U.S. Sanctions Firms in China, Iran, and Moldova

Article excerpt

On May 9, the United States imposed sanctions on a Chinese company, an Iranian firm, and Moldovan entities for what the State Department described as missile-proliferation activities.

The Chinese and Iranian companies will be prohibited from signing contracts with the U.S. government or receiving U.S. aid for two years. They will also be forbidden from importing or exporting any civilian goods or services from the United States. The two Moldovan companies and one individual will be barred for two years from any U.S. contracts or deals for missile-related items.

The sanctions are expected to have the most impact on the Chinese company, North China Industries Corporation (NORINCO), because it conducts a lot of U.S. business. According to its Web site, NORINCO makes 4,000 different kinds of products, including oil field equipment, vehicles, explosives, and firearms. No penalties were imposed on the Chinese, Iranian, or Moldovan governments.

NORINCO has been sanctioned by the United States previously. A State Department official dryly noted May 23 that the recent event marks "chapter 20 in an ongoing story."

It is uncertain whether the Chinese activities triggering the sanctions took place before or after the Chinese government issued its new policy regulating missile and missile-related exports in August 2002. …