Chapter Six
92
And Now?
There was a time in which the Heritage Foundation was prepared to
recommend a Free Trade Agreement with Taiwan to the American
Administration, seeing the ROC as a powerful export-oriented economy
and good partner in the rim of the mainland China.^17
Now, in 2013, the same powerful country, the USA, sees in China the
possibility to finance its state debt. The USA, forgetting the love it once
had for the development of Taiwan’s system, passed an FTA with the
People’s Republic of China instead. Pragmatism is the best word for
characterizing both powers.
Observing the following tables, we can see that in 2006 China was a
great importer of weapons, given its large People’s Army, and also began
to export, as we can see. However, the greatest exporters are the United
States and Russia. Nevertheless, predictions look favorably upon China’s
potential to become a major exporter of advanced weaponry systems to
Southeast Asia, with implications for regional security. The market has
been dominated by a handful of western suppliers like the United States,
the United Kingdom, France, and, increasingly, Israel (as well as Russia).
China is indeed part of the group of the five best sellers, considering its
evolution in recent years, and is expanding its market beyond Southeast
Asia and Africa, selling in Latin America (to Venezuela and Bolivia) and
even to Turkey, which is expected to buy a missile defense system,
Chinese HQ9–a deal worth $4 billion dollars.^18 In addition, it is important
to add that, from 1999 to 2004, China was the first nation to benefit from
international payments to cover deals with heavy guns.^19
Figure 6-10: Commerce in Systems of Defense, 2007/2008 (prices 1990)^20
Countries Import Export Total Armed Forces
(Millions dollars) (Millions dollars) (Thousands)
China 3 621 564 2 255
India 1 672 11 1 316
United States 417 7 888 1 506
Russia 4 6 733 1 207(^17) Brooks, The US - Republic of China Trade Relashionship: Time for a New
Strategy.
(^18) Bitzinger, RSIS Publication,November 2014.
(^19) Rolo, O Regresso às Armas, 123.
(^20) PNUD, R. 2007-08.