
The decision is controversial. The ROCAF evaluated jet trainers produced by Korea Aerospace Industries (the T-50) and Leonardo (the M346). In 2014 AIDC signed an MoU with what was then Finmeccanica to buy 66 M346s for approximately $2.1 billion. Most of them would have been built by AIDC in its Taichung facility. But following the victory of Taiwan’s pro-independence party in last year’s general election, new President Tsai Ing-Wen pledged to boost the island’s own defense industry. Leonardo reportedly reduced the price of its M346 offer by about 25percent, but to no avail.
Early last year, a former director of AIDC who was known in Taiwan as “the father of the IDF” publicly criticized the plan to develop the XT-5, which will be derived from the existing two-seat operational conversion version of the IDF. Retired ROCAF General Mike Hua Hsi Chun said that it would be better to adopt an alternative proposal from AIDC, to produce a new version of the AT-3. Another prominent retired ROCAF general told AIN last week that he also opposed the XT-5 development, on cost and timescale grounds. He said that Taiwan should have waited for the outcome of the U.S. T-X competition, and then negotiated for licensed production with the winning American contractor. The additional cost to Taiwan of developing the XT-5 is likely to be about $1.5 billion.
(General Hua died just days before the go-ahead for the XT-5 was given. He was honored in an elaborate funeral service last week that included flypasts by formations of the IDF and the AT-3. In addition to his stewardship of AIDC, Hua was noted for being one of the ROCAF’s first cadre of U-2 pilots. In a joint operation with the U.S. Central Intelligence Agency , Hua and other ROCAF pilots flew the spyplane over mainland China in the early 1960s.)