U.S. Warns Iran Over Missiles, Punishes Chinese Firms

Tue January 18, 2005 02:15 PM ET
By Adam Entous

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WASHINGTON (Reuters) - The Bush administration expressed concern on Tuesday about Iran's pursuit of longer-range ballistic missiles and imposed sanctions on Chinese companies it accused of helping Tehran in those efforts.

The economic sanctions -- which the Chinese government denounced as unjustified -- were part of a broader campaign by the Bush administration to keep Iran from obtaining nuclear weapons and the means to deliver them. Iran denies its nuclear facilities are to be used to make weapons.

"I hope we can solve it diplomatically. But I will never take any option off the table," President Bush told NBC television in an interview when asked about the potential for military action against Iran.

The Bush administration made no public announcement of the sanctions, first reported by The New York Times on Tuesday. The penalties and the Chinese companies affected were disclosed in government documents published earlier this month.

U.S. officials say the exports to Iran included high-performance metals, the Times said.

White House spokesman Scott McClellan said Bush will work with European allies "to find a diplomatic resolution to Iran's pursuit of nuclear weapons."

"They made some very clear commitments and we will see by their actions whether or not they are finally serious and willing to follow through on those commitments," McClellan said.

"We have a number of concerns about Iran, including their pursuit of nuclear weapons and their interest in longer-range ballistic missiles, and we've expressed those concerns," McClellan added.

CHINA OPPOSES WEAPONS SPREAD

China on Tuesday said it stands opposed to any spread of weapons of mass destruction.

"The U.S. government has wantonly launched sanctions against Chinese companies without any evidence," Foreign Ministry spokesman Kong Quan told a news briefing in Beijing.

The penalties bar the companies from doing business with the U.S. government and prevent them from obtaining export licenses allowing them to buy controlled technologies from American companies.

The Chinese companies on the penalties list include China Aero-Technology Import Export Corp.; China Great Wall Industry Corp.; and China North Industry Corp., also known as NORINCO.

Also targeted are: Beijing Alite Technologies Company Limited; China's Q.C. Chen; Wha Cheong Tai Co.; and Zibo Chemet Equipment Corp., known as well as Chemet Global Ltd.; Ecoma Enterprise Co. Ltd. of Taiwan; and Paeksan Associated Corp. of North Korea.

Bush has praised China for its help in seeking a diplomatic end to the North Korean nuclear standoff.

Two of the largest companies cited by the administration, China Great Wall Industry and China North Industry, previously have been penalized by the United States. Each is closely linked to the Chinese military.

In December, the State Department imposed similar sanctions on four Chinese companies for selling weapons or arms-related technology, including Liaoning Jiayi Metals and Minerals Co., Wha Cheong Tai Co. Ltd. and Shanghai Triple International Ltd.