US sanctions Chinese firm over weapons sales

21 Sep, 2004

The US government on Monday ordered sanctions against a Chinese firm accused of trafficking material and technical expertise that could be used for weapons of mass destruction, the State Department said.
Xinshidai, which markets equipment for many of the top Chinese state owned firms "provided material assistance to a country for programmes capable of delivering weapons of mass destruction," said an official speaking on condition of anonymity. The official would not name the country, which bought the equipment.
Under the order the United States will ban imports of Xinshidai goods, contracts with the firm and the giving of any kind of US assistance to the Chinese firm, the State Department's bureau of non-proliferation said.
The official said the measures would have an impact on Xinshidai but gave no other details.
A year ago, the United States imposed sanctions on the Chinese government and the state-run China North Industries Incorporated (NORINCO) accusing them of selling advanced missile technology to an unnamed state.
NORINCO has in the past been punished for sales to Iran. The company is linked to Xinshidai.
The earlier measures included a two-year ban on all US export licenses and new US government contracts for "all activities of the Chinese government relating to the development or production of missile equipment or technology and all activities of the Chinese government affecting the development or production of electronics, space systems or equipment and military aircraft."
But the two-year ban on the US import of Chinese products related to those activities was waived until 2004. Under a separate order published on Monday the waiver was extended for another six months.
The waiver suggests that Washington has an existing contract with Beijing that it wants fulfilled.

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