November 5, 2015

Disclaimer: This paper is the product of professional research performed by staff of the U.S.-China Economic and Security Review 

Commission, and was prepared at the request of the Commission to support its deliberations. Posting of the report to the Commission’s 

website is intended to promote greater public understanding of the issues addressed by the Commission in its ongoing assessment of U.S.-

China economic relations and their implications for U.S. security, as mandated by Public Law 106-398 and Public Law 108-7. However, the 

public release of this document does not necessarily imply an endorsement by the Commission, any individual Commissioner, or the 

Commission’s other professional staff, of the views or conclusions expressed in this staff research report.

China’s Military Agreements with 

Argentina: A Potential New Phase in ChinaLatin America Defense Relations

Jordan Wilson, Research Fellow, Security and Foreign Affairs

Acknowledgments: The author thanks R. Evan Ellis, Margaret Myers, and Richard D. Fisher, Jr. for 

their reviews of early drafts. These reviews do not imply any endorsement of this report’s contents, and 

any errors should be attributed solely to the author.
U.S.-China Economic and Security Review Commission 

Table of Contents

Introduction ................................................................................................................................................................3

2015 China-Argentina Agreements............................................................................................................................3

China-Argentina Defense Ties in the Context of Expanding Regional Military Engagement...................................6

Implications for the United States..............................................................................................................................8

Conclusion................................................................................................................................................................13

Endnotes...................................................................................................................................................................14
U.S.-China Economic and Security Review Commission 3 

Introduction

At the conclusion of a state visit to China by Argentine President Cristina Fernández de Kirchner on February 5, 

2015, the governments of China and Argentina released a joint communiqué announcing prospective military sales 

and defense cooperation agreements extending beyond the scope of any made between China and a Latin American 

nation to date. If finalized, these agreements would significantly alter the scope of China’s military exports to the 

region, representing a new level of volume, competitiveness, and technological sophistication and potentially 

creating inroads to other regional markets. This report seeks to outline the emerging details of China’s recent 

agreements with Argentina, analyze their significance within the progression of China’s military engagement with 

Latin America as a whole, and assess potential implications this progression may have for U.S. regional objectives.

2015 China-Argentina Agreements 

China and Argentina publicized their objectives for defense cooperation following a four-day bilateral summit 

between top officials in Beijing in February 2015.1Importantly, this summit followed previous agreements that had 

elevated China-Argentina relations to a “comprehensive strategic partnership” *and founded the “ArgentineChinese Joint Committee on Cooperation in the field of Defense, Technology, and Industry”†

in 2014.

2 A joint 

communique covering defense cooperation, released by both sides following the February 2015 summit, affirmed 

several military agreements previously developed by the Joint Committee and added a new prospective agreement 

regarding the sale of Chinese-made fighter aircraft to Argentina. 3 Altogether, the summit and subsequent 

announcements unveiled or discussed several defense-related elements:

 Aircraft: China and Argentina announced for the first time their formation of a joint working group to assess 

the integration of Chinese-made fighter aircraft into the Argentine Air Force, which would upgrade its 

antiquated and deteriorating fighter fleet.4 This group was tasked with exploring Argentina’s purchase of 

at least 14, but potentially as many as 20 FC-1

‡ or J-10 aircraft, both fourth-generation fighters 

manufactured by the Chengdu Aircraft Corporation, a subsidiary of defense conglomerate Aviation Industry 

Corporation of China (AVIC).5 China’s coproduction with Pakistan of the FC-1, an inexpensive multirole 

combat aircraft,6is likely of interest to Argentina’s defense industry, which has valued direct industrial 

participation in defense procurement.7 As the FC-1 is less expensive and of significantly lower quality than 

the J-10, it would likely be a worthwhile purchase to Argentina only under coproduction terms.8 The J-10,

a more advanced multirole combat aircraft, has been described in U.S. government publications as a 

“modern” fighter comparable in performance to U.S. fourth-generation jets.9,§ Although the J-10 would be 

 

* A “strategic partnership” was initially announced by then presidents Nestor Kirchner and Hu Jintao in 2004; current presidents Cristina 

Fernández de Kirchner and Xi Jinping upgraded the relationship to a “comprehensive strategic partnership” at a meeting in 2014. The 

February 2015 summit was the first held under the new terminology. China has established 47 “strategic partnerships” and 23 

“comprehensive strategic partnerships” with countries around the world. People’s Daily (English edition), “China, Argentina to Establish 

Strategic Partnership,” November 17, 2014. http://en.people.cn/200411/17/eng20041117_164230.html; Xinhua (English edition), 

“China, Argentina Upgrade Ties to Comprehensive Strategic Partnership,” July 19, 2014. http://news.xinhuanet.com/english/china/2014-

07/19/c_133494807.htm; and Feng Zhongping and Huang Jing, “China’s Strategic Partnership Diplomacy: Engaging with a Changing 

World,” European Strategic Partnerships Observatory, June 2014, 7, 18. 

http://fride.org/download/WP8_China_strategic_partnership_diplomacy.pdf. 

† The Argentine-Chinese Joint Committee on Cooperation in the Field of Defense, Science, and Technology is a sub-committee of the 

China-Argentina Inter-Governmental Standing Committee, founded when China and Argentina upgraded their relationship to a 

“strategic partnership” in 2014. Ministry of Foreign Affairs of the People’s Republic of China, Foreign Minister Wang Yi and Foreign 

Minister Héctor Timerman of Argentina Chair First Meeting of Standing Committee between Two Governments, February 6, 2015.

http://www.fmprc.gov.cn/mfa_eng/zxxx_662805/t1235611.shtml. 

‡

“FC-1” is the Chinese designation for this aircraft; “FC” is the export designation for Chinese aircraft. “JF-17” is the designation in 

Pakistan. All orders of the aircraft to date have been from the Pakistani Air Force, with none from the PLA Air Force. Based on a 

program originally launched by China, the aircraft has been jointly produced by both countries since 2003. IHS Jane’s, “CAC FC-1 

Xiaolong,” All the World’s Aircraft, February 3, 2015, 1–2.

§ Chinese military analysts have emphasized the J-10B variant’s advanced phased-array radar and ability to carry advanced Chinese-made 

air-to-air missiles as selling points. Zhao Lei, “J-10 Fighter Jet ‘Good Choice for Argentina,’” China Daily (English edition), May 18, 

2015. http://usa.chinadaily.com.cn/2015-05/18/content_20750586.htm;

Zhang Tao, “Expert: J-10 More Suitable for Argentina,” China Military Online, February 11, 2015. http://english.chinamil.com.cn/newschannels/china-military-news/2015-02/11/content_6351096.htm; and
U.S.-China Economic and Security Review Commission 4 

more costly, since the summit Chinese military analysts have emphasized the advanced phased-array radar 

and air-to-air missiles of one variant in particular, the J-10B, as selling points (which variant Argentina is 

considering is unclear).

10 Argentina has also explored aircraft purchases from France, Israel, Spain, Sweden, 

and Russia,11 but has announced prospective deals only with China and Israel to date; which agreement, if 

any, will ultimately be fulfilled is unclear.12

 Naval vessels: As previously planned by the Joint Committee, China will construct five 1,800-ton P-18N 

corvettes for the aging and underinvested Argentine Navy,13 with up to three of the ships reportedly to be 

coproduced in Argentina. 14 The corvettes will begin the Argentine Navy’s new pointedly-named 

“Malvinas-class”* of offshore patrol vessels, and an icebreaker and two tugboats will also be included in 

the deal.15 Argentina had considered purchasing ships from Brazil, Germany, and Spain over the past 

decade before opting for the P-18N, which was designed by China Shipbuilding Industry Corporation for 

export and sold to Nigeria previously.16 Delivery of the corvettes is expected to begin in 2017.17

 Amphibious armored personnel carriers (APCs): As the Joint Committee had also previously planned, 

China and Argentina will coproduce 100 or more 8x8 VN1 APCs, developed by Chinese defense 

conglomerate China North Industries Corporation (Norinco). Coproduction will take place in Argentina, 

and the vehicles are intended for marketing to other Latin American countries as well, according to 

Argentina’s Minister of Defense. 18 Argentina is opting for China’s offer over Brazilian-made APCs 

(coproduced with Italian company Iveco19) in which it had been interested in the past, a blow to Brazil’s 

regional export ambitions.20

 Military-to-military exchanges: The communiqué also affirmed agreements previously established by the 

Joint Committee regarding officer exchange programs between the People’s Liberation Army (PLA) and 

the Argentine Army, as well as PLA construction of field hospitals in Argentina.21

 Space cooperation: Announced in a separate communiqué but with military ties and potential dual-use 

implications, China will “build and man a new space tracking and control station† on a roughly 500-acre

facility in the southern Argentine province of Neuquén.”22 The facility will be built and operated by China 

Satellite Launch and Tracking Control General (CLTC), a subsidiary of the PLA General Armaments 

Department. 23 This station will provide China with a much-needed southern hemisphere node to 

communicate immediately with its satellites and spacecraft when they are positioned over the region, and 

thus download images or conduct orbital adjustments without waiting for them to fly over Chinese 

territory.

24 It will be particularly useful in tracking China’s forthcoming unmanned missions to the moon 

and Mars.25 Argentina will in return reportedly be able to use up to 10 percent of the station antenna’s time 

and access imagery from China’s surveillance satellites; this will likely be localized and cover a range of 

imagery types.26

 Other dimensions: A host of other cooperative documents were signed at the summit, covering aspects of 

the China-Argentina partnership related to politics, economics, trade, finance, science and technology, 

space exploration, and tourism, among others.27 China notably pledged to invest between $5.8 billion and 

$7 billion in Argentina to build two nuclear plants,28 $5 billion to help build hydroelectric plants, and $2.5 

billion to modernize railways, as part of a package valued at $21 billion total.29

Taken together, these agreements would involve each branch of Argentina’s military and occur within the context 

of broadening engagement across all dimensions of the China-Argentina relationship. Three caveats regarding the

feasibility of these developments must be emphasized, however:

 

Andrew Tate, “China’s J-10 Advocated as Argentine ‘Typhoon Beater’,” IHS Jane’s 360, February 15, 2015. 

http://www.janes.com/article/49002/china-s-j-10-advocated-as-argentine-typhoon-beater.

*

“Malvinas” is the term used by Argentina’s government for the Falkland Islands, which are administered as sovereign territory of the 

United Kingdom but claimed by Argentina. 

† Technically this is termed a “telemetry, tracking, and control (TT&C) center,” able to send and receive data relays. Kevin Pollpeter

(Deputy Director, Study of Innovation and Technology in China Project, University of California Institute on Global Conflict and 

Cooperation), interview with Commission staff, March 9, 2014.
U.S.-China Economic and Security Review Commission 5 

 None of these agreements entail actual legal contracts to date, with latest reports on the prospective aircraft 

acquisition indicating the working group has met to “explore” the purchase but has announced no decision.30

Some sources, unconfirmed by official reports, state that Argentina has already abandoned its consideration 

of the FC-1 and may be leaning again towards Israel’s Kfir fighter,31 though Argentina’s record of constant 

on-again, off-again cycling through multiple fighter negotiations suggests the issue will only be finalized 

in the long-term upon actual delivery of the aircraft.32 Argentina has announced intentions to purchase 

Chinese-made APCs and Z-11 helicopters in the past, only to suspend the deals when problems arose.33,*

 Argentina’s recent budget deficits and tenuous relations with international creditors, highlighted by a 

controversial “selective default” in June 2014,34 may limit its ability to afford these purchases.† Argentina 

will reportedly require funding through commodity-backed loans from China to buy the FC-1 or J-10 

aircraft,35 the first time it will have borrowed on such terms.36

 Argentina’s November 2015 runoff election may replace the current administration with a candidate from 

a center-right party who could be inclined to terminate these deals, although at the time of this writing polls 

predict a tight race between this candidate and a handpicked successor from Kirchner’s party.

37 There would 

be historical precedent for such a shift—prior to successive Kirchner governments, China-Argentina 

relations had been plagued by discontinuity between the policies of different Argentine administrations, 

suggesting bilateral relations may not maintain their momentum after a power transition.

38 Further, these

prospective defense acquisitions have been unpopular among many military officers,39 and approval for the 

space station was secured by the governing party in February only by a narrow margin after intense debate 

in Argentina’s legislature.40

Argentina’s military modernization needs, the impending election, and a desire to continue improving ties with 

China overall will likely prompt a hard push by the Kirchner Administration to make continued progress in its 

remaining months in office. Should these programs be fulfilled, they would represent a profound change in the level

of China’s arms sales to Argentina and the Latin American region overall, as demonstrated in the following section. 

Figure 1: Summary of Prospective China-Argentina Agreements

Air Force Navy Army Space

Platforms FC-1 or J-10 

variant

Icebreaker (1), 

Tugboats (2), P18N Corvettes (5)

APCs Space Tracking and Control Station

Total 

Number

14–20 (if FC-1, 

likely coproduced)

7 100+ 

(coproduced) 

1 (Neuquén Province)

Estimated 

Cost 

(Argentina)

$30–40 million per 

FC-1; $50 million 

per J-1041

$42–50 million 

per P-18N,42

others unavailable

Unavailable 50-year tax exemption granted to CLTC; roughly 

500 acres made available for facility 

Estimated 

Cost 

(China)

N/A N/A N/A Reported $300 million investment by CLTC; 10 

percent of antenna’s time available to Argentina;43

employment of local workers and guards

44

 

* The APC contract was suspended in 2008 due to problems with the four vehicles purchased for evaluation. The helicopter acquisition was 

halted in 2007 when France claimed the Z-11 was an illegal copy of a Eurocopter helicopter and threatened legal action against 

Argentina. R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for 

Hemispheric Defense Studies, Perry Paper Series No. 1, 2013, 103–104. 

† China has been a major creditor to Argentina since its 2001 default and through the 2014 episode, providing financing for large 

infrastructure projects and offering currency swaps to assist it with debt repayment. Argentina’s fiscal challenges are thus best viewed as 

a likely obstacle not to China’s willingness to finance these military deals, but rather to Argentina’s ability to justify undertaking these 

projects to its citizens. Davide Scigliuzzo, “Elliott Unit Extends Legal Fight on Argentina Debt to China,” Reuters, August 28, 2014. 

http://www.reuters.com/article/2014/08/28/argentina-debt-subpoenas-idUSL1N0QY2IO20140828; Charlie Devereaux, “Argentina Said 

to Secure $400 Million More in China FX Swap,” Bloomberg News, January 12, 2015. http://www.bloomberg.com/news/articles/2015-

01-12/argentina-said-to-secure-400-million-more-in-china-fx-swap. 
U.S.-China Economic and Security Review Commission 6 

China-Argentina Defense Ties in the Context of Expanding 

Regional Military Engagement

Should China’s prospective contracts with Argentina be fulfilled, they would substantially increase both the value 

and sophistication of its arms exports to Latin America, and potentially create opportunities for future expansion.

Quantifying China’s Pending Arms Sales to Argentina

Though prices for China’s prospective deals with Argentina are difficult to gauge, estimates indicate that China’s 

military sales to not only Argentina, but also Latin America as a whole, would see a substantial increase should 

these deals be concluded. China’s past official military exports to Argentina have been negligible, valued at $2.6 

million for four older APCs delivered in 2010.45 These sales contributed little to China’s total arms exports to the 

Latin American region, shown in Figure 2, which have grown over the past decade to a region-wide total of $130 

million in 2014.46 For China’s newly announced agreements with Argentina, however, as listed in Figure 1 above, 

some sources have estimated a price of $30-40 million per FC-1 fighter, $50 million per J-10,47 and $42-50 million 

for each Malvinas-class corvette (estimated costs for the other vessels are unavailable).48 Extrapolating from the 

$2.6 million Argentina paid for the four more rudimentary Chinese-made APCs in 2010,49 $65 million could be a 

low estimate for the 100 or more to be coproduced under this agreement. The total value of these agreements can

be estimated to range from approximately $569 million to $1 billion (or $382 million to $550 million in constant 

1990 dollars, for comparison with the data in Figure 2).*

 

* On the low end—assuming Argentina will purchase only 14 fighters (of the FC-1 variety rather than the J-10) and also assuming the 

lowest price for each platform, while not including the three vessels of uncertain value—these deals would still be worth a minimum of 

$569 million if hypothetically aggregated into a single year. Adjusted to constant 1990 dollars for comparison with past data, this would 

be roughly $382 million, well above the current single-year region-wide record of $130 million in 2014. On the higher end, some sources 

indicate the entire package of arms sales, including training and support, could be worth roughly $1 billion, or $550 million in constant 

1990 dollars, according to National Defense University scholar R. Evan Ellis. Notwithstanding the inclusion of the support package, this 

would represent an even more substantial increase over 2014 totals. R. Evan Ellis (Professor, Latin American Studies, U.S. Army War 

College Strategic Studies Institute), interview with Commission staff, August 17, 2015. 

Figure 2: Value of Arms Imports from China, by Country, 1991-2014

Annual (US$ millions, constant 1990 prices)

Source: Stockholm International Peace Research Institute, “The SIPRI Arms Transfers Database.” 

http://www.sipri.org/databases/armstransfers.

0

20

40

60

80

100

120

140

Venezuela

Bolivia

Peru

Ecuador

Mexico

Guyana

Argentina

Latin America

(total)
U.S.-China Economic and Security Review Commission 7 

Either the high or low estimate of these agreements’ value would thus vastly outpace that of any single year’s 

military exports from China to either Argentina or the Latin American region as a whole. If spread over several 

years, these sales would still deliver a significant quantitative jolt to China’s regional defense exports in the near 

term. In addition to these totals, the space facility agreement—not counted as an arms export but with potential 

military uses for both parties—has been reported by Chinese media to constitute a $300 million investment by 

CLTC.50

Qualitative Effects of China’s Pending Arms Sales in the Context of Region-Wide Defense 

Engagement

China’s prospective agreements with Argentina represent several “firsts” in its exports to the region and could 

potentially open doors to further growth. The development of China’s military engagement with Latin America can 

be divided into three broad “phases,” the third represented by these new potential contracts. 

First Phase

The first phase, lasting approximately from the early-1990s to mid-2000s, saw the beginning of relatively low-level 

military sales and exchanges between China and Latin America; prior to this time there are few examples of any 

transactions at all. * Following the pattern of its commercial engagement, China began by selling relatively 

inexpensive low-end military goods such as clothing and personal equipment,51 then moved into offering more 

sophisticated items, culminating in sales of Y-12 light transport aircraft to Peru, surface-to-air missiles (SAMs) and 

towed guns to Bolivia, and SAMs and anti-tank missiles to Ecuador during this period.52 Overall sales remained 

low, as seen above in Figure 2, but other significant exchanges, including port visits by Chinese ships and officer 

exchanges with Chile, commenced during this period.53

Second Phase

The second phase, running roughly from the mid-2000s to the present, saw annual sales grow to a height of nearly 

$100 million in 2010,54 accompanied by rapid advancement in other forms of engagement. Most significantly, these 

transactions involved higher-level goods such as L-15 trainer aircraft (Venezuela), K-8 trainer aircraft (Bolivia, 

Ecuador, Venezuela), Y-8 transport aircraft (Venezuela), air search radar (Ecuador, Venezuela), APCs (Argentina, 

Venezuela), infantry fighting vehicles (Venezuela), and short-range air-to-air missiles (Venezuela).55 An increase 

in donations of defense goods, most notably to Peru and Columbia, occurred during this time period as well.56

Here political alignments provided a valuable entry point for Chinese arms sales. Purchases have correlated with 

the “anti-U.S. foreign policy orientation of the purchasers” to a notable degree, according to National Defense 

University research professor R. Evan Ellis, with these buyers’ political orientation and inability to acquire Western 

military technology driving their initial interest in Chinese imports.57 Countries of the “ALBA” alignment,†and 

Venezuela in particular, have been responsible for the lion’s share of Chinese arms imports, as shown in Figure 2.‡

Contracts with these buyers enabled China and its defense companies to demonstrate reliability and move up the 

 

* The publicly reported exceptions are exports of towed multiple rocket launchers to Nicaragua in 1985 and small arms to Bolivia 

beginning in 1987. Stockholm International Peace Research Institute, “The SIPRI Arms Transfers Database.”

http://www.sipri.org/databases/armstransfers; R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,”

William J. Perry Center for Hemispheric Defense Studies, Perry Paper Series No. 1, 2013, 102.

† ALBA, or the “Bolivarian Alliance for the Peoples of Our America,” is an intergovernmental organization initiated by Venezuela and 

Cuba in 2004 to provide alternatives to U.S.-supported political and economic initiatives in the region. It now has 11 member states: 

Antigua and Barbuda, Bolivia, Cuba, Dominica, Ecuador, Grenada, Nicaragua, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the 

Grenadines, and Venezuela. Of these, Bolivia, Cuba, Ecuador, Nicaragua, and Venezuela have purchased arms from China. Stockholm 

International Peace Research Institute, “The SIPRI Arms Transfers Database.” http://www.sipri.org/databases/armstransfers; BBC 

News, “Colombia Detains Cuba-Bound Chinese Ship Carrying Arms,” March 4, 2015. http://www.bbc.com/news/world-latin-america31723157. Luisa Parraguez, Francisco Garcia Gonzalez, and Joskua Tadeo, “Latin America: Anti-US in Words, Not Deeds,” 

YaleGlobal, October 1, 2013. http://yaleglobal.yale.edu/content/latin-america-anti-us-words-not-deeds; Bolivarian Alliance for the 

Peoples of Our America People’s Trade Treaty, Member Countries, 2010. http://alba-tcp.org/en/albatcp.

‡ Not shown is Cuba, which has no registered imports from China in SIPRI’s Arms Transfers Database, but was revealed in March 2015 to 

have some level of military trade with China when Colombian officials intercepted a Chinese vessel carrying undeclared munitions 

bound for Cuba, a situation described by China’s Foreign Ministry spokesperson as “completely normal military trade cooperation.” 

BBC News, “Colombia Detains Cuba-Bound Chinese Ship Carrying Arms,” March 4, 2015. http://www.bbc.com/news/world-latinamerica-31723157. 
U.S.-China Economic and Security Review Commission 8 

value-added chain, with Venezuela’s K-8 aircraft purchase in 2008 (delivered in 2010) a particularly important 

breakthrough into the aviation market.58

Military engagement expanded in other ways during this period as well. Meetings between senior military officials 

from China and Latin America increased, allowing leaders to build familiarity and explore possibilities for future 

projects.59 The list of these exchanges prominently features ALBA nations, but high-level meetings also occurred 

with counterparts from Brazil, Mexico, Suriname, and Chile over this time period.60 Most notably, November 2012 

marked the first “China-Latin America High-Level Forum on Defense,” in which senior defense officials from 

Bolivia, Cuba, Colombia, Ecuador, Paraguay, and Uruguay met in Beijing with Chinese counterparts, including 

China’s Minister of Defense;61 a second forum was held in 2014.62 This phase saw lower-level interactions increase 

as well, comprising education and training exchanges, multilateral conferences and forums, and humanitarian 

missions; the last included China’s role in the UN peacekeeping mission in Haiti from 2004-2012, a bilateral 

humanitarian exercise with Peru in 2010, and the deployment of China’s “Peace Ark” hospital ship to the region in 

2011.63 Finally, a small PLA Navy flotilla participated in joint military exercises—China’s first in the region—with 

the Chilean and Brazilian navies in 2013.64

A Potential Third Phase

A third phase, launched by these pending agreements, may come to characterize China-Latin America military 

relations in the future. China’s prospective contracts with Argentina establish several new benchmarks for regional 

arms exports: direct toe-to-toe competition with European and Russian suppliers; expansion outside the ALBA 

market; coproduction agreements for advanced end products; sales of high-end goods including fourth-generation 

fighters;

*

sales to all military branches, including a regional navy for the first time; and strategic space cooperation 

involving satellite control and imagery. 

As foreign military sales additionally provide the opportunity to build credibility and demonstrate equipment before

a wider audience,65 the fulfillment of these deals may open doors for Chinese arms suppliers to reach the rest of the 

“mainstream” Latin American market as well. Past engagements evidence this trend—Venezuela was China’s initial 

gateway for arms sales to ALBA,66 and success with ALBA customers likely helped pave the way for these potential 

sales to Argentina.67,† This phase, if achieved, would thus see China’s arms sales continue to increase in volume, 

breadth, and sophistication, leveraging its key breakthrough transactions with Argentina.

68 Coproduction and 

regional marketing of FC-1 fighters or VN1 APCs with Argentina would be of particular interest to comparable 

buyers. Senior military exchanges, such as the Argentine delegation’s February 2015 visit to Beijing in which 

military officials accompanied the president and helped formulate these agreements, would continue and expand as 

well.

Implications for the United States

China’s extensive pending agreements with Argentina and their potential to usher in a new phase in China-Latin 

America defense cooperation present several implications for stated U.S. objectives in the region. The Obama 

Administration has emphasized four “pillars” in U.S. policy toward Latin America: “Promoting economic and social 

opportunity, ensuring citizen security, strengthening effective institutions of democratic governance, and securing 

a clean energy future.”69 Underlying this framework, according to the U.S. Department of State, is the United States’ 

“interest in contributing to the building of stable, prosperous, and democratic nations” in the region.70 Other official 

U.S. declarations have emphasized the end of the “era of the Monroe Doctrine” and a new focus on equal 

partnership, aimed at furthering mutual interests in fostering prosperity, security, democracy, and development.71

Given these objectives, four likely effects of China’s rising presence in the region are of interest. 

 

* The L-15, a trainer with the “features of a third-generation fighter jet” rather than a fighter, has been the most advanced aircraft sold to the 

region during the “second phase.” Both the FC-1 and J-10 are significantly more sophisticated. Third-generation classification based on 

Aviation Industry Corporation of China, “L15 Advanced Trainer,” 2015. 

http://www.avic.com/en/forbusiness/militaryaviationanddefense/trainers/394356.shtml. 

†

In one example, Argentina’s interest in Chinese-made VN1 APCs reportedly stemmed in part from the Venezuelan Navy’s satisfaction 

with the vehicles. R. Evan Ellis (Professor, Latin American Studies, U.S. Army War College Strategic Studies Institute), interview with 

Commission staff, August 17, 2015. 
U.S.-China Economic and Security Review Commission 9 

Continued Constriction of U.S. Military Sales

A first area of impact is the potential for China’s arms sales to contribute to a reduction in U.S. regional market 

share, particularly if China’s breakthrough agreements with Argentina realize their potential as a “beachhead” for 

high-level sales to the rest of the region.

72 Evidence shows that a constriction, while probable, would likely derive 

from multiple sources in addition to China and have only a limited effect on U.S. arms suppliers.

Future prospects for U.S. arms sales to the region are affected by four factors, informed by the broader context 

illustrated in Figure 3: Latin American arms imports have expanded over the past decade, but U.S. sales have not 

kept pace and have even declined in recent years. First, as the chart demonstrates, there are already multiple external 

players in the region—both Russian and European exports have surpassed those of the United States over the past 

decade. Like China, the majority of Russia’s military sales to Latin America—roughly 80 percent since 2006—

have gone to Venezuela.

73 European countries such as France, Germany, Italy, Spain, and the United Kingdom have 

sold to customers more similar to those of the United States, and directly competed in at least one important instance: 

Brazil’s selection of Saab’s* Gripen NG fighter aircraft over Dassault’s Rafale and Boeing’s F/A-18E/F in early 

2015 for a contract potentially worth $4.6 billion.74 U.S. arms suppliers will thus continue to have at least near-peer 

competitors to consider in the future, regardless of the impact of increased Chinese imports. Second, while China’s 

share of military exports to the region as of 2014 was relatively low and has competed more directly with Russian 

exports,75 Chinese suppliers will likely begin to compete more with their U.S. counterparts if a “third phase” in its 

regional defense engagement is realized; importantly, Argentina is already considering some Chinese platforms in 

competition with European designs. Third, U.S. exports could face competition from emerging or aspiring Latin 

American arms suppliers—as noted previously, Brazil aims to begin exporting arms to its neighbors, 76 and 

Argentina has expressed interest in coproducing fighter aircraft and APCs. Finally, some experts assess that the 

United States has shifted its focus away from producing midrange-quality platforms of interest to many Latin 

American countries, noting that its last regional F-16 sale was to Chile in 2003,

77 a problem worsened by this 

increasingly crowded field of competitors. These factors will likely place continued pressure on the United States’ 

share of the regional defense market going forward.

 

* Sweden’s regional exports have been negligible and are thus not included in Figure 3; Saab’s contract with Brazil will change this in the 

future. Stockholm International Peace Research Institute, “The SIPRI Arms Transfers Database.” 

http://www.sipri.org/databases/armstransfers.

0

500

1000

1500

2000

2500

United States Europe (France, Germany, UK, Italy, Spain) Russia China Total Imports

Figure 3: Value of Latin American Arms Imports, by Exporting Country, 1991-2014

Annual (US$ millions, constant 1990 prices)

Source: Stockholm International Peace Research Institute, “The SIPRI Arms Transfers Database.”

http://www.sipri.org/databases/armstransfers. 
U.S.-China Economic and Security Review Commission 10 

Importantly, this constriction will likely have only a minimal impact on U.S. suppliers’ bottom lines, based on three 

considerations. First, over the past decade Latin America has accounted for only 3 percent of U.S. military exports 

by value and has not averaged over 5 percent in a decade since the 1970s.78 Second, only a small share of most 

Latin American defense budgets is assigned to procurement of foreign arms; the bulk goes toward operations, 

personnel, and upkeep costs.

79 Finally, defense industry-wide surveys of leading executives by both IHS Jane’s and 

McKinsey in 2014 found pluralities in agreement that Latin American defense spending would see no change in the 

coming years, while fewer respondents predicted a continued slight increase.

80 Thus while some experts warn that 

a regional “arms race” may be brewing,81 or that perceptions of increasing external dangers may override budgetary 

concerns,82 more assess that spending will decelerate. The prominent regional spenders behind Latin America’s 

recent growth in military outlays as shown in Figure 4—Argentina, Brazil, Chile, Columbia, Mexico, and 

Venezuela—each face near-term budget deficits,

83 and will likely find continued defense budget increases to be 

untenable. Thus while U.S. military suppliers can expect their sales to Latin America to constrict, they are unlikely 

to miss out on a continued boom in the region’s military purchases. 

Potential Creation of a Security Hazard 

A second impact of an expansion in China-Latin America defense cooperation could be the creation of a security 

“hazard”—referring to a source of risk in a harmless state and not in any sense a military threat*—in the region for 

the United States. China has rapidly developed ties with Latin America across “diplomatic, economic, cultural, and 

military” dimensions, as George Washington University professor and Brookings Institution senior fellow David 

Shambaugh writes.

84 Furthermore, China clearly takes a strategic approach to these engagements: a 2008 official 

white paper titled “China’s Policy Paper on Latin America and the Caribbean” states that China views its relations 

with the region “from a strategic plane” and aims at a “comprehensive and cooperative partnership” across all 

sectors. 85 New requirements in China’s 2015 defense white paper specifically assign the PLA to “actively 

 

* Definitions of concepts such as “hazard” and “threat” differ widely among official and academic sources. This analysis utilizes a 

construct that defines “hazard” as referring to an actor or agent in a harmless state, and “threat” as referring to that actor or agent in a 

harmful state, with both “hazard” and “threat” representing sources of risk. This best captures the idea, present in many definitions, of a 

“hazard” as an “inactivated” source of risk; “intent” and “capability” are required to turn it into a “threat.” Bruce Newsome, A Practical 

Introduction to Security and Risk Management, SAGE Publications, 2014, 51–57. 

Figure 4: Military Spending by Country, 1991-2013

Annual (US$ billions, constant 2011 prices and exchange rates)

Source: Stockholm International Peace Research Institute, “The SIPRI Arms Transfers Database.” 

http://www.sipri.org/databases/armstransfers.

0

10

20

30

40

50

60

70

80

90

Latin America

(total)

Brazil

Colombia

Mexico

Chile

Argentina

Venezuela
U.S.-China Economic and Security Review Commission 11 

participate in both regional and international security cooperation and effectively secure China’s overseas interests”

and “actively participate in the country’s economic and social construction,” among other roles,86 underscoring the 

overlap between dimensions in China’s approach. 

China’s “comprehensive strategic partnership” with Argentina and its relations with the region have been 

characterized by this multifaceted approach. At the February 2015 China-Argentina summit, for example, top 

leaders and multi-agency representatives discussed issues spanning multiple dimensions, just one of which was 

defense cooperation.87 More broadly, China has become the region’s largest trading partner while launching an 

impressive array of investment projects, financing arrangements, and political engagements88—many with ALBA 

governments largely disassociated from Western institutions89—to go along with comparatively modest military 

sales. Through its private or state-owned firms, China is currently behind numerous regional infrastructure projects,

including alternative routes to the Panama Canal,

90,*

and has become a major player in the telecom markets of 

virtually every country in the region.91 One leading Chinese scholar has even advocated for Latin America’s 

inclusion in China’s “21st Century Maritime Silk Road” initiative.

92,†

In the financial realm, China has kept 

Argentina afloat through its travails with international creditors via a currency swap arrangement since July 2014,

93

and is providing critical stability to the politically embattled governments of Venezuela and Ecuador with funding 

and investment aid.94 In other dimensions, China has engaged in satellite programs with Brazil, Bolivia, Nicaragua,

and Venezuela,95 and held the first China-CELAC (Community of Latin American and Caribbean States) Forum 

ministerial meeting in January 2015.

96

The comprehensive and ostensibly strategic nature of China’s approach, involving a region in close proximity to 

the United States, requires the United States to carefully consider what security concerns may be involved. Some 

analysts have pointed out that in the long term China’s broad-based efforts could provide it with opportunities to 

deter the United States by holding it at risk in its own theater, or that China could at some point leverage its 

integration with the region for security objectives—drawing on individual nations’ economic dependence on China;

thriving military-military relationships; familiarity with Chinese-built canals, ports, and railways; or access to the 

regional telecom infrastructure, largely built by Chinese firms.

97

 

The totality of available evidence, however, supports the view that at this time China sees its defense engagement 

as complementary to its diplomatic and economic efforts, but not as its primary emphasis or as a means to military

ends. As Dr. Ellis states, “nothing in the public discourse of the Chinese leadership, policy papers, or debates 

suggests that Latin America is considered in the short term as a base for military operations.”98 A security motivation 

is not evident in China’s stated intentions, which are empty of references to military interests in the region as 

described above; its activities, in which it has taken special care to avoid antagonizing the United States by not 

establishing a military presence‡ or drawing too close to unfavorable regimes;99 or its interests, as the much larger 

economic component of its balanced approach would be upended by such actions. Indeed, many experts see 

economic rather than security interests as the dominant motivation behind China’s approach to its relations with 

Latin America.

100 Seen through this lens, China’s defense contracts and engagements are most likely aimed at 

securing stable long-term political relationships—and, in turn, access to key regional resources—in line with its 

economic motivations. The concerns that do arise are best seen as incidental hazards, only threatening in the unlikely 

event of a serious conflict between China and the United States. 

 

* These include three railway projects crossing Brazil and Peru, Columbia, and Honduras, respectively, as well as a canal crossing 

Nicaragua, although the status of these projects is uncertain. A Chinese state-owned firm has also submitted a bid for the next expansion 

phase of the Panama Canal itself.

† China’s 21st Century Maritime Silk Road initiative, first announced by President Xi in October 2013, represents an effort to expand 

international maritime transportation infrastructure and thereby bolster economic cooperation, in the spirit of the historic Silk Road. 

U.S.-China Economic and Security Review Commission, Chinese Media Digest Vol. 2, No. 4, March 27, 2015, 1. 

http://origin.www.uscc.gov/sites/default/files/Research/CMD_Vol%202_No%204_3%2027%2015_final.pdf. 

‡ Only two candidates for such a presence exist: military police from the PLA did participate in the United Nations peacekeeping force in 

Haiti from 2004 to 2012, but this participation was temporary and under a multinational framework. Some analysts suggest China may 

have access to Soviet-built military intelligence communications facilities in Cuba, but this has not been confirmed. R. Evan Ellis, “The 

Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric Defense Studies, Perry 

Paper Series No. 1, 2013, 106; David Shambaugh, China Goes Global: The Partial Power, Oxford University Press, 2013, 116. 
U.S.-China Economic and Security Review Commission 12 

Indirect Impacts to Stability and Governance

While presenting no direct security threats in the region at this time, China’s broadening defense engagement in

Latin America could raise two indirect impacts to U.S. regional interests:

 Direct or indirect recipients of Chinese arms who are otherwise largely isolated for political reasons, such 

as the governments of Cuba and Venezuela or the FARC rebels in Colombia,

* might use them in ways 

unfavorable to U.S. interests. Venezuela has at times supplied the FARC, for example, and reportedly 

facilitated its indirect purchase of Chinese arms on one occasion.101 At the region-wide level, the degree to 

which Chinese state-owned arms suppliers such as Norinco take steps to ensure their weapons are not 

diverted to the black market is not clear.

102 China’s government has denied that such diversions occur, citing 

a series of regulations promulgated from 1996-2002 prohibiting such sales.

103 However, through means 

described by China’s government as legitimate, Chinese-made arms have found their way to rebels in 

Colombia and South Sudan since this time104 and were interdicted on their way to Cuba as recently as March 

2015,

105 undermining these assurances. 

 As growing economic relations with China have signaled to Latin American governments that economic 

development can be achieved without adhering to Western proscriptions,106 states may also look to military 

ties as evidence that a strong defense can be realized apart from sharing U.S. objectives for regional stability 

and good governance. The political stances of several states in the region have been demonstrably altered 

by growing economic ties with China in the past: Costa Rica shifted diplomatic recognition from Taiwan 

to China in exchange for China’s purchase of $300 million in Costa Rican bonds in 2007;

107 Argentina has 

refused to negotiate with Western creditors in part due to alternative loans from China; and otherwise 

isolated governments such as those of Bolivia, Ecuador, and Venezuela have received sorely needed cash 

from China and been able to sustain their anti-Western orientation.108 Expanding defense connections—in 

cases where they provide regional leaders with training, equipment, and financing options beyond what is 

otherwise available—could have similar effects.

Temporary Intensification of Falklands Dispute

The United States takes no position on the Falkland Islands dispute other than to encourage a diplomatic resolution 

of differences,109 but its interests would be ill-served by increased tensions between the claimants—both U.S. 

allies†—and the strain this would place on its regional partnership efforts and on general regional stability.‡ China’s 

potential arms sales and space cooperation agreements with Argentina have already served to marginally intensify 

the dispute, and China publicly supports Argentina’s claim to the islands, likely viewing it as analogous to its own 

claim over Taiwan.110 

If fulfilled, these sales would likely lead to heightened levels of diplomatic tension between Argentina and the 

United Kingdom in the near term. Before its official agreements with China came to light, Argentina’s mere interest 

in Russian Su-24 fighter-bombers prompted the United Kingdom to undertake an official review of the islands’ 

 

* According to the U.S. National Counterterrorism Center, the Revolutionary Armed Forces of Columbia (FARC) is “Latin America’s 

oldest, largest, most capable, and best-equipped insurgency of Marxist origin.” The group employs “bombings, murder, mortar attacks, 

kidnapping, extortion, and hijacking, as well as guerrilla and conventional military action against Colombian political, military, and 

economic targets.” FARC is also heavily involved in drug trafficking and considers U.S. persons to be legitimate military targets due to 

the United States’ support for Colombia’s democratic government. The U.S. Department of State designated FARC as a terrorist 

organization in 1997. National Counterterrorism Center, Revolutionary Armed Forces of Columbia (FARC).

http://www.nctc.gov/site/groups/farc.html; U.S. Department of State, Rewards for Justice – Reward Offer for Information on FARC 

Kidnapping of U.S. Citizen, July 25, 2014. http://www.state.gov/r/pa/prs/ps/2014/07/229796.htm. 

† The United Kingdom is a member of the North Atlantic Treaty Organization (NATO), while Argentina has been designated as a “major 

non-NATO ally” of the United States. United Kingdom Foreign and Commonwealth Office, “United Kingdom Joint Delegation to 

NATO.” https://www.gov.uk/government/world/organisations/uk-joint-delegation-to-nato; Peter Baker, “Obama Upgrades Tunisia’s 

Status as a U.S. Ally,” New York Times, May 21, 2015. http://www.nytimes.com/2015/05/22/us/tunisia-to-become-major-non-nato-allyobama-says.html. 

‡ For context, Latin American countries generally—and those in Mercosur (Argentina, Brazil, Paraguay and Uruguay, with associate 

members Bolivia, Chile, Colombia, Ecuador, Venezuela and Peru) in particular—support Argentina’s claim in the sovereignty dispute. 

Vaughne Miller, Argentina and the Falkland Islands, House of Commons Library Standard Note IA/5602, January 27, 2012, 12. 
U.S.-China Economic and Security Review Commission 13 

defenses and invest in small improvements, a move Argentina strongly criticized.111,* The United Kingdom also 

angered Argentina by blocking its purchase of the Swedish-made Gripen fighter, which contains U.K.-supplied 

components.112 Actual purchases of Chinese platforms would thus likely spark further cycles of concern and 

criticism. 

These tensions are unlikely to persist in the long term, however, let alone lead to an outright conflict or eventual 

transfer of the islands’ sovereignty. Despite the potential billion-dollar value of these agreements, they would not 

provide nearly enough assets to tilt the military balance of power in Argentina’s favor.113,† Argentina’s prospects 

for affording a further buildup are dim, as budget constraints would force it to finance this fighter purchase through 

borrowing, and the country faces long-term debt repayment challenges. 

Conclusion

China’s recent agreements with Argentina will prospectively feature the purchase or coproduction of fighter aircraft, 

APCs, and naval vessels; enhanced military-to-military exchanges; and the implementation of a space tracking 

facility tied to satellite imagery sharing. Together, these agreements would represent a new phase in China-Latin 

America military engagement if accomplished. China would for the first time in this region achieve coproduction 

agreements and sales of fourth-generation fighter aircraft, reach a non-ALBA market, compete quantitatively and 

qualitatively with top international sellers, sell to a naval armed service, and engage in strategic cooperation

involving satellite imagery. These developments would mark an expansion of China’s broader defense engagement

with Latin America that would carry several implications for the United States. First, U.S. arms suppliers would 

likely see continued market share reduction, though this would be of minimal impact as less than 3 percent of U.S. 

arms exports go to Latin America and regional defense spending will likely plateau. Second, the United States may 

face a new regional security hazard, albeit harmless in the absence of an external conflict. Third, regional actors 

might use Chinese arms in ways unfavorable to U.S. interests or perceive their security options to have expanded. 

Finally, the Falkland Islands dispute might briefly and temporarily intensify, complicating U.S. diplomacy in the 

region and with the United Kingdom. Despite the rapid growth and proximity of China’s defense engagements, 

however, they present no direct security threat to the United States, and China’s statements, interests, and actions 

can be monitored to ensure regional hazards remain inactive going forward. 

 

* While Argentina has declared its intention to recover the islands peacefully, its current government has ensured the issue maintains high 

public awareness through a series of rather tangential actions: giving its new corvette class the “Malvinas” name, placing the message

“Las Malvinas son Argentinas” (“The Falklands are Argentina”) on all public transport, and even making the islands the subject of 

Argentina’s 50-peso note, all since November 2014. Ministry of Foreign Relations and Worship of the Republic of Argentina, The 

Question of the Malvinas Islands. https://www.mrecic.gov.ar/es/la-cuestion-de-las-islas-malvinas. Staff translation; Richard D. Fisher 

Jr., “China, Argentina Set for Defense Collaboration, Malvinas-Class OPV Deal,” IHS Jane’s Defense Weekly, February 1, 2015. 

http://www.janes.com/article/48512/china-argentina-set-for-defence-collaboration-malvinas-class-opv-deal; Harriet Alexander, 

“Argentina Rules All Public Transport Must State: ‘The Falklands Are Argentina,’” Telegraph, November 20, 2014. 

http://www.telegraph.co.uk/news/worldnews/southamerica/argentina/11243227/Argentina-rules-all-public-transport-must-state-TheFalklands-are-Argentina.html; and BBC News, “Argentina Launches Falklands Currency Note to Mark Anniversary,” April 3, 2014. 

http://www.bbc.com/news/world-latin-america-26860278. 

† One Chinese aviation expert, recommending Argentina purchase the J-10 rather than the FC-1, did emphasize the ability of the J-10 to 

alter the military balance, but described two additional developments that would be required. First, assuming Argentina purchased the J10B variant, it would need to add flight-refueling aircraft to allow the fighters to cover the roughly 500-kilometer distance to the 

Falkland Islands. Second, it would need to purchase enough aircraft after the initial order to eventually make additional British 

deployments cost-prohibitive. Neither of these steps are present in the current proposed deal. Zhang Tao, “Expert: J-10 More Suitable for 

Argentina,” China Military Online, February 11, 2015. http://english.chinamil.com.cn/news-channels/china-military-news/2015-

02/11/content_6351096.htm. 
U.S.-China Economic and Security Review Commission 14 

Endnotes

1 Richard D. Fisher Jr., “Analysis: China Looks to Break into Latin American Market via Argentina,” IHS Jane’s Defense Weekly, 

February 10, 2015. http://www.janes.com/article/48872/analysis-china-looks-to-break-into-latin-american-market-via-argentina;

Gareth Jennings, “Argentina and China Agree Fighter Aircraft Working Group,” IHS Jane’s Defense Weekly, February 5, 2015.

http://www.janes.com/article/48726/argentina-and-china-agree-fighter-aircraft-working-group.

2 Richard D. Fisher Jr., “Analysis: China Looks to Break into Latin American Market via Argentina,” IHS Jane’s Defense Weekly, 

February 10, 2015. http://www.janes.com/article/48872/analysis-china-looks-to-break-into-latin-american-market-via-argentina;

Gareth Jennings, “Argentina and China Agree Fighter Aircraft Working Group,” IHS Jane’s Defense Weekly, February 5, 2015.

http://www.janes.com/article/48726/argentina-and-china-agree-fighter-aircraft-working-group. 

3 Embassy of the People’s Republic of China in the United States of America, Xi Jinping Holds Talks with President Cristina Fernandez de 

Kirchner of Argentina, Agreeing to Deepen Comprehensive Strategic Partnership, February 2, 2015. http://www.chinaembassy.org/eng/zgyw/t1234980.htm;

Ministry of Foreign Relations and Worship of the Republic of Argentina, Timerman Chaired the First Meeting of the Bilateral 

Commission with China, Feburary 4, 2015. Staff translation. https://www.mrecic.gov.ar/timerman-presidio-la-primera-reunion-de-lacomision-binacional-con-china.

4 Gareth Jennings, “Argentina and China Agree Fighter Aircraft Working Group,” IHS Jane’s Defense Weekly, February 5, 2015.

http://www.janes.com/article/48726/argentina-and-china-agree-fighter-aircraft-working-group. 

5 Gareth Jennings, “Argentina and China Agree Fighter Aircraft Working Group,” IHS Jane’s Defense Weekly, February 5, 2015.

http://www.janes.com/article/48726/argentina-and-china-agree-fighter-aircraft-working-group;

Bloomberg Business, “Company Overview of Chengdu Aircraft Industrial (Group) Co., Ltd.,” April 17, 2015.

http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapid=10698509. 

6 U.S. Department of Defense, Annual Report to Congress on Military and Security Developments Involving the People’s Republic of 

China 2014, April 24, 2014, 51. http://www.defense.gov/pubs/2014_DoD_China_Report.pdf. 

7 Richard D. Fisher Jr., “Paris Air Show 2015: JF-17 Fighter Flying with Indigenous Chinese Turbofan,” IHS Jane’s Defense Weekly, June 

17, 2015. http://www.janes.com/article/52308/paris-air-show-2015-jf-17-fighter-flying-with-indigenous-chinese-turbofan; 

Richard D. Fisher Jr., “Analysis: China Looks to Break into Latin American Market via Argentina,” IHS Jane’s Defense Weekly, 

February 10, 2015. http://www.janes.com/article/48872/analysis-china-looks-to-break-into-latin-american-market-via-argentina; and

Richard D. Fisher Jr., “China, Argentina Set for Defense Collaboration, Malvinas-Class OPV Deal,” IHS Jane’s Defense Weekly,

February 1, 2015. http://www.janes.com/article/48512/china-argentina-set-for-defence-collaboration-malvinas-class-opv-deal. 

8 Richard Bitzinger (Senior Fellow, Military Transformations Program, Nanyang Technological University, Singapore), interview with 

Commission staff, April 16, 2015. 

9 U.S. Department of Defense, Annual Report to Congress on Military and Security Developments Involving the People’s Republic of 

China 2014, April 24, 2014, 33. http://www.defense.gov/pubs/2014_DoD_China_Report.pdf;

U.S.-China Economic and Security Review Commission, 2014 Report to Congress, November 2014, 309-310. 

http://origin.www.uscc.gov/sites/default/files/annual_reports/Complete%20Report.PDF. 

10 Zhao Lei, “J-10 Fighter Jet ‘Good Choice for Argentina,’” China Daily (English edition), May 18, 2015. 

http://usa.chinadaily.com.cn/2015-05/18/content_20750586.htm;

Zhang Tao, “Expert: J-10 More Suitable for Argentina,” China Military Online, February 11, 2015. http://english.chinamil.com.cn/newschannels/china-military-news/2015-02/11/content_6351096.htm; 

Andrew Tate, “China’s J-10 Advocated as Argentine ‘Typhoon Beater,’” IHS Jane’s 360, February 15, 2015. 

http://www.janes.com/article/49002/china-s-j-10-advocated-as-argentine-typhoon-beater.

11 Guido Braslavsky, “Argentina Assesses Purchase of Military Aircraft from China,” Clarin, February 15, 2015. Staff translation. 

http://www.clarin.com/politica/Argentina-evalua-comprar-aviones-militares-chinos_0_1312668796.html. 

12 Zhao Lei, “J-10 Fighter Jet ‘Good Choice for Argentina,’” China Daily, May 18, 2015. http://usa.chinadaily.com.cn/2015-

05/18/content_20750586.htm;

Richard D. Fisher Jr., “Paris Air Show 2015: JF-17 Fighter Flying with Indigenous Chinese Turbofan,” IHS Jane’s Defense Weekly, June 

17, 2015. http://www.janes.com/article/52308/paris-air-show-2015-jf-17-fighter-flying-with-indigenous-chinese-turbofan.

13 Associated Press, “Argentine Destroyer That Led War against Britain Sinks, a Symbol of Decay for Once-Proud Navy,” January 23, 

2013. http://www.foxnews.com/world/2013/01/23/argentine-destroyer-that-led-war-against-britain-sinks-symbol-decay-for-once/; 

MercoPress, “Argentine Navy Short on Spares and Resources for Training and Maintenance,” November 22, 2012. 

http://en.mercopress.com/2012/11/22/argentine-navy-short-on-spares-and-resources-for-training-and-maintenance. 

14 Richard D. Fisher Jr., “Analysis: China Looks to Break into Latin American Market via Argentina,” IHS Jane’s Defense Weekly, 

February 10, 2015. http://www.janes.com/article/48872/analysis-china-looks-to-break-into-latin-american-market-via-argentina; 

Richard D. Fisher Jr., “China, Argentina Set for Defense Collaboration, Malvinas-Class OPV Deal,” IHS Jane’s Defense Weekly,

February 1, 2015. http://www.janes.com/article/48512/china-argentina-set-for-defence-collaboration-malvinas-class-opv-deal. 

15 Richard D. Fisher Jr., “China, Argentina Set for Defense Collaboration, Malvinas-Class OPV Deal,” IHS Jane’s Defense Weekly,

February 1, 2015. http://www.janes.com/article/48512/china-argentina-set-for-defence-collaboration-malvinas-class-opv-deal. 

16 Richard D. Fisher Jr., “China, Argentina Set for Defense Collaboration, Malvinas-Class OPV Deal,” IHS Jane’s Defense Weekly,

February 1, 2015. http://www.janes.com/article/48512/china-argentina-set-for-defence-collaboration-malvinas-class-opv-deal. 

17 Richard D. Fisher Jr., “China, Argentina Set for Defense Collaboration, Malvinas-Class OPV Deal,” IHS Jane’s Defense Weekly,

February 1, 2015. http://www.janes.com/article/48512/china-argentina-set-for-defence-collaboration-malvinas-class-opv-deal. 

 
U.S.-China Economic and Security Review Commission 15 

 

18 Richard D. Fisher Jr., “Analysis: China Looks to Break into Latin American Market via Argentina,” IHS Jane’s Defense Weekly, 

February 10, 2015. http://www.janes.com/article/48872/analysis-china-looks-to-break-into-latin-american-market-via-argentina. 

19 MercoPress, “Brazil Signs Contract for the Purchase of Wheeled Armor Personnel Carriers,” August 11, 2012.

http://en.mercopress.com/2012/08/11/brazil-signs-contract-for-the-purchase-of-wheeled-armour-personnel-carriers.

20 Richard D. Fisher Jr., “Analysis: China Looks to Break into Latin American Market via Argentina,” IHS Jane’s Defense Weekly, 

February 10, 2015. http://www.janes.com/article/48872/analysis-china-looks-to-break-into-latin-american-market-via-argentina. 

21 Richard D. Fisher Jr., “Analysis: China Looks to Break into Latin American Market via Argentina,” IHS Jane’s Defense Weekly, 

February 10, 2015. http://www.janes.com/article/48872/analysis-china-looks-to-break-into-latin-american-market-via-argentina. 

22 Richard D. Fisher Jr., “Analysis: China Looks to Break into Latin American Market via Argentina,” IHS Jane’s Defense Weekly, 

February 10, 2015. http://www.janes.com/article/48872/analysis-china-looks-to-break-into-latin-american-market-via-argentina. 

23 Nuclear Threat Initiative, “China Satellite Launch and Tracking Control General (CLTC).” http://www.nti.org/facilities/124/. 

24 Kevin Pollpeter (Deputy Director, Study of Innovation and Technology in China Project, University of California Institute on Global 

Conflict and Cooperation), interview with Commission staff, March 9, 2014. 

25 Uki Goñi, “Argentinian Congress Approves Deal with China on Satellite Space Station,” Guardian, February 26, 2015. 

http://www.theguardian.com/world/2015/feb/26/argentina-congress-china-satellite-space-station. 

26 Richard D. Fisher, Jr. (Senior Fellow, Asian Military Affairs, International Assessment and Strategy Center), interview with Commission 

staff, March 16, 2015;

Kevin Pollpeter (Deputy Director, Study of Innovation and Technology in China Project, University of California Institute on Global 

Conflict and Cooperation), interview with Commission staff, March 9, 2014.

27 Ministry of Foreign Relations and Worship of the Republic of Argentina, Timerman Chaired the First Meeting of the Bilateral 

Commission with China, Feburary 4, 2015. Staff translation. https://www.mrecic.gov.ar/timerman-presidio-la-primera-reunion-de-lacomision-binacional-con-china;

Embassy of the People’s Republic of China in the United States of America, Xi Jinping Holds Talks with President Cristina Fernandez 

de Kirchner of Argentina, Agreeing to Deepen Comprehensive Strategic Partnership, February 2, 2015. http://www.chinaembassy.org/eng/zgyw/t1234980.htm.

28 Yang Yao, “China to Build Two Nuclear Power Plants in Argentina,” China Daily (English edition), February 9, 2015. 

http://usa.chinadaily.com.cn/world/2015-02/09/content_19524269.htm. 

29 Thierry Ogier, “China’s Argentina Focus Divides LatAm,” Emerging Markets, March 27, 2015. 

http://www.emergingmarkets.org/Article/3439905/Chinas-Argentina-focus-divides-LatAm.html. 

30 Zhao Lei, “J-10 Fighter Jet ‘Good Choice for Argentina,’” China Daily (English edition), May 18, 2015. 

http://usa.chinadaily.com.cn/2015-05/18/content_20750586.htm;

Richard D. Fisher, Jr., “Argentine Air Force Delegation ‘to Visit China for Fast Jet Talks,’” IHS Jane’s Defense Weekly, March 18, 

2015. http://www.janes.com/article/50037/argentine-air-force-delegation-to-visit-china-for-fast-jet-talks. 

31 Jose Higuera, “Argentina Eyes Second-Hand Kfirs to Replace Mirages,” Defense News, July 25, 2015. 

http://www.defensenews.com/story/defense/air-space/strike/2015/07/25/argentina-eyes-second-hand-kfirs-replace-mirages/30247999/. 

32 Richard D. Fisher, Jr. (Senior Fellow, Asian Military Affairs, International Assessment and Strategy Center), interview with Commission 

staff, August 25, 2015. 

33 Richard D. Fisher Jr., “China, Argentina Set for Defense Collaboration, Malvinas-Class OPV Deal,” IHS Jane’s Defense Weekly,

February 1, 2015. http://www.janes.com/article/48512/china-argentina-set-for-defence-collaboration-malvinas-class-opv-deal; 

R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric 

Defense Studies, Perry Paper Series No. 1, 2013, 98, 103-104.

34 Alexandra Stevenson and Irene Caselli, “Argentina Is in Default, and Also Maybe in Denial,” New York Times, July 31, 2014. 

http://dealbook.nytimes.com/2014/07/31/argentina-is-in-default-and-also-maybe-in-denial/;

Charlie Devereux, “Argentina Posts Biggest Annual Current Account Gap since 2000,” Bloomberg News, March 21, 2014. 

http://www.bloomberg.com/news/articles/2014-03-21/argentina-posts-biggest-annual-current-account-gap-since-2000.

35 Richard D. Fisher Jr., “Analysis: China Looks to Break into Latin American Market via Argentina,” IHS Jane’s Defense Weekly, 

February 10, 2015. http://www.janes.com/article/48872/analysis-china-looks-to-break-into-latin-american-market-via-argentina. 

36 Margaret Myers (Director, China and Latin America Program, Inter-American Dialogue), interview with Commission staff, April 9, 

2015. 

37 MercoPress, “Macri Ahead of Scioli, with 8.8% Still Undecided Shows First Poll Following Sunday's Vote,” October 29, 2015. 

http://en.mercopress.com/2015/10/29/macri-ahead-of-scioli-with-8.8-still-undecided-shows-first-poll-following-sunday-s-vote; 

Evan Ellis, “Should the U.S. Be Worried about Chinese Arms Sales in the Region?” Latin America Goes Global, May 11, 2015. 

http://latinamericagoesglobal.org/2015/05/should-u-s-be-worried-about-chinese-arms-sales-in-the-region/; 

Stratfor, “Argentina Prepares for a New Phase, Again,” March 12, 2015. https://www.stratfor.com/analysis/argentina-prepares-newphase-again; 

R. Evan Ellis (Professor, Latin American Studies, U.S. Army War College Strategic Studies Institute), interview with Commission staff, 

April 6, 2015. 

38 Guillermo Háskel, “Dealing with China: The Cultural Factor,” Buenos Aires Herald, April 13, 2015. 

http://www.buenosairesherald.com/article/186587/dealing-with-china-the-cultural-factor. 

39 R. Evan Ellis (Professor, Latin American Studies, U.S. Army War College Strategic Studies Institute), interview with Commission staff, 

April 6, 2015. 

40 Emma Glez and Xin Dingding, “Argentina Approves Satellite Station,” China Daily (English edition), February 27, 2015. 

http://usa.chinadaily.com.cn/epaper/2015-02/27/content_19671489.htm; 
U.S.-China Economic and Security Review Commission 16 

 

Uki Goñi, “Argentinian Congress Approves Deal with China on Satellite Space Station,” Guardian, February 26, 2015. 

http://www.theguardian.com/world/2015/feb/26/argentina-congress-china-satellite-space-station. 

41 $30 million per FC-1 reported by IHS Jane’s, “CAC FC-1 Xiaolong,” in All the World’s Aircraft, February 3, 2015, 4;

$28 million probable cost per J-10 reported, although likely for older J-10A rather than current J-10B. Gabe Collins and Andrew 

Erickson, “China’s Defense Spending Dilemma,” China Real Time (Wall Street Journal blog), March 5, 2012. 

http://blogs.wsj.com/chinarealtime/2012/03/05/chinas-defense-spending-dilemma/; 

$27.84 million per J-10 reported, again likely for older J-10A rather than current J-10B. Lucy Hornby, “China Air Force Woos Allies 

with J-10 Fighter Jet,” Reuters, April 13, 2010. http://in.reuters.com/article/2010/04/13/idINIndia47657420100413?pageNumber=1&virtualBrandChannel=0; and 

$30–40 million unit cost estimated for FC-1, and $50 million for J-10, including entire package of supporting materials in either case. 

Richard D. Fisher, Jr. (Senior Fellow, Asian Military Affairs, International Assessment and Strategy Center), interview with 

Commission staff, March 16, 2015.

42 $42 million was the price per corvette in the previous sale to Nigeria; $50 million per ship was reported for this agreement according to 

Argentine source quoted in Richard D. Fisher Jr., “China, Argentina Set for Defense Collaboration, Malvinas-Class OPV Deal,” IHS 

Jane’s Defense Weekly, February 1, 2015. http://www.janes.com/article/48512/china-argentina-set-for-defence-collaboration-malvinasclass-opv-deal; 

$45 million per corvette reported in Defenseworld.net, “Argentina to Buy Chinese APC, Warships,” February 3, 2015. 

http://www.defenseworld.net/news/12075/Argentina_To_Buy_Chinese_APC__Warships#.VPdDBvnF8RA. 

43 Emma Glez and Xin Dingding, “Argentina Approves Satellite Station,” China Daily (English edition), February 27, 2015. 

http://usa.chinadaily.com.cn/epaper/2015-02/27/content_19671489.htm. 

44 Uki Goñi, “Argentinian Congress Approves Deal with China on Satellite Space Station,” Guardian, February 26, 2015. 

http://www.theguardian.com/world/2015/feb/26/argentina-congress-china-satellite-space-station. 

45 R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric 

Defense Studies, Perry Paper Series No. 1, 2013, 98, 103–104.

46 Stockholm International Peace Research Institute, “The SIPRI Arms Transfers Database.” 

http://www.sipri.org/databases/armstransfers.

47 $30 million per FC-1 reported by IHS Jane’s, “CAC FC-1 Xiaolong,” in All the World’s Aircraft, February 3, 2015, 4;

$28 million probable cost per J-10 reported, although likely for older J-10A rather than current J-10B. Gabe Collins and Andrew 

Erickson, “China’s Defense Spending Dilemma,” China Real Time (Wall Street Journal blog), March 5, 2012. 

http://blogs.wsj.com/chinarealtime/2012/03/05/chinas-defense-spending-dilemma/; 

$27.84 million per J-10 reported, again likely for older J-10A rather than current J-10B. Lucy Hornby, “China Air Force Woos Allies 

with J-10 Fighter Jet,” Reuters, April 13, 2010. http://in.reuters.com/article/2010/04/13/idINIndia47657420100413?pageNumber=1&virtualBrandChannel=0; and 

$30–40 million unit cost estimated for FC-1, and $50 million for J-10, including entire package of supporting materials in either case. 

Richard D. Fisher, Jr. (Senior Fellow, Asian Military Affairs, International Assessment and Strategy Center), interview with 

Commission staff, March 16, 2015.

48 $42 million was the price per corvette in the previous sale to Nigeria; $50 million per ship was reported for this agreement according to 

Argentine source quoted in Richard D. Fisher Jr., “China, Argentina Set for Defense Collaboration, Malvinas-Class OPV Deal,” IHS 

Jane’s Defense Weekly, February 1, 2015. http://www.janes.com/article/48512/china-argentina-set-for-defence-collaboration-malvinasclass-opv-deal; 

$45 million per corvette reported in Defenseworld.net, “Argentina to Buy Chinese APC, Warships,” February 3, 2015. 

http://www.defenseworld.net/news/12075/Argentina_To_Buy_Chinese_APC__Warships#.VPdDBvnF8RA. 

49 Stockholm International Peace Research Institute, “The SIPRI Arms Transfers Database.” http://www.sipri.org/databases/armstransfers.

50 Emma Glez and Xin Dingding, “Argentina Approves Satellite Station,” China Daily (English edition). February 27, 2015, 

http://usa.chinadaily.com.cn/epaper/2015-02/27/content_19671489.htm. 

51 R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric 

Defense Studies, Perry Paper Series No. 1, 2013, 98. 

52 Stockholm International Peace Research Institute, “The SIPRI Arms Transfers Database.” http://www.sipri.org/databases/armstransfers.

53 R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric 

Defense Studies, Perry Paper Series No. 1, 2013, 94, 96.

54 Stockholm International Peace Research Institute, “The SIPRI Arms Transfers Database.” http://www.sipri.org/databases/armstransfers.

55 Stockholm International Peace Research Institute, “The SIPRI Arms Transfers Database.” http://www.sipri.org/databases/armstransfers.

56 R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric 

Defense Studies, Perry Paper Series No. 1, 2013, 97–98.

57 R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric 

Defense Studies, Perry Paper Series No. 1, 2013, 98.

58 R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric 

Defense Studies, Perry Paper Series No. 1, 2013, 98.

59 R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric 

Defense Studies, Perry Paper Series No. 1, 2013, 90–91.

60 R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric 

Defense Studies, Perry Paper Series No. 1, 2013, 91–92.

61 R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric 

Defense Studies, Perry Paper Series No. 1, 2013, 92.
U.S.-China Economic and Security Review Commission 17 

 

62 Yao Jianing, “Wang Guanzhong Attends Opening Ceremony of 2nd China-Latin America High-Level Defense Forum,” China Military 

Online, July 22, 2014. http://eng.chinamil.com.cn/news-channels/china-military-news/2014-07/22/content_6058546.htm.

63 R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric 

Defense Studies, Perry Paper Series No. 1, 2013, 93–97.

64 R. Evan Ellis (Professor, Latin American Studies, U.S. Army War College Strategic Studies Institute), interview with Commission staff, 

August 17, 2015; 

China Daily (English edition), “China-Brazil Relationship,” May 18, 2015. http://usa.chinadaily.com.cn/epaper/2015-

05/18/content_20747916.htm;

Ministry of Foreign Affairs of the People’s Republic of China, China and Chile, 2014. 

http://www.fmprc.gov.cn/mfa_eng/wjb_663304/zzjg_663340/ldmzs_664952/gjlb_664956/3478_665028/. 

65 Wendell Minnick, “Argentina, China Could Jointly Develop Fighters,” Defense News, February 22, 2015. 

http://www.defensenews.com/story/defense/air-space/strike/2015/02/22/argentina-china-could-jointly-develop-fighters/23602417/;

Zhang Tao, “Expert: J-10 More Suitable for Argentina,” China Military Online, February 11, 2015. http://english.chinamil.com.cn/newschannels/china-military-news/2015-02/11/content_6351096.htm; and

R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric 

Defense Studies, Perry Paper Series No. 1, 2013, 108.

66 R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric 

Defense Studies, Perry Paper Series No. 1, 2013, 98–99, 101.

67 R. Evan Ellis (Professor, Latin American Studies, U.S. Army War College Strategic Studies Institute), interview with Commission staff, 

April 6, 2015;

R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric 

Defense Studies, Perry Paper Series No. 1, 2013, 108. 

68 Wendell Minnick, “Argentina, China Could Jointly Develop Fighters,” Defense News, February 22, 2015. 

http://www.defensenews.com/story/defense/air-space/strike/2015/02/22/argentina-china-could-jointly-develop-fighters/23602417/;

R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric 

Defense Studies, Perry Paper Series No. 1, 2013, 108.

69 Mark P. Sullivan, “Latin America and the Caribbean: Key Issues for the 113th Congress,” Congressional Research Service, August 29, 

2014, 1. http://fas.org/sgp/crs/row/R42956.pdf. 

70 Mark P. Sullivan, “Latin America and the Caribbean: Key Issues for the 113th Congress,” Congressional Research Service, August 29, 

2014, 1. http://fas.org/sgp/crs/row/R42956.pdf.

71 Mark P. Sullivan, “Latin America and the Caribbean: Key Issues for the 113th Congress,” Congressional Research Service, August 29, 

2014, 1–2. http://fas.org/sgp/crs/row/R42956.pdf.

72 Richard D. Fisher Jr., “Analysis: China Looks to Break into Latin American Market via Argentina,” IHS Jane’s Defense Weekly, 

February 10, 2015. http://www.janes.com/article/48872/analysis-china-looks-to-break-into-latin-american-market-via-argentina.

73Stockholm International Peace Research Institute, “The SIPRI Arms Transfers Database.” http://www.sipri.org/databases/armstransfers.

74 Defenseworld.net, “Brazilian 36 Gripen NG Fighter Contract Finalized for $4.55 Billion,” March 12, 2015.

https://www.defenseworld.net/news/12402/Brazilian_36_Gripen_NG_Fighter_Contract_Finalized_For__4_55_Billion#.VQruso7F8RA;

Robert Wall, “Typhoon Fighter Jet Is Set for Weapons Upgrade: Mideast Unrest Highlights Need for Advanced Air-to-Ground Weapons 

Capabilities,” Wall Street Journal, February 22, 2015. http://www.wsj.com/articles/typhoon-fighter-jet-set-for-weapons-upgrade1424605101.

75 R. Evan Ellis (Professor, Latin American Studies, U.S. Army War College Strategic Studies Institute), interview with Commission staff, 

August 17, 2015.

76 Sneha Raghavan, Luke Heselden, and Guy Ben-Ari, “No. 31: Latin American Defense Spending Trends (02/11/2013),” Center for 

Strategic and International Studies, February 11, 2013. 

http://csis.org/files/publication/130211_latinamericandefensespendingtrends_0.pdf. 

77 R. Evan Ellis (Professor, Latin American Studies, U.S. Army War College Strategic Studies Institute), interview with Commission staff, 

April 6, 2015;

Richard D. Fisher, Jr. (Senior Fellow, Asian Military Affairs, International Assessment and Strategy Center), interview with 

Commission staff, March 16, 2015; and

Stockholm International Peace Research Institute, “The SIPRI Arms Transfers Database.” http://www.sipri.org/databases/armstransfers. 

78 Stockholm International Peace Research Institute, “The SIPRI Arms Transfers Database.” http://www.sipri.org/databases/armstransfers. 

79 Sneha Raghavan, Luke Heselden, and Guy Ben-Ari, “No. 31: Latin American Defense Spending Trends (02/11/2013),” Center for 

Strategic and International Studies, February 11, 2013, 2. 

http://csis.org/files/publication/130211_latinamericandefensespendingtrends_0.pdf; and

Jon Brandt et al., “Chinese Engagement in Latin America and the Caribbean: Implications for U.S. Foreign Policy,” American University 

School of International Service, Report Prepared for the U.S.-China Economic and Security Review Commission, December 2012, 14. 

https://www.american.edu/sis/usfp/upload/Chinese-Engagement-in-LAC-AU_US-Congress-FINAL.pdf. 

80 John Dowdy and Elizabeth Oaks, “Defense Outlook 2017: A Global Survey of Defense-Industry Executives,” McKinsey, April 2015. 

http://www.mckinsey.com/insights/advanced_industries/defense_outlook_2017_a_global_survey_of_defense-industry_executives; Guy 

Anderson, Stephen Andrews, and Marcia Clough, “IHS Jane's World Defence Industry Survey 2014,” IHS Jane’s Defense Weekly, July 

9, 2014, 8.

81 Richard D. Fisher, Jr. (Senior Fellow, Asian Military Affairs, International Assessment and Strategy Center), interview with Commission 

staff, March 16, 2015.
U.S.-China Economic and Security Review Commission 18 

 

82 R. Evan Ellis (Professor, Latin American Studies, U.S. Army War College Strategic Studies Institute), interview with Commission staff, 

April 6, 2015. 

83 Colombia faces an oil price squeeze, according to Sara Schaefer Munoz, “Colombia Unlikely to Cut Defense Budget if FARC Deal Is 

Reached, Officials Say,” Wall Street Journal, January 20, 2015. http://www.wsj.com/articles/colombia-unlikely-to-cut-defense-budget-iffarc-deal-is-reached-officials-say-1421792084;

Colombia faces a budget deficit, according to Felipe Angel, “Colombia's Twin Deficits,” Huffington Post, December 15, 2015. 

http://www.huffingtonpost.com/felipe-angel/colombia-twin-deficits_b_6308310.html; 

Venezuela is running massive deficits, with an enormous inflation rate, according to Matt O’Brien, “Venezuela Should Be Rich, but its

Government Has Destroyed its Economy,” Washington Post, January 21, 2015. 

http://www.washingtonpost.com/blogs/wonkblog/wp/2015/01/21/venezuela-should-be-rich-but-its-government-has-destroyed-itseconomy/;

Venezuela has cut military spending in 2015, according to Lucas Koerner, “Venezuela Tops Latin America in Military Spending Cuts, 

Slashes Arms Budget by 34%,” Venezuelaanalysis.com, April 16, 2015. http://venezuelanalysis.com/news/11343; 

Brazil has announced a primary budget deficit in 2015 and faces austerity measures according to Samantha Pearson, “Brazil Deficit 

Adds to Rousseff’s Woes,” Financial Times, January 30, 2015. http://www.ft.com/intl/cms/s/0/de4972b6-a8bb-11e4-97b7-

00144feab7de.html#axzz3XrLxb3ng; 

Chile saw its budget deficit widen in 2014, and may need to tap into its emergency sovereign wealth fund, according to Reuters, “Chile 

Posts Wider Fiscal Deficit as Copper Income Falls,” January 30, 2015. http://www.reuters.com/article/2015/01/30/chile-budgetidUSL1N0V91FF20150130; and 

Mexico expects to run a deficit in 2015, according to Anthony Harrup, “Mexico Projects 2015 Fiscal Deficit of 3.5% of GDP,” Wall 

Street Journal, September 5, 2014. http://www.wsj.com/articles/mexico-projects-2015-fiscal-deficit-of-3-5-of-gdp-1409973181. 

84 David Shambaugh, China Goes Global: The Partial Power, Oxford University Press, 2013, 111. 

85 Central People’s Government of the People’s Republic of China, China's Policy Paper on Latin America and the Caribbean (full text),

November 5, 2008. http://www.gov.cn/english/official/2008-11/05/content_1140347.htm. 

86 Caitlin Campbell, “Highlights from China’s New Defense White Paper, ‘China’s Military Strategy,’” U.S.-China Economic and Security 

Review Commission, June 1, 2015. 

http://origin.www.uscc.gov/sites/default/files/Research/Issue%20Brief_Highlights%20from%20Chinas%20New%20Defense%20White%

20Paper_Campbell_6.1.15.pdf. 

87 Ministry of Foreign Relations and Worship of the Republic of Argentina, Timerman Chaired the First Meeting of the Bilateral 

Commission with China, February 4, 2015. Staff translation. https://www.mrecic.gov.ar/timerman-presidio-la-primera-reunion-de-lacomision-binacional-con-china; 

Embassy of the People’s Republic of China in the United States of America, Xi Jinping Holds Talks with President Cristina Fernandez 

de Kirchner of Argentina, Agreeing to Deepen Comprehensive Strategic Partnership, February 2, 2015. http://www.chinaembassy.org/eng/zgyw/t1234980.htm.

88 Kevin Gallagher (Co-Director, Global Economic Governance Initiative, Boston University), interview with Commission staff, February 

10, 2015.

89 R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric 

Defense Studies, Perry Paper Series No. 1, 2013, 1; 

Jon Brandt et al., “Chinese Engagement in Latin America and the Caribbean: Implications for US Foreign Policy,” American University 

School of International Service, Report Prepared for the U.S.-China Economic and Security Review Commission, December 2012, 19.

https://www.american.edu/sis/usfp/upload/Chinese-Engagement-in-LAC-AU_US-Congress-FINAL.pdf. 

90 Simon Romero, “China’s Ambitious Rail Projects Crash into Harsh Realities in Latin America,” New York Times, October 3, 2015. 

http://www.nytimes.com/2015/10/04/world/americas/chinas-ambitious-rail-projects-crash-into-harsh-realities-in-latin-america.html. 

Tom Phillips, “Chinese Mogul Behind Nicaragua Canal Lost 85% of His Fortune in Stock Market,” Guardian, October 2, 2015. 

http://www.theguardian.com/world/2015/oct/02/chinese-mogul-behind-nicaragua-canal-lost-85-of-his-fortune-in-stock-market; 

Margaret Myers (Director, China and Latin America Program, Inter-American Dialogue), interview with Commission staff, April 9, 

2015;

Simon Gardner and Elida Moreno, “Panama Canal Sets Sights on New $17 Billion Expansion Project,” Reuters, March 26, 2015. 

http://www.reuters.com/article/2015/03/26/us-panama-canal-idUSKBN0MM24I20150326; 

Zhang Yuchen, “Brazil, Peru and China to Specify Railway Details,” China Daily, February 26, 2015. 

http://usa.chinadaily.com.cn/world/2015-02/16/content_19599496.htm;

Ishaan Tharoor, “Why the Chinese-Backed Nicaragua Canal May Be a Disaster,” Washington Post, December 23, 2014. 

http://www.washingtonpost.com/blogs/worldviews/wp/2014/12/23/why-the-chinese-backed-nicaragua-canal-may-be-a-disaster/. 

91 R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric 

Defense Studies, Perry Paper Series No. 1, 2013, 52.

92 U.S.-China Economic and Security Review Commission, Chinese Media Digest Vol. 2, No. 4, March 27, 2015, 1.

http://origin.www.uscc.gov/sites/default/files/Research/CMD_Vol%202_No%204_3%2027%2015_final.pdf. 

93 Bruce Einhorn, “Why Argentina's President Really Can't Afford to Mock China,” Bloomberg News, February 5, 2015. 

http://www.bloomberg.com/news/articles/2015-02-05/why-argentina-s-fernandez-really-can-t-afford-to-mock-china. 

94 Charlie Devereaux, “Argentina Said to Secure $400 Million More in China FX Swap,” Bloomberg News, January 12, 2015. 

http://www.bloomberg.com/news/articles/2015-01-12/argentina-said-to-secure-400-million-more-in-china-fx-swap; 

Ken Parks, “Argentina Central Bank Borrows $814 Million under China Currency Swap,” Wall Street Journal, October 30, 2014. 

http://www.wsj.com/articles/argentina-central-bank-borrows-814-million-under-china-currency-swap-1414704667. 
U.S.-China Economic and Security Review Commission 19 

 

95 R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric 

Defense Studies, Perry Paper Series No. 1, 2013, 66-68, 70-71.

96 Xinhua (English edition), “First China-CELAC Forum Ministerial Meeting Concludes in Beijing,” January 9, 2015. 

http://news.xinhuanet.com/english/china/2015-01/09/c_133908207.htm. 

97 R. Evan Ellis (Professor, Latin American Studies, U.S. Army War College Strategic Studies Institute), interview with Commission staff, 

April 6, 2015;

Richard D. Fisher, Jr. (Senior Fellow, Asian Military Affairs, International Assessment and Strategy Center), interview with 

Commission staff, March 16, 2015; and

R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric 

Defense Studies, Perry Paper Series No. 1, 2013, 68, 89. 

98 R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric 

Defense Studies, Perry Paper Series No. 1, 2013, 89.

99 David Shambaugh, China Goes Global: The Partial Power, Oxford University Press, 2013, 119

100 Margaret Myers (Director, China and Latin America Program, Inter-American Dialogue), interview with Commission staff, April 9, 

2015;

R. Evan Ellis (Professor, Latin American Studies, U.S. Army War College Strategic Studies Institute), interview with Commission staff, 

April 6, 2015;

Jorge Heine, Beatrice Rangel, Margaret Myers, and Anton Edmunds, “What Is the State of China-Latin America Relations?” Latin 

America Advisor (Inter-American Dialogue), January 8, 2015. http://www.thedialogue.org/resources/what-is-the-state-of-china-latinamerica-relations/; 

Sarah McDowall, “Key Amigos: China’s Strategic Partnership in Latin America,” IHS Jane’s Intelligence Review, September 28, 2014, 

1–2; and

Kamilia Lahrichi, “China’s Growing Military Sway in Latin America,” Asia Sentinel (Hong Kong), August 4, 2014.

http://www.asiasentinel.com/politics/china-military-sway-in-latin-america/. 

101 R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric 

Defense Studies, Perry Paper Series No. 1, 2013, 101.

BBC News, Colombian Farc Rebels’ Links to Venezuela Detailed, May 10, 2011. http://www.bbc.com/news/world-latin-america13343810; and

Simon Romero, “Venezuela Still Aids Colombia Rebels, New Material Shows,” New York Times, August 2, 2009. 

http://www.nytimes.com/2009/08/03/world/americas/03venez.html?_r=0. 

102 R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric 

Defense Studies, Perry Paper Series No. 1, 2013, 125.

103 Embassy of the People’s Republic of China in the United States of America, China Rejects U.S. Accusation of Illegal Arms Trade, July 

27, 2007. http://www.china-embassy.org/eng/zmgx/zmgx/Military%20Relationship/t345502.htm. 

104 Peter Dörrie, “China Is Stealthily Arming Troops in South Sudan,” The Week, March 11, 2015. 

http://theweek.com/articles/543301/china-stealthily-arming-troops-south-sudan; 

R. Evan Ellis, “The Strategic Dimensions of Chinese Engagement with Latin America,” William J. Perry Center for Hemispheric 

Defense Studies, Perry Paper Series No. 1, 2013, 101.

105 David C. Isby, “Chinese Missile Warheads Found on Ship En-Route to Cuba,” IHS Jane’s Missiles and Rockets, March 10, 2015, 1;

BBC News, “Colombia Detains Cuba-Bound Chinese Ship Carrying Arms,” March 4, 2015, http://www.bbc.com/news/world-latinamerica-31723157. 

106 Detlef Nolte, “The Dragon in the Backyard: US Visions of China’s Relations toward Latin America,” GIGA Focus (German Institute of 

Global and Area Studies), Number 5, 2013. http://www.giga-hamburg.de/en/system/files/publications/gf_international_1305.pdf. 

107 Graham Bowley, “Cash Helped China Win Costa Rica’s Recognition,” New York Times, September 12, 2008. 

http://www.nytimes.com/2008/09/13/world/asia/13costa.html. 

108 Jon Brandt et al., “Chinese Engagement in Latin America and the Caribbean: Implications for U.S. Foreign Policy,” American 

University School of International Service, Report Prepared for the U.S.-China Economic and Security Review Commission, December 

2012, 19. https://www.american.edu/sis/usfp/upload/Chinese-Engagement-in-LAC-AU_US-Congress-FINAL.pdf. 

109 U.S. Department of State, U.S. Position on the Falkland (Malvinas) Islands, January 20, 2012. 

http://www.state.gov/r/pa/prs/ps/2012/01/182294.htm. 

110 Richard D. Fisher Jr., “China, Argentina Set for Defense Collaboration, Malvinas-Class OPV Deal,” IHS Jane’s Defense Weekly,

February 1, 2015. http://www.janes.com/article/48512/china-argentina-set-for-defence-collaboration-malvinas-class-opv-deal. 

111 Guardian, Argentinian President Fernández Orders Declassification of Falklands War Files, April 2, 2015. 

http://www.theguardian.com/world/2015/apr/02/argentina-president-falklands-war-documents;

Kylie MacLellan, “Britain Says to Boost Defense of Disputed Falkland Islands,” Reuters, March 24, 2015.

http://www.reuters.com/article/2015/03/24/us-britain-falklands-idUSKBN0MK0RW20150324; and 

Gareth Jennings, “Argentina and China Agree Fighter Aircraft Working Group,” IHS Jane’s Defense Weekly, February 5, 2015.

http://www.janes.com/article/48726/argentina-and-china-agree-fighter-aircraft-working-group. 

112 Jose Higuera and Usman Ansari, “Argentina's Jet Fighter Replacement Options Narrow,” Defense News, November 30, 2014. 

http://archive.defensenews.com/article/20141130/DEFREG05/311300010/Argentina-s-Jet-Fighter-Replacement-Options-Narrow. 

113 Richard D. Fisher Jr., “Analysis: China Looks to Break into Latin American Market via Argentina,” IHS Jane’s Defense Weekly, 

February 10, 2015. http://www.janes.com/article/48872/analysis-china-looks-to-break-into-latin-american-market-via-argentina.