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U.S. sales of warplanes, anti-missile systems and other costly weapons to China's and North Korea's neighbors appear set for significant growth amid regional security jitters.
Chinese arms firms offered to sell weapons worth about $200 million to Libyan leader Muammar Gaddafi's beleaguered forces in July, two newspapers reported, compounding pressure on Beijing's brittle ties with the rebels who have ousted him.
China said Saturday it had suspended military exchanges with the United States over Washington's $6.4-billion arms deal with Taiwan, the territory that Beijing claims as its own.