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Chinese Companies Continue to Export Controlled Items, State Department Official Says
Chinese companies continue to export items that could be used by other countries in WMD or missile programs, despite Chinese export controls, a U.S. State Department official said last month (see GSN, March 23). The State Department sanctioned foreign companies 115 times from January 2001 through last month over exports of controlled items; 80 of those sanctions were aimed at Chinese companies, according to the official. “You can see that the great majority of entities we sanction are Chinese entities, and that’s because the great majority of the supply to proliferation programs that we see is from Chinese entities,” he said. Beijing would be “threatened by the destabilization of the world economy” if a war using chemical or biological weapons takes place in the Middle East and disrupts the world’s oil supply, the official said. “It’s in their interest to make sure that Chinese companies are part of the solution rather than part of the problem,” he said. Some Chinese entities sanctioned under U.S. law, such as the state-owned manufacturers China North Industry Corp. and China Great Wall Industry Corp., are repeat offenders, according to the official. About 400 of the nearly 1,000 deemed export license applications filed in the year ending September 2004 were for technology involving work performed by Chinese citizens, the official said. Such continued violations seem to indicate “that our sanctions policy is not working very well,” said Gary Milhollin, director of the Wisconsin Project on Nuclear Arms Control. U.S. sanctions policy should be altered to include penalties for both the subsidiary company and the parent company, and all penalties should be increased, Milhollin said in March 10 testimony before the U.S.-China Economic and Security Review Commission (State Department release, May 2).
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