The German minister made it clear that Germany cannot proceed with the engine sale, as the EU prohibits arms and military equipment exports to the People’s Republic of China,” Wechayachai said, following their bilateral meeting in Berlin during the 6th United Nations Peacekeeping Ministerial Meeting (UNPKM 2025).

Thailand’s deal to acquire Yuan-class submarines from China, initiated in 2017 under then-Prime Minister Prayut Chan-o-cha, has faced persistent delays. The $393 million contract for three submarines hit a major snag after it was revealed that China could not procure the required German-made MTU diesel engines due to the EU arms embargo on Beijing.
Public concerns during the COVID-19 pandemic further delayed the purchase of the second and third submarines in 2020. In 2022, Thai opposition lawmakers brought national attention to the issue, revealing that construction had stalled over the lack of approved engines.

According to former German military attaché Philipp Doert, China had not consulted with Berlin before specifying German engines in the submarine plans, and the issue only came to light after the contract was signed.
Despite the setback, both nations reaffirmed their long-standing defense cooperation, now in its 163rd year. Germany remains Thailand’s top EU trading partner, and bilateral defense ties include training programs, military education, and procurement consultations.
During the meeting, Thailand also congratulated Germany’s new government under Chancellor Friedrich Merz and welcomed Pistorius’s continued role as Defense Minister, which signals continuity in defense relations.

Future cooperation was also on the agenda, with Thailand expressing interest in collaborating with Germany on cybersecurity and artificial intelligence (AI) to modernize its armed forces. Minister Wechayachai further invited Germany to explore participation in Thailand’s defense supply chain and attend the Defense & Security 2025 exhibition in Bangkok this November.