That Yankee mentioned during the livestream that when it comes to hitting Taiwanese military infrastructure, there's practically no difference between 5m and 1m precision. I kinda get the logic—maybe the DF-17 wasn't designed for mobile/high-precision targets in the first place, so even if it has that level of accuracy, it wouldn't really impact its combat effectiveness. If you want the kind of results you're talking about, then the PLARF probably has a whole different system specifically built for that role, rather than trying to force the DF-17—which wasn't optimized for it—into the mission. That kind of design would be way too "middle-of-the-road"—not cheap enough, not efficient enough.
In contrary, I do believe that the DF-17 is meant to engage mobile targets. Otherwise, they wouldn't bother setting up target platform-on-rails in the middle of nowhere in Western China.
However, the key distinction would be said mobile targets would be larger-sized, such as a warship that is at least FFG-sized. This means that if the DF-17's CEP is - Let's say, 5 meters instead of 1 or 2 meters - A damaging hit is still going to be guaranteed, as long as the missile is aimed largely at the central regions of the warship.
I mean, technically you could also use a DF-17 to target, say, the Wanwanese rebel leader's motorcade. But why bother with that 1 or 2-meter CEP, when the warhead is big enough to generate a large enough fireball and shockwave that would engulf and devastate the key segments of the motorcate, as long as the missile strikes in the immediate vicinity of the VVIP cars carrying the targets? Let alone the fact where there are plenty of better options available at the PLA's disposal jobs like this.
I think that while everyone wants the best possible parameters and solutions for everything, but reality rarely enables that.
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