The Wall Street Journal, January 14, 1997. Page 14

China has quietly agreed to purchase two advanced warships from Russia, extending military ties with its one-time adversary that are thought to be making some US policy makers and other Asian countries nervous.

The two countries signed a pact on the sale last month during premier Li Peng's trip to Moscow, according to the latest issue of Jane's Defense Weekly and China military analysts. China will pay $800 million for two Sovremenny-class destroyers for delivery in two to four years.

Acquisition of the 7,200-ton warships, which would be aremed with cruise missiles, updates the technology of China's fleet by a decade, the analyst said. It also moves China toward its goal of building a blue-water force that could enhance its power in potential conflicts. Last year, China's navy staged military exercises off Taiwan as a show of displeasure over what Beijing sees as moves toward independence for the island, which Beijing considers part of China. Those maneuvers stirred fears of a more militaristic China.

"The purchase goes a long way toward improving [China's] strike capabilities," said Robert Karniol, Jane's Asia-Pacific editor. If "Taiwan traditionally has had an edge in quality of equipment and people. . . this purchase and the capabilities [China] is developing are slowly eating into that edge."

In addition to the warships, China's possible purchase of as many as 50 top-of-the-line Sukhoi Su-30 MK attack jets from Russia would further enhance its offensive capabilities, especially in a clash with Taiwan, the analyst said. Beijing and Moscow are thought to be considering a deal that could be signed later this year, they said.

Over the past few years, Moscow has sold Beijing four Kilo-class diesel submarines and about 70 Su-jets, a less advanced version of the Su-30. The two sides have agreed to set up an Su-27 production line in China's city of Shenyang, and many Russian scientists are working on various military programs in China.