US punishes China/Iran over missile proliferation
The United States has imposed sanctions against an Iranian and Chinese firm on suspicion of ballistic missile proliferation.
The sanctions, retroactively in effect from May 9, entail an effective ban on all US trade with North China Industries (Norinco) and Iranian firm Shahid Hemmat Industrial group.
US President George W. Bush’s administration has said the Chinese firm surreptitiously sold equipment to Iran, thereby building Iran’s ballistic missile programme.
The announcement comes ahead of George W. Bush’s meeting with China’s new leader Wen Xiabao in Russia on May 31.
The decision is likely to hit Norinco hard. It is thought the conglomerate will lose more than 100 million dollars in annual exports to America over the next two years. Norinco is a major client of Walmart.
Overall, it is expected to lose exports worth up to 1 billion dollars a year.
According to estimates, the US imported around 125 billion dollars worth of China products in 2002, around 10% of total US imports.
Former U.S. diplomat John Tkacik said: ‘For 10 years the State Department has basically been slapping China on the wrist for this kind of behavior.
‘What we’re seeing here is the end of patience.’
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