South American countries, wanting to buy Chinese defence equipment are demanding 100% financing which is making it difficult for China based companies to sell in that market.
"Previously, Latin American countries mainly use products made in Europe and America. Chinese products failed to win recognition in the Latin American market, and it's partly due to customers' usage habits. Besides, the overall payment ability of Latin American countries is comparatively weak. Some countries even asked for hundred percent financing, which is difficult for us to handle," Fu Yongcai, the assistant general manager with China Shipbuilding Industry Corporation said.
In addition, Chinese products are also lacking brand recognition in the region.
Over the years, Chinese companies have sold limited quantities of low-technology military goods like uniforms and small arms to the region for some time.
China is looking to promote its military products in Latin American region through Latin American Aerospace and Defense Exhibition taking place in the Brazilian city of Rio de Janeiro, which has been slow over the years due to financing issues.
But Chinese defense contractors are hopeful of changing that with this event. "I think they know little about China. When they talk about military products, the first thing that comes to their mind would be products from Europe and the U.S. They hardly think about China. So we come here together in the name of China Defense to jointly show the defense products made in China. I think it's useful to let more people know our products and make some preparations to compete in the market," Lai Zhiming, a senior consultant for China Poly Group Corporation noted.
Chinese companies are also displaying some of their key products, including new guided weapon systems, long-range air-defense missiles and a series of new-concept weapons.