Chinese Evade U.S. Sanctions on Iran

While an embargo bans companies who sell arms to Iran from conducting business in the U.S., many Chinese companies are skirting the rules to keep the trade routes open. The Wall Street Journal reports:

A unit of state-owned China Precision Machinery Import-Export Corp., for example, has made nearly 300 illegal shipments to U.S. firms since a ban was imposed on CPMIEC and its affiliates in mid-2006, according to an analysis of shipping records by the Wisconsin Project on Nuclear Arms Control, a nonprofit proliferation watchdog.

A Wall Street Journal review of the records and interviews with officials at some of the American companies indicate that the U.S. firms likely were unaware they were doing business with banned entities, and in many cases were tripped up by altered company names.

The CPMIEC shipments, worth millions of dollars, include everything from anchors and drilling equipment to automobile parts and toys. In many cases, CPMIEC acted as a shipping intermediary — activity also banned under a 2006 presidential order.

January 4, 2010 10:31 PM
Posted By: