US Sanctions Chinese Firms Over Pakistan’s Missile Program

US Sanctions Chinese Firms

US sanctions four entities involved in Pakistan’s ballistic missile program, including three Chinese companies

The U.S. State Department stated on Friday (April 19) that the United States has imposed sanctions on three Chinese companies and one Belarusian company because these companies are involved in providing ballistic missile-related items for Pakistan’s ballistic missile program, including its long-range missile program.

Key Concepts

• The U.S. State Department sanctions Chinese and Belarusian companies for supporting Pakistan’s missile program.
• Sanctions imposed under Executive Order 13382 target weapons of mass destruction proliferators.
• Chinese companies were identified as providing missile-related equipment to Pakistan.
• Equipment includes fiber winding machines, stir welding equipment, and testing equipment for rocket engines.
• The Minsk Wheel Tractor Factory supplies chassis for ballistic missile launches.
• Property and interests in property of designated persons in the U.S. or owned by U.S. persons are blocked.
• Transactions involving blocked persons are prohibited unless authorized by OFAC.
• Three Chinese entities were sanctioned in October for supporting Pakistan’s ballistic missile program.

The four companies sanctioned are China’s Xi’an Longde Technology Development Company Limited, Tianjin Creative Source International Trade Co. Ltd., Beijing Guhong Technology Ltd. (Granpect Co. Ltd.), and the Minsk Wheel Tractor Plant in Belarus.

The State Department statement said the sanctions were imposed in accordance with U.S. Executive Order 13382, which targets proliferators of weapons of mass destruction and their delivery vehicles.

U.S. State Department spokesman Matthew Miller said Friday that these entities “engage in activities or transactions that materially contribute to the proliferation of weapons of mass destruction or their delivery vehicles to Pakistan, or pose a risk of materially contributing to such proliferation,” including any effort to manufacture, acquire, possess, develop, transport, transfer, or use such items”.

“The United States is committed to strengthening the global nonproliferation regime by taking actions to disrupt procurement networks that support proliferation activities of concern,” Miller said.

China is an ally of Pakistan and has been a major supplier of weapons and defense equipment to Islamabad’s military modernization program.

According to the U.S. State Department, Xi’an Longde Technology has provided missile-related equipment, including fiber winding machines, for Pakistan’s long-range ballistic missile program. The fiber winding machines can be used to produce rocket engine casings.

Tianjin Trogy Source provides missile-related equipment for Pakistan’s long-range ballistic missile program, including stir welding equipment (the United States assesses that this equipment can be used to manufacture propellant tanks used in space launch vehicles) and linear accelerator systems (the United States believes that this equipment can be used for solid testing of rocket engines).

The U.S. State Department believes that the purchase of the Tianjin company is likely to provide support to Pakistan’s Space and Upper Atmosphere Research Commission (SUPARCO), which is responsible for the development and production of a specific type of ballistic missile.

Beijing Guhong Technology cooperates with SUPARCO to provide equipment for testing large-diameter rocket engines. In addition, Beijing Guhong Technology also cooperates with Pakistan’s National Defense Complex (NDC) to provide equipment for the testing of large-diameter rocket engines.

In addition, the Minsk Wheel Tractor Factory provides chassis for Pakistan’s long-range ballistic missile program to support ballistic missile launches.

A statement from the U.S. Department of State said that under relevant laws, all property and interests in property of designated persons in the United States or owned or controlled by U.S. persons are blocked and must be reported to the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC).

In addition, all individuals or entities that directly or indirectly own 50% or more of the ownership of one or more blocked persons will also be blocked.

All transactions by U.S. persons within, or in transit through, the United States involving any property or interest in property of a designated or otherwise blocked person are prohibited unless authorized by a general or specific license issued by OFAC or exemption.

In October last year, the United States also sanctioned three Chinese entities involved in Pakistan’s ballistic missile program because these companies provided items for Pakistan’s ballistic missile program that could be used in missiles.

The three companies are China General Technology Limited, Beijing Luo Luo Technology Development Co. Ltd, and Changzhou Utek Composite Company Ltd.