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China: U.S. Imposes Penalties on Three Chinese Entities By Greg Webb According to a U.S. State Department official, the technology consisted of items controlled by the Australia Group, an international export control regime designed to curb trade in materials that can be used to make chemical and biological weapons. The penalties, triggered by the Iran Nonproliferation Act of 2001, prohibit the Chinese entities during the next two years from purchasing any goods on the U.S. munitions list or any goods regulated by the Export Administration Act. The Chinese firms are Liyang Chemical Equipment and the China Machinery and Electric Equipment Import and Export Company. The individual was identified as Q.C. Chen, and the U.S. announcement provided no affiliation. This was not the first time Chen has been penalized, the State Department official said. Chen and six other Chinese entities were penalized in May 1997 for knowingly contributing to Iran’s chemical weapon program. Those measures remain in effect and prohibit U.S. firms from conducting business with the named people and firms. According to U.S. intelligence assessments, China has had an extensive relationship with Iran, providing it with nuclear, chemical weapon and missile technology. The United States has imposed penalties on Chinese firms several times in response to Chinese exports of such technology.
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