By Mike Nartker
Global Security Newswire

WASHINGTON — The United States has imposed sanctions against five Chinese entities and one North Korean entity for allegedly transferring items to Iran that could make a “material contribution” to Tehran’s WMD or ballistic missile efforts, according to a notice published today in the Federal Register (see GSN, May 29).

Under the Iran Nonproliferation Act of 2002, the United States has imposed sanctions against the Chinese firms Taian Foreign Trade General Corp., Zibo Chemical Equipment Plant, Liyang Yunlong Chemical Equipment Group Co., China North Industries Corp. (Norinco) and the China Precision Machinery Import/Export Corp.  The United States also imposed sanctions against the North Korean Changgwang Sinyong Corp.  The six entities were sanctioned for activities that occurred in the first half of 2002, a U.S. State Department official told Global Security Newswire today.

The United States had previously imposed sanctions on Norinco in May for allegedly aiding Iran’s ballistic missile program — allegations that the company has denied (see GSN, May 27).  The State Department official said today’s announced sanctions were imposed on Norinco for different activities than those that triggered the previous sanctions.

In March, the Washington Times reported that the United States had decided to impose sanctions on Changgwang Sinyong for its alleged role in the sale of North Korean ballistic missiles to Pakistan (see GSN, March 31).  Last year, the United States sanctioned the North Korean company for the sale of Scud ballistic missile components to Yemen (see GSN, Aug. 23, 2002).

The new U.S. sanctions, which took effect June 26, prohibit U.S government agencies from doing any business with the six firms for the next two years.  In addition, private U.S. firms are barred from selling those companies any items that would normally require export licenses under the Export Administration Act or the Export Administration Regulations.

The sanctions are unlikely to have a substantial economic impact on the six entities, the State Department official said, adding that the sanctions do not prohibit U.S. customers from importing commercial goods from the six.  The sanctions are more likely to provide political leverage, however, because of the “embarrassment” resulting from being identified as a proliferator, the official said.

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