It was gratifying but bittersweet for
Xu, who was left with a bill for port and towage costs. For, the US$20 million
was just the Varyag’s auction price, and he had to foot the bill for another US$120
million for the deal from 1996 to 1999. The total cost of acquiring the Varyag had
eventually worked out to more than US$30 million: $25 million to the Ukrainian
government for the hull, nearly $500,000 in transit fees, and some $5 million
for the towing. To raise this amount up-front, Xu had to sell his palatial home
in Hongkong SAR (The Peak at 37, Deep Water Bay Road) in 1999 and mortgage his
280,000 square feet property on Peng Chau. Xu was saddled with the costs
because many of the PLAN officials who had first approached him to take on the
mission had either died or were in jail, and were therefore unavailable for
lobbying on his behalf within the PLAN HQ or the CMC. For instance, Ji Shengde
was sacked and given a suspended death sentence in 2000 for his role in a
Fujian smuggling scandal. As delays and costs mounted, Xu had to liquidate more
of his personal assets and also had to neglect his own businesses. He had to
borrow from his acquaintances, including HK$230 million from one friend. He
subsequently spent 18 years paying back the debt in full, with interest, with
the last payment clearing in 2014. Xu had requested China’s State Council for
years to be financially compensated, but Beijing ended up paying him only the $20
million auction price, and insisting that Xu would be compensated for other
costs only if he provided expense receipts for project start-up and
mobilisation costs, ferrying costs, and costs incurred for the meals,
beverages, gifts and stacks of US dollar bills that were used by Xu and his
team to buy over the involved Ukrainian parties/officials.
Significant Timelines
· Keel-laying
of the aircraft carrier Riga (later called Varyag) at Shipyard 444 (now Nikolayev South) on December 6, 1985.
· On March 31, 1987,
Admiral Liu Huaqing, the People’s Liberation Army (PLA) Navy commander
(1982-1988), submitted an internal memo to the PLA Staff Headquarters and
National Defense Technology and Industry Committee on developing the core
strengths of the PLAN, which included developing aircraft carriers and nuclear
submarines. the Central Military Commission in May 1987 initiated the first and
only “Pilot Warship Captain Class” (feixingyuan jianchang ban) at the Guangzhou
Warship Academy. The program selected the military’s most talented pilots to
undergo surface warship vessels leadership training.
· Designed
by the Nevskoye Planning and Design Bureau, the Riga is launched December 4,
1988.
· Riga
renamed as Varyag in late 1990.
· Outfitting
stops by 1992, with the ship structurally complete.
· A
Macau-based company on March 19, 1998 wins the bid to buy the Varyag for $20
million. The following day, COSTIND personnel from China begin ferrying the 40
tonnes of aircraft carrier design/engineering documentation and some critical
manufactured sub-systems and components back to China.
· One
Su-33 carrier-based H-MRCA prototype aircraft (T-10K-3) is acquired from
Ukraine in 2001, along with a fully functional UPAZ-1A buddy-buddy aerial refuelling pod (developed by
Russia’s Scientific Production Enterprise Zvezda, or NPP Zvezda), both of which are subsequently
back-engineered. The pod is back-engineered by China Research Institute
of Aero Accessories Aerospace Life-Support Industries, an AVIC subsidiary.
· The
Varyag takes six hours to cross the Bosphorus Strait escorted by 27 vessels,
including 11 tug-boats and three pilot boats, 16 pilots and 250 seamen on
November 1, 2001. At 11:45am on November 2, she completes her passage.
· Varyag
gets caught in a force-9 gale and breaks adrift while passing
the Greek island of Skyros on November 3. Sea-rescue workers try to re-capture the hulk, which is drifting
toward the island of Evia.
· The
hulk is taken back under tow on November 7.
· Varyag
is towed through the Straits of Gibraltar, around the Cape of Good Hope, and through the Straits of Malacca. The tugs towing the Varyag
maintain an average speed of 6 Knots (11kph) over the 15,200-nautical-mile
(28,200km) journey, calling for bunkers and supplies at Piraeus, Greece; Las Palmas, Canary Islands; Maputo, Mozambique; and Singapore en route.
· Varyag
enters China’s territorial waters on February 20, 2002.
· The
vessel arrives on March 3 at Dalian in northeastern China’s Liaoning province and is moored
at the Dalian Shipbuilding Industry Company
(DSIC), which is owned by China Shipbuilding Industry Corp (CSIC).
· Ukraine provides marine propulsion technology in
late 2002 to China’s Harbin Turbine Company for restoring the Varyag’s
steam-boilers to fully functional configuration.
· A
Zinc Chromate primer is applied to the Varyag’s main deck in early 2006 at
Dalian.
· China expresses its wish to procure up to 50 Su-33s from
Russia in early 2006, but wants to initially buy only two Su-33s for
trials-and-evaluation. Russia refuses to make the Su-33 available for export.
· No.112
Factory of Shenyang Aircraft Corp, the 601 Institute (Shenyang Aircraft
Design Institute), 603 Aircraft Design Institute (later named the First Aircraft Institute of AVIC-1) and the 606 Institute (Shenyang Aero-engine
Research Institute) commence R & D work on developing the carrier-based
J-15/J-15S ‘Flying Shark’ carrier-based H-MRCA versions in mid-2006.
· Designs
of the J-15 and J-15S are frozen in July 2007.
· Production
of the first J-15 and tandem-seat J-15S commences in January 2008.
· The
first carrier-based J-15 H-MRCA prototype is assembled by October 2008.
· The Institute of Mechanical and Electrical Engineering of
Zhengzhou (also known as 713 Institute) in 2008 succeeds in back-engineering
the UDAV-1M
254mm RBU-12000 ten-tube ASW mortar and its KT-153M launcher (both designed by
the Kolomna-based KBM Machine-Building Design
Bureau and built
by Russia’s ‘SPLAV’ Federal State Unitary Enterprise State Research &
Production Association) and the 111CZG ASW mortar round. Series production of these cloned products is undertaken by the 2nd
Machinery Factory in Baotou, Inner Mongolia.
· The
Varyag is moved in late April, 2009 from its pier to a dry dock about 2 miles
distant.
· At
the Wuhan Naval Research Institute/711 Institute or
the China Ship Design Institute, the PLAN in 2009 embarks on building a
full-scale deck and island mock-up of the Varyag next to Lake Huangjia near
Wuhan.
· A
new PLAN air base located at Xingcheng, 28km southwest of Huludao on the shore
of the Bohai Sea and 300km north of Qingdao, is constructed between April 2009
and June 2010 to house two ski-jumps each inclined
with a 12-degree up curve) and barrier arrested (STOBAR) facility, and 24 carrier-based H-MRCAs, and also
serve as the PLAN’s premier naval aviation training facility.
· Brazil
and China in mid-2009 sign a contract under which PLAN personnel are to be
trained on-board Brazil’s aircraft career NAe Sao Paulo.
· The
first J-15 prototype, powered by two Russian AL-31F turbofans, makes its maiden
flight on August 31, 2009.
· The
J-15’s first takeoff from a land-based simulated ski-jump occurs on May 6,
2010.
· Installation
of weapons suites on board the Varyag takes place in April 2011.
· The
PLA’s Chief of General Staff Staff, Gen Chen Bingde, confirms on June 7, 2011 that China’s first domestically designed aircraft
carrier is under construction.
· Ministry of National Defense spokesman, Senior Colonel Geng
Yansheng, states on July 27, 2011 that China is using an old aircraft carrier
platform for scientific research, experiment and training.
· The
refitted Varyag begins her first sea-trial in the Bohai Sea on the morning of
August 10, 2011 after an eight-year-old refitting process.
· Gen
Ma Weiming, a professor at the PLA Naval University of Engineering, states on
April 28, 2012 that Chinese engineers are trying to develop an electromagnetic
aircraft launch system (EMALS) for China’s future aircraft carriers.
· The
990 feet-long Varyag is commissioned into service as CV-16 Liaoning on
September 25, 2012. The pennant number denotes the 16 years that were spent in
procuring and refitting the vessel.
· Liaoning
sails out in early November, 2012 for sea-trials.
· The
first J-15 bolter trial on the Liaoning takes place on November 20, 2012.
· The
vessel receives its first two Shenyang J-15 H-MRCAs combat aircraft on November
23, 2012. The two J-15s undertake the official takeoff and landing trials on
November 25, 2012.
· In
early 2013, the Liaoning enters its home-port at Dazhu Shan, 30km southwest of
Qingdao in Shandong Province. The port occupies a water area of a few million
square metres, with a maximum depth of more than 20 metres and a fairway that
is several hundred metres wide. It is protected by a breakwater that extends
almost 10,000 metres into the water.
· In
mid-2013, the Changxingdao Island-based shipyard (owned by Shanghai-based
Jiangnan Shipyard Co Ltd) begins hull construction of
the PLAN’s first of six 22,000-tonne Type 081 helicopter carriers (LPH).
· The
Liaoning makes its first visit to the Yulin Naval Base on Hainan Island in
September 2013. This is its maiden voyage to the South China Sea.
· The
Liaoning CV-16 sails with two Type 051C guided-missile destroyers and two Type
054A guided-missile frigates as escorts to the South China Sea on November 24,
2013 for a scientific and training mission. The convoy arrives at Yulin on November 28,
2013. It takes three days and nights sailing 1,500nm
to reach Yulin at an average speed of 20nm/hour.
· In mid-January 2014, Wang Min, a Communist Party secretary of
Liaoning province, tells
delegates at the 12th Provincial People’s Congress that the first
indigenously built aircraft carrier is under construction at DSIC and would
take six years to complete. Wang adds that the PLAN needs a total of four
aircraft carriers by 2020.
· US Defense Secretary Chuck Hagel on April 7, 2014 becomes the first foreign visitor to take a two-hour tour of the Liaoning.
· Construction of a 700 metre-long docking pier for the
Liaoning is completed at Yulin. The pier’s construction had begun in 2012.
· Admiral Liu Xiaojiang, formerly a political commissar of PLAN;
Vice Admiral Ding Haichun, a deputy political commissar of PLAN; and Rear
Admiral Ma Weiming, a PLAN expert in “naval propulsion and electrical
engineering” confirm in March
2015
that the first China-built aircraft carrier—Type-001A—would be a medium-sized
vessel in the 53,000-ton range and its construction has been underway since
2013 at DSIC.
· China is expected to launch the Type-001A, on December 26, 2015 to mark the 122nd
birthday of Chairman Mao Zedong. Last August, President Xi Jinping had visited DSIC to inspect the progress of work on
the Type-001A.