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China's Hidden Agenda Charles R. Smith The Bush administration has rejected a bid by a U.S.-China venture to take over satellite operator Asia Satellite Telecommunications (AsiaSat). AsiaSat, according to the mainstream media is a private, Hong Kong-based, satellite company operating three U.S. made spacecraft. AsiaSat, a company founded in 1988, operates several communications satellites in the Far East bought from U.S. manufacturers such as Hughes and Lockheed. If you read the AP and other newswires, AsiaSat seems no more threatening than any other satellite TV provider. Yet, according to Aviation Week and Space Technology, in addition to direct TV broadcasts, AsiaSat satellites regularly carry communications traffic for Chinese military units and Chinese military owned companies. Of course, I do not expect the AP to read something as technical as McGraw Hill's weekly space journal. The mainstream press noted that the Bush administration invoked "export approval powers dating back to the Cold War" but did not explain why there might be concern over such a restructuring deal. The deal involved GE Capital Equity Investments and China's Citic Group. The two companies teamed to offer a takeover bid of AsiaSat, removing it from the market in a $295 million bid. Both GE and CITIC hold 34 percent of AsiaSat. The deal, which requires approvals from several governments, would have given the two companies a 50-50 percent share of AsiaSat. However, the Bush administration refused to give the plan the go-ahead, noting the deal was subject to the U.S. International Traffic in Arms Regulations (ITAR), which govern the export of technologies with potential military applications. The false portrayal of the proposed deal by the press was the AP story kicker which ran at the end of virtually every publication, noting that the denial came after China's provocative anti-satellite shoot down. The kicker demonstrates both the ignorance and ineptitude of the current mainstream media when covering such events. Story Continues Below
While the anti-satellite shoot down may have upset some folks to the point of action, the facts concerning AsiaSat and CITIC are something of record. It is well documented that CITIC is not an ordinary Beijing-based finance firm. CITIC is a front for Chinese Army-owned munitions manufacturer Poly Technologies Corporation. According to a 1997 report prepared by the Rand Corporation, Poly Technologies was founded in 1984 as a subsidiary of CITIC. "Poly Technologies, Ltd. was founded in 1984, ostensibly as a subsidiary of CITIC, although it was later exposed to be the primary commercial arm of the PLA General Staff Department's Equipment Sub-Department," states the Rand report. "Throughout the 1980s, Poly sold hundreds of millions of dollars of largely surplus arms around the world, exporting to customers in Thailand, Burma, Iran, Pakistan, and the United States." "CITIC does enter into business partnerships with and provide logistical assistance to PLA and defense-industrial companies like Poly," noted the 1997 Rand report. The Rand report also stated that CITIC's Poly Group once tried to smuggle machine guns into the United States. "Poly's U.S. subsidiaries were abruptly closed in August 1996. Allegedly, Poly's representative, Robert Ma, conspired with China North Industries Corporation's (NORINCO) representative, Richard Chen, and a number of businessmen in California to illegally import 2000 AK-47s into the United States," states the Rand report. Poly Technologies was run by international arms dealer Wang Jun and his "princeling" friend, the powerful He Ping, son-in-law of Deng Xiaoping. The Rand Corporation noted that "Wang Jung is both director of CITIC and chairman of Poly Group, the arms trading company of the General Staff Department." In 1996, Poly Chairman Wang Jun met with President Clinton inside the White House with convicted China-Gate figure Charlie Trie. Charlie Trie donated hundreds of thousands of dollars to the 1996 Clinton/Gore campaign from Chinese sources much of which was later returned by the Democratic Party. CITIC is not only involved in the international sale of illegal arms, it is also interested in advanced U.S. technology. The restructure of AsiaSat could provide the Chinese military with access to new U.S. built satellites backed by American financing. The Bush administration has also struck another firm closely aligned with the Clinton years. The China National Precision Machinery Import and Export Corp. (CPMIEC) was favored and listed as a Chinese Army owned company ready to do business in the United States. Today, CPMIEC has earned itself sanctions for providing missile technology to Syria and Iran. The mainstream media reported that CPMIEC officials denied having any military business with Syria or Iran. However, official publications from CPMIEC give detailed information on a new cruise missile for export. The YJ-62 anti-ship missile is now being offered to Chinese military customers for export under the designation of C602. The turbojet-powered missile has a range of 174 miles and flies a low level mission, skimming the sea surface at 98 feet. During the attack phase the missile dives under 30 feet to avoid defense detection. The C602 resembles the U.S. Navy Tomahawk in that it has a conventional mid-body wing, which deploy after launch. The engine inlet is mounted slightly forward of a cruciform tail configuration. The YJ-62 will arm Chinese Navy guided-missile destroyers. Two of the new 052C destroyers under construction are fitted with four-canister launchers. Chinese officials claimed that the C602 export version of the cruise missile uses a strap-down laser ring gyro system coupled with GPS, and agile frequency radar for better attack targeting. China is also offering an advanced version of the C802 anti-ship missile for export. The C802A has an extended range of over 100 miles and a new turbo-jet propulsion system. The C802A can be adapted for air, land, sea, or submarine launch. China has previously sold copies of the C802 to Iran and the Iranians are expected to arm their aircraft and new Russian submarines with the deadly missile. During the 1990s, Chinese officials assured President Clinton that no more C802 missiles or technology would be sold to Iran. This assurance turned out to be false. Iran has acquired C802 manufacturing technology from CPMIEC. Iranian built C802 missiles ended up in the hands of Hezbollah during the summer of 2006. Hezbollah used the missiles to strike an Israeli warship and sink an Egyptian freighter. Intelligence reports from Israeli sources show the Chinese designed C802 has now appeared in the Syrian inventory. China has also put a new land attack cruise missile on display. The YJ-63 has become China's first in-service land attack missile. The YJ-63 is clearly related to the Silkworm and Russian Styx class cruise missile but is powered by an advanced turbo-jet. YJ-63 missile technology appears to be identical to the Iranian Raad missile co-developed by Tehran and Beijing. 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 Raad. 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-kilogram payload over 300 kilogram. The performance of the Raad exceeds the MTCR restrictions. Again and again, the lies of the Chinese leadership and corruption that prevailed during the 1990s has come back to haunt America. Sen. Hillary Clinton has pledged that her election to the White House is a "two-fer" and that husband Bill will have a prominent role to play. Alas, do not expect a liberal press to cover scandals from the Clinton era.
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