China Poly Group Corporation

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Last Updated: August 22, 2009
Other Name: Poly Group; 中国保利集团公司; Baoli; formerly Poly Technologies Corporation; 保利科技有限公司
Location: Beijing, China
Subordinate To: State-owned Assets Supervision and Administration Commission
Size: Massive commercial conglomerate of civilian and military industries; total assets RMB 382.9 billion (2014). [1]
Facility Status: Active

The China Poly Group Corporation (the Poly Group) is the successor company to Poly Technologies, which was founded in 1984 to compete with China North Industry Corporation (NORINCO). [2] Poly Technologies was initially the main commercial export arm under the Equipment Department of the General Staff Department of the People’s Liberation Army (PLA), and operated out of China International Trust and Investment Corporation (CITIC). [3] Poly Technologies coordinated the sales of the Dong Fang-3 (DF-3) intermediate-range ballistic missiles to Saudi Arabia in 1985-1988. [4]

China’s State Council and Central Military Committee approved the founding of Poly Group in February 1992, by integrating 18 smaller companies into one large entity which focused on four main areas, 1) defense, 2) energy & resources, 3) real estate and 4) culture & arts. [5] Poly Technologies was one of the companies that was integrated into the Poly Group, and the former is identified as a subsidiary of the latter. In March 1999, the supervision of the Poly Group was transferred from the People’s Liberation Army (PLA) to the Central Large State Owned Enterprise’s Working Committee. In 2003, supervisory control was handed over to the State-owned Assets Supervision and Administration Commission (SASAC), where it has stayed since. In 2010, the China New Era Corporation’s military-related business merged with the Poly Group. [6]

While Poly Technologies, has overseen and facilitated missile exports in the past, Poly Group appears to be more involved in conventional arms exports, including rifles, rocket systems, naval vessels, grenade launchers, and anti-aircraft missile systems, [7] as well as civilian infrastructure development. Other branches of the conglomerate have also become well known, such as the Beijing Poly International Auction Company. [8] It is unclear to what extent Poly Group’s exports still include delivery systems for weapons of mass destruction (WMD).

On 11 February 2013, the US Department of State imposed sanctions Poly Technologies, saying that the company had violated the Iran, North Korea, and Syria Nonproliferation Act (INKSNA). Poly Technologies denied exporting weapons or technology to nations or regions under UN Security Council Resolution sanctions. [9]

Sources:
[1] “集团简介 [About Us],” China Poly Group Corporation, www.poly.com.cn.
[2] Yan Kong, "China's Arms Trade Bureaucracy," Jane's Intelligence Review, February 1994, p. 82; 1984 date from “集团简介[Introduction to the Group],” China Poly Group Corporation, www.poly.com.cn.
[3] Yan Kong, "China's Arms Trade Bureaucracy," Jane's Intelligence Review, February 1994, p. 82; Evan S. Medeiros and Bates Gill, “China’s Arms Exports: Policy, Players and Process,” Strategic Studies Institute, August 2000, p. 43.
[4] Hua Di, “China’s Case: Ballistic Missile Proliferation,” in Potter and Jencks eds., The International Missile Bazaar: The New Suppliers’ Network (Westview Pr, 1993) p. 170.
[5] Iven, Aledandre and Domenique Schwestermann, “China Poly Group Corporation,” University of Zurich International Business in Chinese Enterprises Seminar, 30 September 2013, p. 4, via: www.scribd.com; Hu Haiyan, “Less Proves to be More for Poly Group, China Daily, 5 June 2013, http://usa.chinadaily.com.cn.
[6] “集团简介 [Introduction to the Group],” China Poly Group Corporation, www.poly.com.cn.
[7] Celia W. Dugger, “Zimbabwe Arms Shipped by China Spark an Uproar,” New York Times, 19 April 2008, www.nytimes.com; Mrityunjoy Mazumdar, “Ghana to Re-capitalize Navy in Two Years,” Jane’s Defense Security Report, 22 July 2010, www.janes.com; Gunter Endres, “China Takes Center Stage,” Jane’s Exhibition News (IHS Global Limited), 20 September 2010, home.janes.com.
[8] Cain Nunns, “Art of the State: China’s Party-run Auction House is Booming,” The Global Post, 19 February 2013, www.globalpost.com; Cain Nunns, “China’s Poly Group: The Most Important Company You’ve Never Heard Of,” The Global Post, 25 February 2013, www.globalpost.com; Graham Bowley and David Barboza, “An Art Power Rises in China, Posing Issue for Reform,” The New York Times, 16 December 2013, www.nytimes.com.
[9] Office of the Spokesperson, “Imposition of Nonproliferation Sanctions Against Foreign Entities and Individuals,” US Department of State, 11 Februrary 2013, www.state.gov.
[10] “Chinese Firm Voices Opposition to US Sanctions,” China Daily USA, 11 February 2013, http://usa.chinadaily.com.cn.

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