Many regional countries have also initiated military reform programs and developing their indigenous defence industrial capabilities. The states of the region are importing more conventional weapons with Iran and now also Armenia and Kazakhstan emerging among the world's leading recipients of major conventional weapons in the second half of the 1990's. While US military aid to the Caspian countries is admittedly small in comparison to its aid to other regions of the world and compared with Russian aid to the Caspian region states, the amount of aid is increasing significantly. Before 1998 there are few recorded arms transfers from the USA and to Caspian region states. Apart from Russia and the USA there has also been a recent increase in China's role in military cooperation with regional states that came as a result of growing political and economic interest of China in the Caspian region, especially in its territories adjacent to Central Asia.
China also cooperates extensively with Iran on military issues.
By 2000 China's share in arms transfers to the region exceeded 5 per cent. Program Co-chair, Carnegie Moscow Centre. Dmitri Trenin, Deputy Director, Carnegie Moscow Centre. USA Dr. Harold Saunders, Director of International Affairs, Kettering Foundation. Dr. Jonathan Elkind, former Director for Russian, Ukrainian and Eurasian Affairs, US National Security Council.