United States Penalizes Chinese Firm for Exporting Missile Technology

By Mike Nartker
Global Security Newswire

WASHINGTON — The United States has imposed sanctions against a Chinese firm for alleged missile technology sales, according to a notice published today in the Federal Register (see GSN, July 30).

Last month, the United States determined that the state-owned China North Industries Corp. (Norinco) had engaged in missile technology proliferation activities, according to the notice (see GSN, July 3).  Under the sanctions, which take effect today, Norinco will be prohibited from importing items controlled by the Missile Technology Control Regime annex or the Export Administration Act of 1979 and from entering into contracts with Washington relating to such items for two years.  Norinco is also banned from exporting all goods to the United States for two years.

Norinco is no stranger to U.S. sanctions, having been sanctioned twice for alleged missile-related transfers in the last four months.  In July, the company was sanctioned for allegedly transferring items to Iran that could make a “material contribution” to Tehran’s WMD or ballistic missile programs.  In May, the United States sanctioned Norinco for allegedly aiding Iran’s ballistic missile program (see GSN, May 23).  Norinco, however, has denied providing missile assistance to other countries. 

Today’s notice does not identify the alleged recipient of the missile technology transfer that triggered the latest sanctions.

In late July, U.S. Assistant Secretary of State for Verification and Compliance Paula DeSutter called on China to do more to curb ballistic missile exports, calling such exports the “most significant proliferation concern” the United States has with China (see GSN, July 28).  During a hearing of the U.S.-China Economic and Security Review Commission, DeSutter identified Norinco as a “serial proliferator.”

“For some time, we have been alerting the Chinese government to our concerns about the activities of Norinco,” DeSutter said.  “Nonetheless, the Chinese government appears to have taken no action to halt Norinco’s proliferant behavior,” she added.

Today’s announced sanctions would also apply for two years against all other Chinese state-owned entities engaged in activities related to the development of ballistic missiles, electronics, space systems and military aircraft, according to the notice.  The U.S. State Department determined, however, that it is “essential to the national security of the United States” to waive the additional sanctions for one year, the notice says.

“These are the strongest sanctions we’ve ever imposed on China,” the Washington Times today quoted a State Department official as saying.

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