Details in the press are sketchy at best and of course the rumors in Latin American forums are rampant. However, from what I have been told (and this is not reliable since my source has been misinformed in the past); The details for signing the production contract between the firm FC-1/JF-17 Chengdu Aircraft Corporation and Argentina Aircraft Factory (FadeA), still have to be finalized.
Negotiations have stalled, in terms of the constraints regarding "technology transfer"; however, they represent the first formal attempt for the co-production of Chinese advanced military aircraft in Latin America.
A license agreement that China is seeking is in the range of $us600m to $us740m however, the Argentine government is only willing to pay $300m to $us450m. As a side note I find it amusing that with all the equipment that China has copied from other nation, that they would be so concerned about "technology transfer",
While discussions are said to be far from over, if realized they will open up a wide availability of Chinese weapon systems to Argentina that include the 100 km-range Luoyang SD-10A (PL-12) active radar-guided beyond-visual-range (BVR) air-to-air missile (AAM) and the very high speed CASIC CM-400AKG anti-ship missile, which has a range of 180-250 km. Argentina is look at producing between 45 to 60 aircraft.
FAdeA officials are hoping for a potential co-production of the FC-1/JF-17. Nonetheless, the discussions are the first formal effort that could lead to the co-production of a modern Chinese fighter in Latin America. FAdeA officials added that the co-produced FC-1 could be called the 'Pulqui-III', recalling FAdeA's Pulqui-II; Latin America's first swept wing jet fighter, which was designed by Germany's Kurt Tank for the government of Juan Peron.