maybe this has something to do with it
http://www.atimes.com/atimes/China/FJ28Ad04.htmlThe Chinese Dragon submerges
Over the past decade China has been expanding and enhancing its maritime forces to make them blue-water capable. A major focus is submarines, the Chinese Dragon U-boat. An obvious inference is the use of subs in the narrow, shallow Taiwan Strait in a possible conflict with "renegade" Taiwan, but military analysts say submarines are virtually obsolete and would easily be killed by ships and planes in the strait.
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According to US and Taiwan intelligence estimates, China has about 70 submarines (virtually all conventional), it is building more and buying more from Russia. It has one nuclear submarine out of commission, two more being built and eight Kilo-class diesels on order from Russia, to be delivered in 2005 (Russian sources) or 2007 (Chinese sources). David Shambaugh, a leading military analyst at George Washington University, confirms at least 70 submarines, basing his figure on the authoritative International Institute for Strategic Studies on military balance for his article in the Washington Quarterly in 2002.
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In this context, the US, Taiwan and Japan have begun to take China's submarine forces seriously, especially given Beijing's option to ally its maritime efforts with North Korea, another country with a massive, though archaic, and still deadly submarine fleet mostly inherited from World War II.
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this article talks mostly about China and Taiwan, but I've noticed small news items lately of other countries wanting subs. One was in South Amer. was the other one Mexico? Canada? (I'm poking my brain but can't remember)