(I) Since 1988, when China delivered intermediaterange ballistic missiles and missile launchers to Saudi Arabia, there has been genuine concern that China may have been trying to buy into the lucrative Gulf arms market. (II) However, there has been no evidence of further significant arms deals between China and the Gulf since that time. (III) On the other hand, since the 1990s, China has enjoyed a healthy trade in military equipment with Iran. (IV) In 2005 Saudi Arabia supplied China with 17% of its imported oil needs. (V) Obviously, this has caused a great deal of worry in the other Gulf states about the military imbalance that exists between themselves and Iran, an imbalance that China has been instrumental in creating.