Monday, October 5, 2009

U.S. Slaps Sanctions on Asian Friends, Foes

Defense News


U.S. Slaps Sanctions on Asian Friends, Foes

By Wendell Minnick

Taipei - The U.S. State Department slapped sanctions on Chinese, South Korean and North Korean companies for violating Section III of the Iran, North Korea and Syria Nonproliferation Act.

The act punishes foreign entities for transferring to, or making acquisitions of, equipment and technology controlled under multilateral weapons of mass destruction control lists or the development of cruise or ballistic missile systems.

Specifics were unavailable, but the U.S. determined Aug. 12 that three Chinese companies were in violation, including China Xinshidai, China Shipbuilding and Offshore International and Huazhong CNC (HCNC); two North Korean companies, Korea Mining Development (KOMID) and Korea Taesong Trading; and one South Korean company, Yolin/Yullin Tech.

Beijing-based China Xinshidai exports both defense and civilian products from China. Xinshidai's Web site features a dune buggy outfitted with a machine gun and a pile of "industrial explosives."

China Shipbuilding and Offshore International builds and designs a variety of military and commercial ships.

According to its Web site, the Wuhan-based HCNC, formerly under the Huazhong University of Science and Technology, is a "high-tech corporation that develops and manufactures Computer Numerical Control controllers, servo drives and motors to specification and delivers them to the leading machine tool builders."

"Our products have been sold in the U.S., Argentina, Thailand, Vietnam, Pakistan, Korea and Malaysia," said the Web site.

Pyongyang-based KOMID, also known as the Changgwang Sinyong Corp., is North Korea's primary arms dealer and main exporter of goods and equipment related to ballistic missiles and conventional weapons.

"KOMID offices are located in multiple countries with the main goal of facilitating weapon sales while seeking new customers for its weapons. U.S. sanctions for trading in missile technology have been repeatedly applied to the KOMID organization in the past ten years," said a February 2006 press release from the U.S. Treasury Department.

In 2005, the Treasury Department identified KOMID as the parent company of Pyongyang-based Hesong Trading and Tosong Technology Trading corporations.