China secretly agrees to provide Algeria with a 15 MWt research reactor at Ain Oussera. May China and Brazil sign a nuclear cooperation agreement, covering both research and reactor construction. China and Argentina sign nuclear co-operation agreement. Sometime before the completion of this agreement, China transferred uranium and heavy water to Argentina. January China signs a 10-year military technology transfer agreement with Iran.
Agreement heightens U.S. concerns that China is assisting Iranian nuclear programs.
September Following U.N. embargo on Iraq, China is suspected of shipping lithium hydride to the country. The chemical is an ingredient in missile fuel, and also has other weapons uses. April Discovery of Algerian Ain Oussera reactor publicized. U.S. announces that it has discovered the transfer of an M-11 missile from China to Pakistan. Category II sanctions on China and Pakistan for missile technology transfers.