US Nonproliferation Sanctions Against China - Statements and Developments

This chronology includes statements and developments on issues related to U.S. nonproliferation sanctions (nuclear, missile, and chemical) against China, including the investigation of allegations, the imposition and waiving of sanctions, and US and Chinese statements regarding such sanctions.

2004

12/27/04:  The U.S. State Department imposed sanctions on seven Chinese entities, one Taiwanese company, and one North Korean company under Section 3 of the Iran Nonproliferation Act of 2000 for reportedly selling WMD or missile related-technology and equipment to Iran.  According to Public Notice 4946, the seven Chinese entities sanctioned were Beijing Alite Technologies Company Ltd., China Aero-Technology Import Export Corporation (CATIC), China Great Wall Industry Corporation, China North Industries Corporation (NORINCO), Q. C. Chen, Wha Cheong Tai Company, and Zibo Chemet Equipment Corporation Ltd.  China Great Wall was sanctioned three times in June 1991, August 1993 and September 2004.  NORINCO was sanctioned three times in 2003 and two times in 2004.  Q. C. Chen received sanctions in May of 1997, May and June of 2002 and again in November of 2004.  Wha Cheong Tai Company also received sanctions in May and June of 2002 and again in November of 2004.  Both Zibo Chemet Equipment Corporation and CATIC were previously sanctioned in May 2002.
[Department of State, Bureau of Nonproliferation, "Public Notice 4946", Federal Register, 70:1, 1 January 2005, http://wais.access.gpo.gov.]

11/22/04:  The U.S. State Department imposed sanctions on four Chinese entities and one North Korean company under Section 3 of the Iran Nonproliferation Act of 2000 for reportedly selling WMD or missile related-technology and equipment to Iran  According to Public Notice 4914, the four Chinese entities sanctioned were the state-run Liaoning Jiayi Metals and Mineral Co. Ltd., Wha Cheong Tai Co. Ltd., Shanghai Triple International Ltd, and one individual identified as Q. C. Chen.  Both Chen and Wha Cheong Tai Company Ltd. received sanctions in May and July of 2002.  Commenting on the sanctions, State Department spokesperson Adam Ereli stated, “There are unrepentant proliferators out there and it’s going to require a concerted, sustained effort to fight them.”  When questioned about China’s commitment to the prevention of proliferation, he answered, “There's definitely a ways to go.”  In response to the sanctions, Chinese foreign ministry spokesperson Zhang Qiyue stated, “The Chinese government attaches great importance to export control and law enforcement. We're also exerting effort to make sure that all the relevant regulations are implemented in real earnest. . . . If there are certain violations of Chinese companies and individuals, we will punish them according to law. However, in the meantime, we oppose other countries citing their domestic laws to impose sanctions on Chinese companies.”  [Department of State, “Public Notice 4914”, Federal Register, 69:230, 1 December 2004, http://wais.access.gpo.gov;  "Transcript: State Department Noon Briefing,” U.S. State Department, 1 December 2004, http://usinfo.state.gov;  “English Transcript of PRC FM Spokesman News Conference," Ministry of Foreign Affairs of the Peoples Republic of China, 2 December 2004, in FBIS CPP20041203000178.]

09/23/04:  The U.S. State Department imposed sanctions on 14 entities, including seven Chinese firms, under Section 3 of the 2000 Iran Nonproliferation Act for the transfer to Iran of equipment and technology controlled by international export control lists or with the potential to aid in the development and production of missiles and weapons of mass destruction.  The Chinese firms identified under Public Notice 4845 were the Beijing Institute of Aerodynamics, Beijing Institute of Opto-Electronic Technology (BIOET), China Great Wall Industry Corporation, China North Industries Corporation (NORINCO), LIMMT Economic and Trade Company, Ltd, Oriental Scientific Instruments Corporation (OSIC), and South Industries Science and Technology Trading Co., Ltd.  Beijing expressed its disapproval of the U.S. placing sanctions on Chinese corporations  without the prior verification of the Chinese government.  A Chinese government official stressed that the PRC was capable of self-supervision through the Contingency Coordination Mechanism of Non-Proliferation Export Controls, and that measures were being taken to amend export control regulations to further adopt the standards, control lists, and international conventions used by many countries.  “Given such circumstances that the U.S. side took action without evidence or explanation, added to the fact that such action targets primarily large state-owned enterprises [SOEs] in China, we question the real intention behind the US sanctions. . . . Certain existing differences should be appropriately resolved through negotiation and dialogue, instead of imposing sanctions and pressure at every turn.” [Department of State, “Public Notice 4845,” Federal Register 69:188, 29 September 2004, http://wais.access.gpo.gov; “PRC Sets Up Sensitive Items Export Control Mechanism in View of US Sanctions,” Hong Kong Wen Wei Po, 9 October 2004, in FBIS CPP2004100900002.]

09/20/04:  The U.S. State Department imposed sanctions on Xinshidai Company (China New Era Group) under Executive Order 12938 of November 14, 1994, as amended by Executive Order 13094, for providing material assistance to a country for programs capable of delivering weapons of mass destruction.  Under the sanctions, announced in Public Notice 4833, the United States banned imports of Xinshidai goods, contracts with the firm and the giving of any kind of U.S. assistance to the company.  Foreign Ministry Spokesperson Kong Quan responded by saying “The United States often wants to apply its domestic laws to impose sanctions on Chinese companies. We can't agree with this. It is wrong to apply domestic laws in international issues. We demand that the United States cancels this wrong decision.”  [“PRC FM Spokesman Demands US Cancel ‘Wrong’ Sanctions Against China Firm,” Hong Kong AFP, 23 September 2004, in FBIS CPP20040923000162; Department of State, “Public Notice 4833,” Federal Register 69:181, 20 September 2004, http://wais.access.gpo.gov.]

09/18/04: The U.S. State Department announced in Public Notice 4835 that the import sanctions applied to the Chinese government on September 19, 2003 would be continued to be waived for an additional six months.   The sanctions imposed under the Arms Export Control Act had been waived originally for a period of one year as “essential for the national security of the United States,” thus allowing the U.S. to continue missile-technology related imports.  The waiver extension suggested that there was still a contract Washington wished fulfilled before implementing the sanctions.  [“PRC FM Spokesman Demands US Cancel ‘Wrong’ Sanctions Against China Firm,” Hong Kong AFP, 23 September 2004, in FBIS CPP20040923000162; Department of State, “Public Notice 4835,” Federal Register 69:181, 20 September 2004, http://wais.access.gpo.gov.]

04/04/04: The U.S. State Department imposed sanctions on five Chinese companies under the provisions of the Iran Nonproliferation Act of 2000, for the transfer to Iran of equipment and technology controlled by international export control lists or with the potential to aid in the development and production of missiles and weapons of mass destruction.  According to the sanctions announcement, declared under Public Notice 4680, Norinco, China Precision Machinery Import/Export Corporation (CPMIEC), the Beijing Institute of Opto-Electronic Technology (BIOET), Oriental Scientific Instruments Corporation (OSIC), and Zibo Chemical Equipment Plant are among 13 Chinese, Russian, Taiwanese, Macedonian, Belarussian, North Korean and United Arab Emirates companies named in the sanctions announcement.  The sanctions prohibit issuing these companies new export licenses and conducting business with the U.S. government or on U.S. government contracts. [Judith Miller, "Bush Puts Penalties on Nuclear Suppliers," New York Times, 2 April 2004, http://www.nytimes.com; Department of State, "Public Notice 4680," Federal Register 69:67, 7 April 2004, http://wais.access.gpo.gov.]

2003

09/19/03: The U.S. State Department imposed sanctions on China North Industries Corporation (Norinco) for alleged "missile technology proliferation activities." The sanctions, which were declared under Public Notice 4493, banned importing Norinco products into the U.S., issuing it new export licenses, or entering into U.S. Government contracts with the company for a period of two years. In addition, the Notice declared that the sanctions would also apply to any other Chinese state-owned entities engaged in activities related to the "development or production of any missile equipment or technology" or "affecting the development and production of electronics, space systems or equipment, and military aircraft." However, the notice added that the sanction on missile-technology related imports would be waived for a period of one year for reasons "essential to the national security of the United States." The notice did not identify the recipient of the alleged transfer. [Public Notice 4493: Bureau of Nonproliferation; Imposition of Missile Proliferation  Sanctions Against a Chinese Entity, Department of State, 19 September 2003.]

07/24/03: The U.S. government placed sanctions on China Precision Machinery Import/Export Corporation (CPMIEC) for the second time in less than one month.  According to the official sanctions announcement in the Federal Register, these sanctions were placed for alleged missile technology transfers that required "the imposition of measures pursuant to Executive Order 12938 of November 14, 1994, as amended by Executive Order 13094 of July 28, 1998." These sanctions also authorized an importation ban. According to a statement released by AFP, the Foreign Ministry in Beijing denied that any Chinese companies were providing missile technology to other contries. ["China denies local companies shipping missile technology overseas", Agence France-Presse via Spacedaily.com, 31 July 2003, http://www.spacedaily.com/2003/030731100917.pvapqrks.html.]

07/03/03: The U.S. State Department announced its imposition of sanctions against one North Korean and five Chinese companies: Changgwang Sinyong Corporation (North Korea), Taian Foreign Trade General Corporation, Zibo Chemical Equipment Plant, Liyang Yunlong Chemical Equipment Group Company, China North Industries Corporation (NORINCO), and China Precision Machinery Import/Export Corporation (CPMIEC). The measure was taken pursuant to the Iran Nonproliferation Act of 2000, which proscribes the transfer to Iran of technology and equipment controlled under the multilateral export control lists of the Missile Technology Control Regime, Australia Group, Nuclear Suppliers Group, Wassenaar Arrangement, and Chemical Weapons Convention (Schedules I and II). The Act also provides for penalties on entities that transfer to Iran other goods, services, or technology not on these control lists but "which nevertheless would be, if they were United States goods, services, or technology, prohibited for export to Iran because of their potential to make a material contribution to the development of nuclear, biological, or chemical weapons, or of ballistic or cruise missile systems." [Imposition of Nonproliferation Measures Against Chinese and North Korean Entities, Including Ban on U.S. Government Procurement, Public Notice 4392, Federal Register, Department of State, 3 July, 2003.]

05/23/03: The U.S. imposed sanctions on China North Industries Corporation (Norinco) for allegedly supplying missile technology to Iran. The sanctions, which went into effect on 9 May, barred all exports to the U.S. by Norinco or its subsidiaries, and forbade any contracts between the company and U.S. government agencies. The legislative basis for the measure was Executive Order 13094: Proliferation of Weapons of Mass Destruction, 28 July 1998, which authorizes an import ban on any entity that supplies materials that could be used to assist in the development of WMD or missiles capable of delivering them. The move was expected to have more of an impact than previous sanctions; in 2002, Norinco exported an estimated $100 million worth of products to the U.S. [Guy Dinmore, "US Imposes New Sanctions on China," Financial Times, 22 May 2003.]

2002

07/19/02: Effective July 9, 2002 the U.S. State Department will impose economic sanctions (Public Notice 4071) on eight (8) Chinese companies involving "three cases of sales of advanced conventional arms and chemical and biological weapons components to Iran." The following Chinese companies, Chinese individual, and Indian national that were sanctioned are: Jiangsu Yongli Chemicals and Technology Import and Export Corporation (China); Q.C. Chen (China); China Machinery and Equipment Import Export Corporation (China); China National Machinery and Equipment Import Export Corporation (China); CMEC Machinery and Electric Equipment Import and Export Company Ltd. (China); CMEC Machinery and Electrical Import Export Company, Ltd. (China); China Machinery and Electric Equipment Import and Export Company (China); Wha Cheong Tai Company Ltd. (China); China Shipbuilding Trading Company (China); Hans Raj Shiv (India). The sales were made between September 2000 and October 2001 and violated the Iran-Iraq Nonproliferation Act of 1992. The duration of the sanctions is two (2) years. [Bill Gertz, "U.S. Penalizes 8 Chinese Firms," Washington Times, 19 July 2002, pg. 1.]

05/20/02: The Washington Times reported that effective May 9, 2002 the United States  will impose sanctions on eight (8) Chinese companies (Public Notice 4020) and individual for violating conditions of the Iran Nonproliferation Act of 2000. "According to officials...the Chinese sanctions were imposed for sales of cruise missile components to Iran."  The companies listed are: the Liyang Chemical Equipment Company (Liyang Yunlong of China); the Zibo Chemical Equipment Plant (Chemet Global Ltd of China); the China National Machinery and Electric Equipment Import and Export Company; the Wha Cheong Tai Company of China; the China Shipbuilding Trading Company; the China Precision Machinery Import/Export Corporation; the China National Aero-Technology Import and Export Corporation, and Q.C. Chen, a Chinese businessman. [Bill Gertz, Exporting Weapons Draws U.S. Sanction, The Washington Times, 20 May 2002, pg. 1..]

01/24/02: Effective January 16, 2002, the State Department stated (Public Notice 3893) that three (3) Chinese entities have "engaged in activities that require the imposition of measures to Section 3 of the Iran Nonproliferation Act of 2000." These companies are Liyang Chemical Equipment, China Machinery and Electric Equipment and Export Company and Q.C. Chen (China).

2001

09/02/01: In a Washington Post article, a senior US official listed four conditions for the lifting of the missile proliferation sanctions imposed on China. Discussions in Beijing between the State Department and the Chinese Foreign Ministry in August 2001 failed to resolve these issues. The situation subsequently resulted in the imposition of sanctions. The four conditions for the lifting of sanctions are:

1. China must first put a halt to sensitive exports from the China Metallurgical Equipment Corporation.

2. China must also reaffirm its agreement last November with the United States to refrain from helping other countries develop missiles capable of delivering nuclear
weapons.

3. China must drop its argument that missile contracts signed before November are not covered by the accord.

4. As outlined in the November agreement, Beijing must establish a system of export controls to regulate the transfer of sensitive technology in an organized fashion.
[Alan Sipress, U.S. Lists Conditions for Lifting Sanctions, The Washington Post, September 2, 2001.]

09/01/01: The US government imposed economic sanctions on a Chinese company for shipping missile technology to Pakistan in violation of a bilateral agreement in November 2000 in which China pledged to stop such transfer and to promulgate export control laws covering missile technology exports. The US government said that the China Metallurgical Equipment Corporation in late 2000 and early 2001 shipped missile technology to Pakistan that would assist its Shaheen-1 and Shaheen-2 programs. The sanctions, under the 1990 Missile Control Act, ban US companies from doing business with the Chinese entity for two years. The Bush administration has also invoked a ban on new licenses for U.S. companies to put their satellites on Chinese rockets or transfer satellite technology.

The Chinese government vociferously denied violating the November 2000 accord or that a Chinese company had shipped missile goods to Pakistan. The Foreign
Ministry spokesman said:

     Over a period of time, the US has repeatedly alleged that MECC was engaged in missile proliferation activities according to its so-called "intelligence information".   In-depth investigations by the Chinese side indicate that MECC has never engaged in any activities as alleged by the United States and the US allegation is groundless. However, the US side is bent on making the erroneous decision based on its wrong intelligence information, in disregard of the constructive position and the investigation results of the Chinese side. Such a US move is totally groundless and irresponsible, which the      Chinese side can never accept. [PRC FM Spokesman Opposes US Sanctions Against China, Xinhua, September 5, 2001.]

The Foreign Ministry called for the US to immediately lift the sanctions. China threatened repercussions of the sanctions were not lifted. "China strongly urges the US
side to immediately withdraw its wrong decision, so as to avoid any damage to Sino-US cooperation in non-proliferation. Otherwise, the US side should bear all the
responsibilities for the consequences arising therefrom."

06/01: On June 26, 2001, the US government imposed sanctions on the Jiangsu Yongli Chemicals and Technology Import and Export Corporation and its subsidiaries, after the State Department determined that the company had “engaged in activities that require the imposition of measures pursuant to Section 3 of the Iran Nonproliferation Act of 2000.” [“Notices: Bureau of Nonproliferation; Imposition of Nonproliferation Measures Against a Chinese Entity, Including a Ban on US Government Procurements,” Federal Register, Vol. 66, no 123, 26 June 2001.]  A State Department spokesperson indicated that the offending action by the company took place in 2000 and involved "technical assistance controlled under a multilateral regime" (likely, the Australia Group.)  However, the State Department would not specify at this time which international regime was at issue, and details of the transfer were classified.  ["US says China, North Korea firms aid Iran weapons bid," Reuters, 28 June 2001.]

In response to the sanctions, the Chinese Foreign Ministry spokesperson stated that China has administered its exports strictly in accordance with the CWC, and that China has strict regulations on the export of such materials.  She added that:

"We believe that [Jiangsu Yongli Chemicals] has engaged in normal trade in the international chemical industry ... They abide by the purposes and aims of the [Chemical Weapons] Convention ... No country has the right to impose its domestic laws upon international laws.  China strongly opposes the sanction and asks the United States to withdraw it." ["U.S. Sanctions of Chinese Company Unwarranted," Website of the Chinese Embassy, Washington DC, posted 30 June 2001 ]

2000

07/09/00: At the conclusion of recent talks between John Holum, Senior Advisor for Arms Control and International Security, and Chinese officials, Mr. Holum remarked on the purpose of U.S. policy in reference to sanctions.  Mr. Holum said, "[t]he object of our policy...is not sanctions.  The object is solutions." [Henry Chu, "U.S. China Agree on Broad goals but Few Specifics in Arms Control Talks," Los Angeles Times, 9 July 2000.]

06/29/00: The Chinese Foreign Ministry spokesman, Zhu Bangzao remarked before a press conference:

"[A] small number of anti-China congressmen of the United States have obstinately clung to the 'Cold War' mentality and they are filled with bias and hostility toward China.  They have ignored basic facts and China's tremendous efforts to prevent proliferation, wantonly violated the basic principles governing state-to-state relations, and attempted to promote the adoption of the 'China Nonproliferation Law' bill as a law to undermine the improvement and development of Sino-US relations.  Their intention is quite vicious.  We demand the US Senate should not deliberate or put to vote this bill that interferes in China's internal affairs and demand the US government should oppose in a clear-cut manner and immediately take actual action to resolutely stop the adoption of the bill as a law in order to avoid setting up new and serious obstacles to the improvement and development of Sino-US relations." ["PRC Spokesman Expresses 'Strong Opposition' to 'PRC Nonproliferation Law' Bill," Beijing Xinhua Hong Kong Service in Chinese 1059 GMT 29 June 2000, in FBIS CPP20000629000113.]

05/16/00: Chinese Foreign Ministry spokeswoman, Zhang Qiyue in reference to reports that the United States is trying to impose economic sanctions due to allegations that China transferred missile technology to Pakistan, stated:

"China has a very strict policy on preventing proliferation. According to the relevant policy on preventing proliferation, as well as the obligations stipulated by the relevant treaties and nuclear policies, China has always been extremely [shi fen 0577 0433] cautious on the question of missile exports and has also adopted a very [fei chang 7236 1603] responsible attitude." ["Zhang Qique Says China Exercises Effective, Strict Control Over Missile Exports," Beijing Zhongguo Xinwen She in Chinese 1247 GMT 16 May 2000, in FBIS CPP2000051600126]

1997

12/97: Chinese Foreign Ministry spokesman Shen Guofang stated, regarding proposed legislation in the US Congress:
 

"Recently, in disregard of international law and the basic norms governing international relations, the US House of Representatives passed a series of bills with anti-China contents and grossly interfered in China's internal affairs. We hereby express our firm opposition and strong displeasure. It must be pointed out that there are always some people in the US Congress who are uncomfortable about better Sino-US relations and friendlier exchanges between the two peoples. Every time the relationship gets better, they go out of their way to make trouble and create obstacles. Yet history has proved, and will continue to prove the futility of their attempts." ["Foreign Ministry News Briefings," Beijing Review, 1-7 December 1997, p. 9.]

10/14/97: In a speech to the UN First Committee, Chinese Disarmament Ambassador stated: "No country has the right to impose its own domestic laws on the international community, nor should it impose or threaten to impose sanctions at will." [Statement by H.E. Sha Zukang, Ambassador of the People's Republic of China for Disarmament Affairs, at the First Committee of the 52nd Session of the United Nations General Assembly, 14 October 1997.]

09/24/97: In his September 1997 statement to the UN General Assembly, Chinese Foreign Minister Qian Qichen stated:

"In our view, no one should try to monopolize the market under the name of preventing proliferation and to interfere in the economic and technological cooperation of other countries, developing countries in particular. An overhaul of the discriminatory and exclusive non-proliferation regimes and arrangements on the basis of universal participation is thus necessary". [Statement by H.E. Mr. Qian Qichen, Vice Premier and Minister of Foreign Affairs of the People's Republic of China and Head of Delegation of the Chinese Delegation, at the 52nd Session of the General Assembly of the United Nations, 24 September 1997.]

Question: What is the effect of U.S.-imposed sanctions on China's launch industry?

Answer: The different opinions on the launch services price for the Mabuhay satellite should be settled through friendly consultation. Imposing sanctions will hurt not only the feelings of both peoples, in United States and China, but also the amicable cooperative relations between both countries' industrial enterprises. Sanctions imposed by any government are never advantageous to either side. In this case they may have detrimental effects on U.S. satellite manufacturers and telecommunications customers. The previous U.S. sanctions forced China to select a partner in Germany and cooperate with the German and French aerospace industry for the SinoSat program. We hope new sanctions are not needed." ["Newsmaker Forum," Space News, 15-21 September, 1997.]

05/28/97: The China Daily newspaper stated:

"A signatory State to the [Chemical Weapons Convention (CWC)]…China stands firmly behind the ban and ultimate destruction of chemical weapons. It has always opposed the development of chemical weapons by any country, and has not acted to help others to develop them…the US government has increasingly resorted to economic sanctions to punish any country which dares to disobey American norms. This willful practice…has no support in international law." ["CWC Agency Begins Work to Backdrop of Iran-China-US Row," Disarmament Diplomacy, June 1997, p. 49]

05/23/97: Chinese Foreign Ministry spokesman Shen Guofang called the chemical-related sanctions "entirely unreasonable," stating: "China expresses its resolute opposition and requests the United States to immediately rescind [the] sanctions".

05/21/97: The United States imposed sanctions on Chinese entities and persons for chemical weapons-related sales to Iran.

04/10/97: In Congressional testimony, Deputy Assistant Secretary of State Robert Einhorn stated regarding China's sale of C-802 cruise missiles to Iran:

"The Iran-Iraq Arms Nonproliferation Act provides for sanctions against those whose defense cooperation with Iran enables it to acquire "destabilizing numbers and types" of conventional weapons. We have concluded that the C-802 transfers that have occurred so far are not of a destabilizing number and type. However, we are very concerned about these transfers, and will continue to monitor Chinese and Iranian activity for any additional transfers that might cross the threshold of sanctionable activity." [Testimony by Robert J. Einhorn, Deputy Assistant Secretary of State for Nonproliferation, Before the Subcommittee on International Security, Proliferation, and Federal Services, Senate Committee on Governmental Affairs, 10 April 1997.]

11/22/96: US State Department spokesman Nicholas Burns stated that the United States has "not determined" whether China violated nonproliferation laws by selling missile equipment and technology to Iran. Burns said that "There is no question that there is trade between China and Iran, ...but we have not determined that China has violated the current commitments it has made to the United States or to other members of the international community...We are looking at the allegations, as we have done in the past." Burns further stated that "In the absence of any determination that China has violated the law, it is appropriate to go forward" with efforts to improve US-China relations. [Willis Witter, "US: No Proof Of Chinese Violations," Washington Times, 23 November 1996, p. A1]

05/26/96: Liu Hu, Director General of MOFTEC's Science and Technology Department, stated on sanctions:

"The Chinese government always advocates banning and destroying weapons of mass destruction...We are for taking necessary steps, including international supervision of sensitive products and technology, to prevent proliferation of such weapons...We insist that such supervision should be carried out fairly and reasonably...We're against using the tool to harm the development of civil science of countries, especially developing nations, and it should not affect normal international exchange and cooperation." [Jane Macartney, "China Tightens Limits On Sensitive Exports, Dumping," Reuters, 26 May 1996]

05/10/96: US Secretary of State Warren Christopher announced that the United States would not impose imposing sanctions on China or Pakistan for the Chinese transfer of ring magnets to Pakistan. The State Department stated that this decision was due to China's pledge not to provide assistance to unsafeguarded nuclear facilities, its reaffirmation of its nuclear nonproliferation commitments, and its agreement to conduct consultations with the United States on export control and proliferation issues. The State Department also said that there was no evidence that the central Chinese government had "willfully aided or abetted" Pakistan's nuclear weapon program with the ring magnet transfer. [Shirley A. Kan, "Chinese Proliferation of Weapons of Mass Destruction: Current Policy Issues," CRS Issue Brief, Congressional Research Service, The Library of Congress, 17 October 1996, pp. 3, 6]

04/04/96: Chinese Foreign Ministry spokesman Shen Guofang stated that "China is a responsible state...China has never and will never transfer any equipment or technology that could be viable for the production of nuclear weapons." Shen stated that as an NPT signatory, China "strictly abides by its commitments" and "does not advocate, encourage or carry out nuclear proliferation." Shen also stated that "Corporations in China are not eligible to make any kind of transactions that violate China's export policies...Sanctions based on rumors are ill-advised." ["China Denies Nuclear Technology Sale To Pakistan, "United Press International, 4 April 1996; AFP (Hong Kong), 4 April 1996; in "PRC: Spokesman Warns On Imposing Sanctions Over Nuclear Row," FBIS-CHI-96-066, 4 April 1996]

01/22/96: The United States relaxed its export controls on the sale of computers to China. The controls had been relaxed on 9 December 1993 as well. ["The Credibility Of China's Nonproliferation Pledges And United States Sanctions: 1984-1996," compiled by the minority staff, Senate Governmental Affairs Committee, Summer 1996]

1994

11/01/94: The United States waived the 24 August 1993 missile sanctions against China's Ministry of Aerospace Industry (MAI) for national security reasons. US Undersecretary of State Lynn Davis issued a determination which waived the sanctions against Chinese firms. The sanctions against the Pakistani Ministry of Defense, however, remained in place and expired in August 1995. [Dianne E. Rennack, "China: US Economic Sanctions," CRS Report for Congress, Congressional Research Service, The Library of Congress, 1 July 1996, p. 31; "The Credibility Of China's Nonproliferation Pledges And United States Sanctions: 1984-1996," compiled by the minority staff, Senate Governmental Affairs Committee, Summer 1996]

10/04/94: With the signing of the US-China "Joint Statement on Missile Nonproliferation," the United States announced the lifting of the August 1993 sanctions on Chinese entities. Upon signing the statement, US Secretary of State Warren Christopher stated:

"the United States will move to lift the sanctions it imposed against China in August 1993 for transferring missile parts to Pakistan. Once the sanctions are lifted, China has agreed not to export ground-to-ground missiles covered by the MTCR agreement. In effect, this communique today goes beyond the MTCR requirements. It represents a global and verifiable ban on Chinese exports of missiles capable of a range of at least 300 kilometers and a payload of at least 500 kilograms. This is a very important step forward, and I urge you not to let the complexity of it blind you to the achievement that resulted here today. This agreement also resolves a previous difference of opinion between the United States and China on the interpretation of the MTCR. Under the terms of this agreement, China accepts the MTCR definition of a missile's inherent capability. That means that any missile that has the inherent capability to be modified to meet the MTCR thresholds is also under the control of the regime. Both of our countries have reaffirmed our respective commitments to the MTCR guidelines and its parameters. As a second step in this regard, the United States and China also have agreed to hold further in-depth discussions on the MTCR, including discussion of China's possible MTCR membership in the near future." ["The Credibility Of China's Nonproliferation Pledges And United States Sanctions: 1984-1996," compiled by the minority staff, Senate Governmental Affairs Committee, Summer 1996]

01/25/94: Jiu Jiyuan, president of the China Aerospace Corporation (CASC) and administrator of the China National Space Administration (CNSA), stated that US sanctions imposed on China in August 1993 for the alleged November 1992 sale of missile parts to Pakistan are hurting China's space program. According to Jiu, the US sanctions have caused delays in the development of the Dong Fang Hong 3 (DFH-3) satellite, loss of launch sales, and have damaged the reputation of Chinese space organizations. [Andrew Lawler, Space News, 14 February 1994, pp. 1, 25]

01/94: The Clinton administration was set to lift the ban on the sale to China of the Echostar satellite, worth $150 million, and an Asiasat II satellite, worth $55 million. Both satellites are built by Martin Marietta. In exchange, China would agree to begin talks on issues regarding the proliferation of weapons. The US government has been under pressure from US businesses to lift the sanctions that were imposed on China during the summer of 1993 because of China's sale of M-11 missile technology to Pakistan. [Bob Davis and Robert S. Greenberger, Wall Street Journal, 6 January 1994, p. A2]

1993

12/9/93: The US Department of Commerce issued revised Export Administration Regulations, relaxing US export controls on the sale of computers to China. The revised regulations allowed computers to be sold with a data processing speed of up to 67 million theoretical operations per second (MTOPS) without a validated license. The original sanctions restricting computer sales to China were imposed on 27 May 1991. [Dianne E. Rennack, "China: US Economic Sanctions," CRS Report for Congress, Congressional Research Service, The Library of Congress, 1 July 1996, p. 28; "The Credibility Of China's Nonproliferation Pledges And United States Sanctions: 1984-1996," compiled by the minority staff, Senate Governmental Affairs Committee, Summer 1996]

11/18/93: US officials announced the sale of a $10 million Cray Research Inc. supercomputer to China in an effort to improve relations with China, despite evidence that China violated the MTCR by selling M-11 missile components to Pakistan. Cray Research Inc. spokesman Frank Parisi stated that a sophisticated set of safeguards has been established so that there is no way that China can use the supercomputer for "pernicious applications." US officials stated that the approval to sell the supercomputer to China did not conflict with the US sanctions imposed on China in 8/93, which affect only missile-related goods. In return for lifting the sanctions, the Clinton administration wanted China to "make more public and binding assurances" which would include an agreement that the M-11 missile is covered by the MTCR. Although China says that the MTCR does not cover the M-11 because it has only a 280 km range and carries an 800 kg payload, the US says the payload can be reduced giving the missile a greater, MTCR-restricted range. [Gene Gibbons, Reuters, 19 November 1993; Jim Mann, Los Angeles Times, 29 November 1993, pp. A1, A9; Export Control News, 30November 1993; Jon B. Wolfsthal, Arms Control Today, December 1993, p. 18]

10/12/93: The United States offered to ease the sanctions on China if Beijing would renew and strengthen its commitment to the MTCR guidelines. A senior US official stated that China is showing no interest in negotioting an end to the sanctions imposed on it by the United States after China sold M-11 missiles to Pakistan. The official states, "Sanctions are not an end in themselves. They are designed to encourage non-proliferation but (obtaining a waiver) requires serious negotiations by the Chinese and so far they've given no indication that they are willing to do this." [Reuters, 12 October 1993]

08/27/93: In response to US sanctions, China threatened to scrap its promises to abide by the MTCR.

08/26/93: The Chinese Embassy in Washington criticized the US missile sanctions against China as "a wrong judgment based on inaccurate intelligence...China has made clear on many occasions that it has not done anything in violation of its commitment" to the MTCR. Chinese Vice Foreign Minister Liu Huaqiu referred to the sanctions as a "naked hegemonic act" contrary to the "basic norms governing international relations," according to Xinhua. ["The Credibility Of China's Nonproliferation Pledges And United States Sanctions: 1984-1996," compiled by the minority staff, Senate Governmental Affairs Committee, Summer 1996; Jeffrey Smith and Daniel Williams, Washington Post, 11 November 1993, pp. A39, A44]

8/24/93: The United States initiated category 2 trade sanctions against China and Pakistan for the alleged sale of M-11 missile components to Pakistan. US officials refused to clarify whether China was denying that any transfers took place or denying that the transfers violated the MTCR. US Under Secretary of State for International Security Affairs Lynn Davis determined that China's Ministry of Aerospace Industry (MAI) and Pakistan's Ministry of Defense conducted missile proliferation activities. All of the subsidiaries, divisions, subunits, or successors of both Ministries were sanctioned, including eleven Chinese entities and one Pakistani entity. The sanctions denied export licenses for items covered by the MTCR Annex for two years and denied US government contracts related to such items. Further sanctions were imposed on Chinese government organizations involved in the development or production of electronics, space systems or equipment, and military aircraft.

The sanctioned Chinese entities were:
 

-Chinese Ministry of Aerospace Industry (MAI)
-China Precision Machinery Import-Export Corproation (CPMIEC)
-China National Space Administration (CNSA)
-China Aerospace Corporation (CASC)
-China Great Wall Industry Corporation (CGWIC)
-Chinese Academy of Space Technology
-Beijing Wan Yuan Industry Corporation (BWYIC)
-China Haiying Company
-Shanghai Astronautics Industry Bureau
-China Chang Feng Group
 

The Pakistani Ministry of Defense was also sanctioned. [Risk Report, October 1995, p. 8]

Both China and Pakistan denied that the transaction occurred, although Pakistan did admit to purchasing "a few" short-range ballistic missiles from China in the late 1980s. China denied violating the MTCR guidelines, but refused to clarify whether it was denying that any transfers took place or denying that the transfers violated the MTCR.

China called the sanctions "a naked hegemonic act" that "puts Sino-US relations in serious jeopardy." Chinese Vice Foreign Minister Liu Huaqiu, in a protest to US Ambassador to China Stapleton Roy, said that "China has honored its commitments to act in accordance with the MTCR guidelines and parameters and has done nothing in contradiction of that commitment." China also threatened to "reconsider its commitment to MTCR."

Three US satellites scheduled to be launched aboard Chinese launch vehicles were affected: a Hughes-manufactured Optus B3 and APStar 1 to be launched in 1994, and the Martin Marietta Astrospace Asiasat 2 to be launched in 1995.

US State Department spokesman Mike McCurry announced the sanctions on 25 August 1993. The sanctions on Chinese entities were waived on 1 November 1994; the sanctions against the Pakistani Ministry of Defense expired in August 1995. [Dianne E. Rennack, "China: US Economic Sanctions," CRS Report for Congress, Congressional Research Service, The Library of Congress, 1 July 1996, p. 28; Flight International, 1 September 1993, p. 6; Zachary S. Davis, "China's Non-proliferation And Export Control Policies: Boom Or Bust For The NPT Regime?" Asian Survey, June 1995]

1992

12/4/92: The Bush administration reportedly considered the approval of a license for the export of a supercomputer to China, the Cray Y-MP2, a modification of the 27 May 1991 missile-related sanctions on China. The US Department of Defense and Arms Control and Disarmament Agency (ACDA) reportedly opposed the license due to the possible military application of the supercomputer. The Bush administration finally approved the export license. [Dianne E. Rennack, "China: US Economic Sanctions," CRS Report for Congress, Congressional Research Service, The Library of Congress, 1 July 1996, p. 26]

09/11/92: US President George Bush informed Congress of his decision to lift the June 1991 restrictions on exports of satellites and related components to China, and to grant licenses to US manufacturers for export of six communications satellites to be launched on Long March vehicles. The satellites are Apsat, Intelsat, Asiasat, Starsat, Afristar, and Dong Fang Hong 3. The exports would result in $650 million for the US satellite and electronic industries. [Xinhua (Beijing), 12 September 1992; in Proliferation Issues, 12 September 1992, p. 1; William Scally, Reuters, 4 August 1992; in Executive News Service, 4 August 1992; Andrew Lawler, Space News, 21 September 1992, pp. 3, 21]

03/23/92: The Bush administration announced that it would waive the missile-related sanctions on China for national security reasons. The decision was made after the United States received written assurances from the Chinese on 21 February 1992 that it would comply with the MTCR guidelines. [Dianne E. Rennack, "China: US Economic Sanctions," CRS Report for Congress, Congressional Research Service, The Library of Congress, 1 July 1996, p. 23]

03/9/92: A US State Department spokesman stated that the United States planned to lift the missile sanctions on China. He said that "as a result, we expect China to announce its adherence to the guidelines and parameters of the MTCR...This in no way means we will slacken our efforts to monitor either missile transfers worldwide, or Chinese missile and missile technology export practices." ["The Credibility Of China's Nonproliferation Pledges And United States Sanctions: 1984-1996," compiled by the minority staff, Senate Governmental Affairs Committee, Summer 1996]

02/26/92: The United States officially issued the waiver lifting missile-related sanctions on China. ["The Credibility Of China's Nonproliferation Pledges And United States Sanctions: 1984-1996," compiled by the minority staff, Senate Governmental Affairs Committee, Summer 1996]

The official notification of the waiver reads follows:

[Waiver of Missile Technology Proliferation Sanctions on Foreign Persons, 26 February 1992]

02/22/92: The Chinese Foreign Ministry stated that "Upon the effective lifting of the three sanctions by the US government, China will act in accordance with the Existing Missile Technology Control Regime guidelines and parameters in its export of missiles and missile technology." ["The Credibility Of China's Nonproliferation Pledges And United States Sanctions: 1984-1996," compiled by the minority staff, Senate Governmental Affairs Committee, Summer 1996]

02/21/92: The US State Department announced it would lift the missile-related sanctions against Chinese entities. State Department spokesperson Tutwiler stated that the lifting of sanctions "in no way means we will slacken our efforts to monitor either missile transfers worldwide, or Chinese missile and missile technology export practices." Tutwiler said China's commitment was "an important step forward in securing Chinese support for ballistic missile nonproliferation." ["The Credibility Of China's Nonproliferation Pledges And United States Sanctions: 1984-1996," compiled by the minority staff, Senate Governmental Affairs Committee, Summer 1996]

01/31/92: The Bush administration is willing to lift trade restrictions on "high technology items" to China if Beijing abides by the MTCR. The sanctions apply to the China Precision Machinery Import-Export Corporation (CPMIEC) and the China Great Wall Industry Corporation (CGWIC). [Bill Gertz and Warren Strobel, "US Set To Drop Sanction If China Obeys Missile Pact," Washington Times, 30 January 1992, pp. A1, A9]

1/31/92: US intelligence reports indicated that China delivered guidance units to Pakistan that could be used as flight-control in M-11 ballistic missiles. The sales were important because the United States is planning to lift sanctions on the sale of US high-speed computers that were established in the spring of 1992, when the United States discovered that China delivered M-11 launchers to Pakistan. During US Secretary of State James Baker's visit to China in November 1991, Chinese officials promised to abide by the MTCR if sanctions were lifted. ["China Said To Sell Parts For Missiles," New York Times, 31 January 1992, pp. A1, A2]

1991

11/21/91: Chinese Foreign Ministry spokesman Wu Jianmin stated after discussions between US Secretary of State James Baker and Chinese Foreign Minister Qian Qichen that "China intends to observe the MTCR guidelines and parameters...but the condition to this is that the US side lifts the three measures or sanctions against China announced on the 19th of June....China will honor its word." ["The Credibility Of China's Nonproliferation Pledges And United States Sanctions: 1984-1996," compiled by the minority staff, Senate Governmental Affairs Committee, Summer 1996]

11/17/91: At a press conference following his talks with Chinese Foreign Minister Qian Qichen, US Secretary of State James Baker stated:

"First of all, on the missile technology control regime (MTCR), the Chinese have told use that they intend to observe the MTCR guidelines and parameters. To us, this means that they will apply them to any exports of missiles and related technology. We understand that this applies to the M-9 and M-11 missiles. The Chinese have told use that they will make this unconditional commitment to the MTCR guidelines if we will remove the proliferation sanctions imposed June 16 on two Chinese companies and on the licensing of high-speed computers and satellite for China." ["The Credibility Of China's Nonproliferation Pledges And United States Sanctions: 1984-1996," compiled by the minority staff, Senate Governmental Affairs Committee, Summer 1996]

06/25/91: US Secretary of State James Baker officially determined that the China Great Wall Industry Corporation (CGWIC) and China Precision Machinery Import-Export Corporation (CPMIEC) had conducted missile technology sales requiring the imposition of US sanctions.  ["The Credibility Of China's Nonproliferation Pledges And United States Sanctions: 1984-1996," compiled by the minority staff, Senate Governmental Affairs Committee, Summer 1996]

Pakistan's Space and Upper Atmosphere Research Commission (SUPARCO) was also sanctioned.

Sanctions were imposed on both CGWIC and CPMIEC, and were waived in March 1992.

The official notification of sanctions reads as follows:

[Imposition of Missile Proliferation Sanctions Against Chinese and Pakistani Entities]

06/16/91: US State Department spokesperson Tutwiler announced that US President George Bush had imposed computer export sanctions on China and that he will not waive sanctions which prohibit the export of US technology for satellites launched on Chinese rockets.  ["The Credibility Of China's Nonproliferation Pledges And United States Sanctions: 1984-1996," compiled by the minority staff, Senate Governmental Affairs Committee, Summer 1996]

06/12/91: US Secretary of State James Baker stated during testimony that: "We have made it clear that there would be potentially profound consequences for our bilateral relationship [with China] if they were to change the missile export policy that they have presented to us." Baker added, "We told them as well that we think sending M-11s to Pakistan would constitute grave threats to the region and could have bilateral consequences."  ["The Credibility Of China's Nonproliferation Pledges And United States Sanctions: 1984-1996," compiled by the minority staff, Senate Governmental Affairs Committee, Summer 1996]

06/91: The US Congress approved of the Bush Administration's restriction of high-tech computer sales to China and the ban on participation by US companies in additional Chinese satellite projects due to Chinese widespread exports of nuclear and missile technologies. The US action was triggered by China's delivery of M-11 components to Pakistan for local assembly. Likewise, Syria is expected to be the recipient of M-9s later in June 1991. In response to the US policy decisions, the Chinese Foreign Ministry repeated that "China has always adopted a serious, responsible and prudent position on international arms trade." ["China," Milavnews, June 1991, p. 7]

05/27/91: In response to Chinese M-11 sales to Pakistan, the Bush administration announced it would impose missile-related economic sanctions on China in three areas: (1) Prevention of the sale of 20 high-speed computers which can be used in missile flight analysis to Chinese arms export-related firms; (2) US firms were not allowed to participate in seven Chinese satellite launches; (3) US companies were not allowed to sell missile technology to CGWIC and CPMIEC because of their involvement in the M-11 sale.  [Bingham Kennedy, Jr., "Curbing Chinese Missile Sales: From Imposing To Negotiating China's Adherence To The MTCR," Journal of Northeast Asian Studies, Spring 1996, p. 60; "The Credibility Of China's Nonproliferation Pledges And United States Sanctions: 1984-1996," compiled by the minority staff, Senate Governmental Affairs Committee, Summer 1996]

05/27/91: An unidentified official, speaking for the Bush Administration, announced on 27 May 1991 that 20 licenses will be blocked on $30 million worth of supercomputers intended China. The United States is also blocking export of military sensitive items and satellite technology to the Chinese Precision Machinery Import-Export Corporation (CPMIEC). These steps are being taken to discourage Chinese long-range missile sales. US State Department official Reginald Bartholomew is scheduled to visit China in June 1991 to discuss US concerns. ["Bush To Renew Favored Status For China Trade," Wall Street Journal, 28 May 1991, pp. A3, A6]

1988

3/9/88: A US State Department official announced that the Reagan administration was lifting of the sanctions imposed on China on 22 October 1987 because it was satisfied that China was not transferring Silkworm anti-ship cruise missiles to Iran. The lifting of sanctions coincided with Chinese Foreign Minister Wu Xueqian's visit to Washington. [Dianne E. Rennack, "China: US Economic Sanctions," CRS Report for Congress, Congressional Research Service, The Library of Congress, 1 July 1996, p. 15]

1987

10/22/87: The Reagan administration sanctioned China for its transfers of Silkworm anti-ship cruise missiles to Iran by suspending the process of gradual liberalization of the sophistication of high-technology items which could be sold to China. The sanctions were lifted on 9 March 1988. [Dianne E. Rennack, "China: US Economic Sanctions," CRS Report for Congress, Congressional Research Service, The Library of Congress, 1 July 1996, p. 15]

This material is produced independently for NTI by the James Martin Center for Nonproliferation Studies at the Monterey Institute of International Studies and does not necessarily reflect the opinions of and has not been independently verified by NTI or its directors, officers, employees, agents. Copyright © 2007 by MIIS.

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