Charles R. Smith
Thursday, Apr. 08, 2004

The newly sanctioned companies include several Chinese Army owned firms, as well as companies in Russia, Belarus, the United Arab Emirates, North Korea and Taiwan.

"A determination has been made that thirteen entities have engaged in activities that require the imposition of measures pursuant to Section 3 of the Iran Nonproliferation Act of 2000," states the sanctions announcement published Wednesday in the Federal Register.

According to the sanctions announcement, the penalties were imposed because of "the transfer to Iran of equipment and technology controlled under multilateral export control lists (Missile Technology Control Regime, Australia Group, Chemical Weapons Convention, Nuclear Suppliers Group, Wassenaar Arrangement) or otherwise having the potential to make a material contribution to the development of weapons of mass destruction (WMD) or cruise or ballistic missile systems."

Bio/Chemical Weapons for Iran

The State Department refused to comment on the sanctions, noting that national security sources might be put at risk. However, an investigation into the products manufactured by the Chinese firms show a disturbing element of military trade.

The Oriental Scientific Instruments Corporation (OSIC) manufactures a large array of pathological instruments and even supplies live monkey and primates for biological research. Live primates are required for the development of biological weapons that are effective against humans.

Another Chinese Army firm cited on the new sanctions list, the Zibo Chemical Equipment Plant, is the largest manufacturers of chemical process equipment in China and the top supplier of glass-lined equipment and other corrosion-resistant chemical equipment. Such equipment is required for the development and manufacture of nerve gas and other chemical weapons, which are highly corrosive.

Zibo's primary products also include spray-dryers. Spray-dryers are critical for the manufacture of biological weapons such as anthrax and smallpox.

Chinese Missiles for Iran

The sanctions also included two large Chinese army firms, China North Industries (NORINCO) and China Precision Machinery Import/Export Corporation (CPMIEC). Both companies have been linked to ballistic and cruise missile exports to Iran. Norinco is currently under U.S. sanctions imposed by the Bush administration with regards to missile component exports to Tehran.

The sanctions follow reports published by Aviation Week and Space Technology that Iran is developing a new, long-range, cruise missile based on the Chinese Silkworm airframe.

Images of the missile, referred to as the Raad, clearly show its design from the Chinese Silkworm. The fuselage, however, has been lengthened, and jet engine intake ducts have been placed forward of the rear control surfaces.

The Raad missile provides Iran with a long-range standoff-attack capability against naval targets. Iranian press reports describe Raad as capable of being ship-or shore-launched. The Raad is reportedly in production.

According to Aviation Week, Iranian Defense Minister Ali Shamkhani was reported saying that Raad had a range in excess of 300 miles.

While the missile appears intended for the anti-ship role, it can be employed as a land-attack weapon. The Silkworm missile on which Raad is based carries a 1,100-pound warhead. This allows the Raad to be fitted with a biological, chemical or nuclear payload.

China is reported to have provided Iran with the technology to produce the HY-2 Silkworm. Beijing has repeatedly said that it would abide by the Missile Technology Control Regime in order to avoid economic and political sanctions required by the MTCR agreements. The nonbinding MTCR requirements restrict ballistic or cruise missiles capable of delivering a 500-kg. payload over 300 km. The performance of the Raad exceeds the MTCR restrictions.

North Korean Missiles for Iran

The Bush administration also imposed sanctions on a North Korean company. The Changgwang Sinyong Corporation of North Korea was sanctioned for supplying Iran with military items.

U.S has previously cited the Changgwang Sinyong Corp. with sanctions for transferring missile technology to the Khan Research Laboratories (KRL) in Pakistan. The Khan Research labs have been cited as a major source of nuclear weapons technology to Libya, Iran, and North Korea.

The Pakistani government has repeatedly stated that their missile program is indigenous. However, the fact is that Pakistani missiles are largely based on Chinese and North Korean technology.

For example, Pakistan's long-range Ghauri missile is an identical copy of North Korea's Nodong missile, and the Pakistani Shaheen I is an identical copy of China's M-9 short-range missile.

The North Korean No-Dong ballistic missile was developed with Soviet Gorbachev era technical participation along with Chinese contributions and Iranian financial assistance.

North Korea has been linked to both Iranian cruise and ballistic missile efforts. The Shahab-3 is the primary Iranian ballistic long-range missile. The Shahab-3 is an identical copy of the North Korean No-Dong missile. North Korea also tested a cruise missile design in 2003 based on the Chinese Silkworm airframe.

"North Korean leader Kim Jung Il has admitted that Pyongyang sells missile technology to other na­tions, including Syria, Iran and Libya," stated U.S. Sen. Dianne Feinstein (D-Calif.) in April 2003.

Iran-China Share Interests

On Thursday, Chinese President Hu Jintao reaffirmed the close relationship between China and Iran. Hu stated that China is willing to enhance exchange and cooperation with Iran in all aspects and to push the friendly cooperation ties to a new high.

Hu told visiting Iranian Vice-President Mohammad Setarifar that the China-Iran ties progressed further in the new century with "the care and promotion from the two countries".

According to Hu, China and Iran shared a common interest in regional and international affairs.

Chinese Vice-Premier Zeng Peiyan and Iranian Vice-President Mohammad Setarifar on Thursday co-chaired the 12th meeting of the China-Iran Commission for Economic, Trade, Scientific and Technological Cooperation.

Zeng and Setarifar exchanged views on furthering the two countries' trade, economic, scientific and technological relations.

Real “Leadership"

While the sanctions have been greeted silently in Tehran and Beijing, others inside the international intelligence community were quick to applaud the Bush administration's actions.

"Finally, a Western government with the courage to stand up to the Chinese gangster regime and say shipping missiles to a radical Islamic 'republic' will have a negative consequence," stated Scott Newark, a Canadian security analyst.

"Leadership such as President Bush continues to display in international affairs tends to inspire people. Let's hope that this is the beginning of an economic revolution where Americans doing business in China look in the mirror and realize it's time to come home and bring the jobs and investment capital with them," stated Newark.

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