China plans on making a killing (money wise) from international sales of its cheap AR-2 short-range semi-active laser, air-to-surface missile now suitable for use aboard unmanned combat aerial vehicles (UCAVs) such as China's CH-4.

The AR-2, which succeeds the AR-1 already used against ISIS by CH-4B drones operated by Iraq, is described as "a new missile designed for anti-terrorism operations and low-intensity conflicts" and "perfect for mounting on drones" by a website of the People's Liberation Army (PLA).

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AR-2 is a derivative of the AR-1, which in turn is a derivative of the HJ-10 helicopter-borne anti-tank missile. AR-1 is designed specifically to be carried by UCAVs such as the CH-3 and CH-4.

AR-2 can also be carried by Chinese attack helicopters and other unmanned aircraft after minor technical modifications, said the China Academy of Aerospace Aerodynamics, China's largest military drone exporter and maker of the CH (Caihong) family of aerial drones.

The missile is seen as a tough competitor for U.S., French and Israeli missiles, said the academy. It weighs only 20 kilograms, five kilograms of which is its warhead. The missile has a maximum range of eight kilometers.

But the AR-2's most potent selling point is its cheap price. While the academy refused to reveal the price per missile, it did say the AR-2 will be far cheaper than the U.S. AGM-114 Hellfire air-to-surface missile that costs some $115,000 apiece.

"There are a lot of counterterrorism operations and low-intensity conflicts in the world that create a huge demand for low-cost, high-efficiency weapons to hit cars or light-duty, armored vehicles," said Zeng Like, project manager for the AR-2.

"We believe that most ground targets designated for drones are soft targets or lightly armored vehicles, so using a heavier missile such as the AGM-114 Hellfire for such operations is a waste."

Zeng said smaller, cheaper missiles like the AR-2 are powerful enough to handle those targets, and their lighter weight enables a drone to carry more missiles.

He noted "the AR-2 features strong capabilities and a lower price, so we are positive it will have good market prospects."

Tagschina, AR-2 short-range semi-active laser, air-to-surface missile, unmanned combat aerial vehicles, UCAVs, CH-4, AR-1, People's Liberation Army, China Academy of Aerospace Aerodynamics, Zeng Like