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Drop sanctions, Beijing tells US

SOUTH CHINA MORNING POST

RAY CHEUNG and AGENCIES

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Beijing yesterday demanded an end to sanctions on Chinese companies after the US accused two firms and a businessman of sending chemical and biological materials and technology to Iran.

"The United States' use of its domestic laws and national policy to issue sanctions towards Chinese companies is unreasonable and should be withdrawn," an official statement from the Ministry of Foreign Affairs said.

The statement also said that as a signatory to the Chemical Weapons Treaty, China "opposes countries that develop chemical weapons and does not aid countries to develop their chemical weapons . . . China prohibits the export of sensitive chemical products and their related production technology and equipment".

However, the statement did not specifically address the US sanctions forbidding the Liyang Chemical Equipment Company, the China Machinery and Electric Equipment Import and Export Company and Chen Qinchang from contracts with the US government for two years.

The sanctions, announced on Thursday in Washington by the US State Department's Bureau of Non-proliferation, accuse the two firms and Mr Chen of violating the Iran Non-Proliferation Act of 2000, which prohibits the sale of chemical and biological weapons components, missiles and missile technology to Iran. The US has labelled Iran a "rogue state" and a sponsor of terrorism.

US State Department spokesman Richard Boucher said: "The penalties were imposed for the transfer to Iran of equipment and technology that is used for the manufacture of chemical and biological weapons."

However, Mr Boucher offered no detail on what the Chinese entities sold to Iran.

The Washington Times said the sanctions followed a draft CIA report that said Iran had sought technology from China to develop its biological and chemical weapons capabilities.

The row comes only a month before US President George W. Bush's visit to Beijing.

The Bush administration has accused China of failing to control the export of chemical and biological weapons and missile technology to "rogue states".

 
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