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How do sales work for a shared development project, E.G. the JF-17.

This is a discussion on How do sales work for a shared development project, E.G. the JF-17. within the Strategic Defense forums, part of the China Defense & Military category; Just curious because both China and Pakistan put in 50% of the development costs for the JF-17 so I wonder ...

  1. #1
    legoboy is offline New Member
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    How do sales work for a shared development project, E.G. the JF-17.

    Just curious because both China and Pakistan put in 50% of the development costs for the JF-17 so I wonder how selling them works. Would both the countries have the right to sell, and it would be like best price offered wins.

    Like would Pakistan offer 30 for 1 million and China offer 30 for 800 thousand and therefore China would get the contract or would it be the profit for the sales is split 50/50.

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    plawolf is offline Senior Member
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    Re: How do sales work for a shared development project, E.G. the JF-17.

    The Chinese and Pakistanis are working together to present a joint bid. It would be silly to get into a bidding war with you own partner.

    The exact details of the work and profit share would have to be negotiated between the two sides, but just because they both put in 50% of the money does not necessarily mean they will share work and profits right down the middle.

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    CottageLV is offline Banned Idiot
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    Re: How do sales work for a shared development project, E.G. the JF-17.

    Quote Originally Posted by legoboy View Post
    Just curious because both China and Pakistan put in 50% of the development costs for the JF-17 so I wonder how selling them works. Would both the countries have the right to sell, and it would be like best price offered wins.

    Like would Pakistan offer 30 for 1 million and China offer 30 for 800 thousand and therefore China would get the contract or would it be the profit for the sales is split 50/50.
    Pakistan is like Canada and Spain in the JSF program, they do nothing, at least nothing seriously technical, but simply provide money. The J17 program was an aide to Pakistan to counter India, along the way allowing China to make some money, also giving Chengdu Bureau's young engineers some practices.
    It's similar to the Tigershark project, aimed solely to export. No major nation would take this plane seriously, other than those that don't matter, like Pakistan.

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    A.Man is offline Senior Member
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    Re: How do sales work for a shared development project, E.G. the JF-17.

    China does not need that money at all. CAC only, I believe, needs the money to cover the imports costs. The biggest profit for the project is that Pakistan will not fall. To China, a few billion of dollars is just a drop of water in the sea. The best way to keep their a trillion of dollars in the US is to give some money away and stand tall.

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    plawolf is offline Senior Member
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    Re: How do sales work for a shared development project, E.G. the JF-17.

    Quote Originally Posted by CottageLV View Post
    Pakistan is like Canada and Spain in the JSF program, they do nothing, at least nothing seriously technical, but simply provide money. The J17 program was an aide to Pakistan to counter India, along the way allowing China to make some money, also giving Chengdu Bureau's young engineers some practices.
    It's similar to the Tigershark project, aimed solely to export. No major nation would take this plane seriously, other than those that don't matter, like Pakistan.
    That is quit frankly a ridiculous statement.

    It is wrong and crass to belittle and dismiss Pakistan's contribution to the JF17 so flippantly.

    Pakistan may not have been an equal partner in terms of bring technological know-how to the programme, but their contributions are considerable and fundamental in shaping the JF17 into the aircraft it is today.

    Aside from the cash, the biggest contribution Pakistan has brought to the project is their extensive experience with operating many western types (both with the PAF, but also through its close collaboration with the likes of Turkey and UEA). This is just as important in making a great fighter as having the technological know-how, and the 'greats' of modern fighters like the F15 only become as good as they are because of detailed and in-depth input from operational combat pilots, and this model has become the norm throughout the world because of how effective and successful it is.

    The first FC1 prototype that CAC came up with on their own was almost a different aircraft to what the JF17 is today, and Pakistani input was fundamental in the changes, which we can all agree made the plane far better. There is no doubt that CAC learnt a thing or two from Pakistan's input with the JF17 that will no doubt benefit future planes for the PLAAF.

    Your suggestion that no 'major' nation would take this plane seriously is as flawed as it is condescending and unreasonable, and looks more like an attempt to flame than a seriously thought out point.
    Red___Sword and PhageHunter like this.

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