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China Precision Machinery Import-Export Corporation (CPMIEC)

Last Modified: Nov. 16, 2012
Other Name: 中国精密机械进出口公司
Location: Beijing, China
Subordinate To: A member of the Xinshidai (New Era) Group[1]
Size: Unknown
Facility Status: Active

The former Ministry of Space Industry (MSI) established China Precision Machinery Import and Export Corporation (CPMIEC) in 1980 for sales of missiles manufactured under MSI’s jurisdiction.[2] CPMIEC currently markets missiles produced by MSI’s successors, the China Aerospace Science and Technology Corporation (CASC) and the China Aerospace Science and Industry Corporation (CASIC).[3] CPMIEC itself does not own missile production facilities, but rather has lateral relationships with missile and missile technology providers. It markets these providers’ products, negotiates, and concludes transactions, directs missile production agendas, and acquires missile technology from abroad.[4]

CPMIEC has exported ballistic missiles with WMD capability, including the Dong Fang-15 (DF-15/ M-9/CSS-6), Dong Fang-11 (DF-11/M-11/CSS-7), and M-7 (CSS-8).[5] In 2007, CPMIEC announced two more surface-to-surface missiles (SSMs) for export, the B611M and the P12. The B611M has a range between 80 and 260 km, and a launch weight of 2,183 kg, including a 480 kg warhead. The P12 has a range between 50 and 150 km, and a launch weight of 2,070 kg, including a 450 kg warhead. Both systems are mobile and can be launched from a 6x6 chassis.[6]

Because of CPMIEC’s sales of missile technology to Iran and Pakistan, the U.S. Government sanctioned the corporation and its subsidiaries multiple times and prohibited all U.S. persons and entities from engaging in business with CPMIEC.[7] The U.S. State Department sanctioned CPMIEC in July 2003 pursuant to Executive Order 12938,[8] and the U.S. Treasury Department sanctioned CPMIEC in June 2006 pursuant to Executive Order 13382.[9]

In 2009 and 2010, the Wisconsin Project alleged that CPMIEC and its subsidiaries altered their names to evade sanctions. For example, CPMIEC Shanghai Pudong Company used the aliases “China JMM Import & Export Shanghai Pudong Corporation” and “China JMM Import and Export Shanghai Pudong Corporation.”[10] CPMIEC Fuzhou Company used the alias “Sharp Industrial Company Ltd.”[11]

Sources:
[1] U.S. Government Printing Office, “Testimony of Daniel A. Pinkston Before U.S.-China Economic and Security Review Commission Hearing on China’s Proliferation Practices and Its Role in the North Korea Nuclear Crisis on March 10 2005,” 2005 Report to Congress of the U.S.-China Economic and Security Review Commission, November 2005.
[2] Hua Di, “China’s Case: Ballistic Missile Proliferation,” in Potter and Jencks, The International Missile Bazaar: The New Suppliers’ Network, p. 165; and “China Precision Machinery Import & Export Corporation (CPMIEC),” Jane’s World Defence Industry, 14 January 2003, www.janes.com.
[3] Evan S. Medeiros, et al., A New Direction for China’s Defense Industry (Santa Monica: RAND, 2005) www.rand.org, p. 52.
[4] “China Precision Machinery Import & Export Corporation (CPMIEC),” Jane’s World Defence Industry, 14 January 2003, www.janes.com.
[5] “Weapon Inventories – Offensive/Defensive Weapons Tables, China,” Jane’s Strategic Weapon Systems, 6 February 2012, www.janes.com.
[6] “China Approves New Surface-to-Surface Missiles for Export,” Jane’s International Defence Review, 19 April 2007, www.janes.com.
[7] U.S. Department of Justice, “Director of Singapore Firm Pleads Guilty to Illegally Exporting Controlled Aircraft Components to Iran,” Press Release, 13 March 2009, www.bis.doc.gov.
[8] U.S. Department of State, “Bureau of Nonproliferation; Imposition of Nonproliferation Measures on an Entity in China, Including a Ban on U.S. Government Procurement,” Federal Register, Vol. 68, No. 146, 30 July 2003, p. 44832.
[9] U.S. Department of State, “Executive Order 13382,” www.state.gov.
[10] Matthew Godsey, “Chinese Companies Evade U.S. Trade Ban: A Report by the Wisconsin Project on Nuclear Arms Control,” 15 December 2009, www.wisconsinproject.org; and Peter Fritsch, “Chinese Evade U.S. Sanctions on Iran,” The Wall Street Journal, 4 January 2010, www.wsj.com.
[11] Matthew Godsey, “Chinese Companies Evade U.S. Trade Ban: A Report by the Wisconsin Project on Nuclear Arms Control,” 15 December 2009, www.wisconsinproject.org.

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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, or agents.

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