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United States Sanctions Chinese, Other Entities for Allegedly Aiding Iranian Weapons Programs From Monday, January 10, 2005 issue.

United States Sanctions Chinese, Other Entities for Allegedly Aiding Iranian Weapons Programs

By Mike Nartker
Global Security Newswire

WASHINGTON — The United States has imposed sanctions on nine entities for allegedly aiding Iranian WMD and missile programs, the U.S. State Department announced last week (see GSN, Dec. 1, 2004).

The sanctioned entities include six Chinese companies and one Chinese national — Beijing Alite Technologies Co., China Aero-Technology Import Export Corp., China Great Wall Industry Corp., China North Industry Corp., Wha Cheong Tai Co., Zibo Chemet Equipment Corp. and national Q.C. Chen (see GSN, Dec. 9, 2004). The Taiwanese firm Ecoma Enterprise and the North Korean company Paeksan Associated Corp. were also sanctioned.

The entities were sanctioned for violating the Iran Nonproliferation Act of 2000 by allegedly transferring to Iran items controlled by one of several multilateral export-control regimes “or otherwise having the potential to make a material contribution” to WMD programs or ballistic and cruise missile programs. The alleged transfers occurred between 1999 and mid-2004, a U.S. State Department official said today. The official refused to further specify when the alleged transfers occurred or detail what items were involved.

Under the two-year sanctions, which went into effect late last month, the entities are prohibited from entering into contracts with, or receiving aid from, the U.S. government.  In addition, the sanctions prohibit new licenses from being approved, and they suspend existing licenses, for U.S. exports of controlled, high-technology and military items to the entities.

Several of the sanctioned Chinese entities have been punished previously for allegedly aiding Iran, including the China Great Wall Industry Corp., China North Industry Corp. (NORINCO) and Q.C. Chen. The United States has also previously sanctioned North Korean and Taiwanese entities for alleged aid to Tehran’s WMD and missile efforts.

China last week called the latest U.S. sanctions “very irresponsible.”

“We believe such actions by the United States will not help expand Sino-U.S. cooperation on nonproliferation,” a Foreign Ministry official was quoted as saying in a press release.

The ministry said that any cases of alleged proliferation by Chinese entities would be prosecuted according to Chinese law. 

“If they were taking care of the problem, we wouldn’t have to do this,” the State Department official said of the recent round of sanctions.

The State Department also announced last week that sanctions imposed against the Spanish company Telstar had been lifted. The company was sanctioned in September for alleged weapons equipment transfers to Iran (see GSN, Sept. 30, 2004).

The sanctions were lifted after Telstar agreed to no longer do business with Iran, the State Department official said. “It was pretty straightforward to reach,” the official said of the agreement.


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