TAIPEI - China's state-run Xinhua News Agency announced Aug. 10 the  beginning of sea trials for China's first aircraft carrier, the former  Soviet aircraft carrier Varyag.

 China's first aircraft   carrier, the former Soviet carrier Varyag which China bought from  Ukraine in 1998, undergoes refitting at the port of Dalian on July 4.  The aircraft carrier started its first sea trial Aug. 10, the state news  agency Xinhua said   (AFP) 
"China's refitted  aircraft carrier left its shipyard at Dalian Port in northeast Liaoning  Province on Wednesday morning to start its first sea trial," said the  Xinhua report. "Military sources said that the first sea trial was in  line with schedule of the carrier's refitting project and would not take  a long time. After returning from the sea trial, the aircraft carrier  will continue refit and test work."
Photos of the Varyag indicate it has been outfitted with  an active phased array radar (similar to the U.S. Aegis System), a Type  381 Sea Eagle Radar, a 30mm Type-1030 close-in weapon system, and an  FL-3000 Flying Leopard air defense missile system.
The large  number of personnel on board recently and the testing of the engines,  with smoke belching from the funnel, indicate that the propulsion  systems have been installed and the ship is reaching seaworthiness, said  Gary Li, an intelligence analyst for U.K.-based Exclusive Analysis.
Debate  and mystery still surround the former Kuznetsov-class carrier. Procured  by a Hong Kong travel agency in 1998 for $20 million, purportedly to  serve as a casino in Macau, the Varyag has been the focus of debate  among China watchers ever since it bypassed Macau for the Dalian  Shipyard in northeast China in 2002.
The Chinese-language media  are still arguing over whether the vessel will be christened the Shi  Lang, after the Ming-Qing Dynasty naval admiral who conquered Taiwan in  1681, or Liu Huaqing, the father of China's modern Navy.
What is  certain is that it will not be the last Chinese aircraft carrier. There  are indicators, though anecdotal, that China is preparing to build up to  three carriers at the Jiangnan Shipyard on Changxing Island in  Shanghai.
Job-wanted advertisements in local newspapers have dropped hints the work is for a carrier program, Li said.
Li  said one recent job advertisement for a heavy-lift vehicle contract  said it sought "drivers to work on carrier project." There have also  been reports by residents that "blonde foreigners," possibly Ukrainian  engineers, have been seen living in a hotel near the shipyard.
Observers  must be careful not "to fall into the trap of using every bit of gossip  from some dockside fruit seller as fact," he said. China's carrier  program has become a "heavy rumor mill." With 11 aircraft carriers at  its disposal, the U.S. has little to fear from China's carrier program.  Even if China had several aircraft carriers, "I don't think it will  reshape the strategic balance much in favor of China," said Zhuang  Jianzhong, vice director of the Center for National Strategy Studies at  Shanghai Jiao Tong University.
However, Taiwan, the Philippines  and Vietnam face a different scenario. China has threatened to invade  Taiwan if it continues to resist unification. An aircraft carrier off  Taiwan's eastern coast would close off access by the U.S. military  coming to the island's aid during a war.
Vietnam and the  Philippines have been facing problems with an aggressive Chinese Navy in  the South China Sea, which China claims as a "core interest." On Aug.  3, the People's Daily, China's main Communist Party newspaper, warned  the Philippines against building a shelter on the disputed Nansha Island  in the Spratly Islands, calling it "a severe strategic error." As part  of Vietnam's insurance against continued Chinese threats, the Navy is  procuring Russian arms, including six Kilo-class attack submarines, two  Gepard-class missile frigates and 20 more Sukhoi Su-30 fighter aircraft  armed with anti-ship missiles. Vietnam's Navy has five aging  Russian-built Petya-class frigates, two North Korean-built Yugo-class  midget submarines, along with several missile corvettes. Any conflict  between the navies of China and the Philippines or Vietnam would be an  "unequal contest," said Carl Thayer, a Southeast Asia specialist at the  Australian Defence Force Academy.
"China's South Sea Fleet should  be quite capable in fending off any threats that Vietnam could offer.  The Philippines Navy in its present state would be destroyed at a  distance due to lack of sensors, appropriate strike weapons and air  cover," Thayer said.
At present, the Vietnamese could land some punches, he said.
"Vietnam  might be able to pull off a few surprises through deception with  hit-and-run raids by guidedmissile fast-attack craft or by luring  Chinese ships into range of its Bastion land-based anti-ship missiles,"  he said.
Vietnam possesses some "potent" anti-ship missiles but lacks the experience to stand up to China's South Sea Fleet.
Such  a conflict would most likely occur with sufficient warning time for the  Philippines and Vietnam to withdraw their naval forces and not engage  in a head-to-head naval confrontation, Thayer said.
"The United  States has promised to assist the Philippines with maritime domain  awareness, and it is not inconceivable that the U.S. might forewarn  Vietnam if China began to build up and deploy a naval force on Hainan  Island," he said.
Chinese plans to field one or more aircraft  carriers would change the equation. China's South Sea Fleet has already  been improving 3-D combat at sea - surface, subsurface and air - with  numerous exercises over the past two years. China could also bring in  elements from the East and North Sea fleets to assist in any sea battle  in the South China Sea.
CHRONOLOGY 
*  1992: Soviet Union stops construction of the Varyag, a former  Kuznetsov-class carrier, at 60 percent complete.Ownership is later  transferred to Ukraine.
* April 1998: Ukraine puts the Varyag up  for auction. The Chong Lot Travel Agency procures the ship for $20  million for use as a "casino" in Macau.
* 2001: Ukraine sells a prototype of the Sukhoi Su-33 carrier-borne fighter jet to Shenyang Aircraft Corp.
* March 2002: Vessel arrives in Dalian Shipyard, China.
* June 2005: Refurbishment begins.
*  September 2008: The PLA Daily newspaper announces that 50 pilots were  inducted at the Dalian Naval Academy to undergo training on ship-borne  aircraft flight.
* 2009: A mock-up of the Varyag is constructed at the Wuhan Naval Research Facility near Huangjie Lake, Wuhan, China.
* 2010: Photos surface of the J-15 Flying Shark, which is identical to the Su-33.
*  2011: April: A People's Daily website reports the Varyag has entered  its last stage, with the hull being painted light gray-blue, standard  for all ships in the Chinese Navy.
* June 7: Gen. Chen Bingde,  chief of the General Staff of the People's Liberation Army, admits in a  newspaper interview with the Chinese-language Hong Kong Commercial Daily  that China has an aircraft carrier program.
* July 27: The  Chinese Defense Ministry officially confirms the Varyag is being  refitted as a "scientific research, experiment and training" vessel.
*  July 29: Gen. Luo Yuan, a senior researcher with the Academy of  Military Sciences, tells the Beijing News that China would need a  minimum of three aircraft carriers.