The Hong Qi-16 (HQ-16) project was reported to have been a joint Russian/Chinese development of the Russian Buk-M1 (SA-11 'Gadfly') and Ural/Buk-2M (SA-17 'Grizzly') Surface-to-Air Missile (SAM) systems, for use from mobile ground vehicles and later from ships. Development is believed to have started in China around 1998, and started with the HQ-16 which is believed to be an improved version of the Buk-M1 system. This system is believed to have the Chinese export designator MD-2000. It was suggested that a naval version of improved HQ-16 missiles, designated Hai Hong Qi-16 (HHQ-16), would be used on the Chinese Sovremenny-class destroyers purchased from Russia, as later upgrades to the existing Urugan (SA-N-7 'Gadfly') missiles, but this has not been confirmed. In 2003 reports of a further upgrade programme suggested that an HQ-17 version was being developed with a range of 45 km, and that this system was based on the Ural/Buk-2M version. A naval HHQ-16 or -17 version has been developed with a Vertical Launch System (VLS), and this is fitted in Luyang 1 (Type 052B)-class destroyers with 48 missiles, and in Jiangkai II (Type 054A)-class frigates with 32 missiles per ship. The HQ-17 may include digital electronics, new display screens and improved training and simulation facilities, similar to those being offered by Russia for the Buk-MB upgrade programme.