower for China is provided by cheap missile trucks based on the Chinese mainland, and which can reach all of its neighbours and its core interests within the First Island Chain.
But the SSGN VLS missiles do provide the ability to launch attacks on land targets, pretty much anywhere in the world, and with complete surprise if the submarine has remained undetected.
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Where did you get the Burke costs from?
The Burkes actually cost $1.8B, whilst I understand the Japanese/Korean versions come in around $1.1B-$1.3B.
And if the Type-55 is $1B, that sounds about right.
So China does have a huge cost advantage over the USA, although it is smaller than with Japan/Korea.