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China supplies Bolivia with military equipment and intelligence satellite.

Chinese military vehicles

The China-Bolivia agreement is one such deal, in which the Chinese have begun supplying Bolivia with military vehicles and spare parts and more, possibly on easy repayment terms, analysts said.

Bolivian President Evo Morales said China would also help Bolivia launch a low-orbit satellite to fight drug cartels.

Bolivia has been struggling with outmoded defense equipment but its deal with China sparked speculation that military modernization signaled border problems with neighboring Paraguay.

Bolivia and Paraguay went to war in the 1930s over rumors of oil deposits in the bordering Gran Chaco region, a find never confirmed with a discovery. In the fighting, the bloodiest in South America in the 20th century, Paraguay captured some Bolivian land, which it continues to hold. READ MORE HERE.

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