China in sanctions warning for US

Discussion in 'China' started by Ray, May 1, 2014.

  1. Ray

    Ray The Chairman Defence Professionals Moderator

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    China in sanctions warning for US

    CHINA “resolutely opposes” US sanctions that could harm nonproliferation work between the two countries, it said yesterday, after Washington laid charges against a Chinese businessman accused of allegedly procuring missile parts for Iran.

    In a signal Washington would keep up pressure on Iran over its nuclear program, the US State Department also offered up to US$5 million for information leading to businessman Li Fangwei’s arrest or conviction.

    Federal prosecutors also seized US$6.9 million in funds traced to Li.

    “China resolutely opposes the United States citing domestic law to unilaterally impose sanctions on Chinese companies or individuals. We believe that what the United States has done will not help resolve the issue and will harm bilateral cooperation on counter proliferation, China’s Foreign Ministry spokesman Qin Gang said.

    China pays great attention to anti-proliferation export controls and will “seriously deal” with any violations of its laws, Qin told reporters at a regular press briefing.

    “China urges the United States to stop these wrong acts of putting sanctions on Chinese companies and individuals and return to the correct path of anti-proliferation cooperation,” Qin said.

    Li has been the target of US sanctions in the past for his alleged role as a supplier to Iran’s ballistic missile program.

    In 2009, he was charged with selling restricted materials to Iran by the Manhattan District Attorney and the Treasury banned him and his company, LIMMT, from conducting business in the US without a license or authorization.

    The latest actions further limit Li’s ability to conduct business worldwide.

    In February, Li said he continued to get commercial inquiries from Iran but only for legitimate merchandise.

    Li said his metals company, LIMMT, had stopped selling to Iran once the US began sanctioning the firm several years ago. Reuters has been unable to contact him since that time.

    Calls to multiple telephone numbers of LIMMT, based in the northeastern Chinese city of Dalian, either went unanswered, or the person answering hung up when asked for Li.

    Described as a “known proliferator” and a “principal supplier” to Iran’s ballistic missile program, Li has also been accused of trying to buy materials from the US, China and other countries that could be used by Iran to produce or deliver weapons of mass destruction.

    Iran and a group of world powers reached a temporary agreement in November under which Tehran would get about US$7 billion in sanctions relief in return for steps to restrain its nuclear activities.

    In March, a US official said Iran had pursued buying banned components for its nuclear and missile programs, even while it was striking the interim deal to limit its disputed nuclear program.

    China in sanctions warning for US | Shanghai Daily

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    If the US puts sanctions on China as she has done for Russia, how will China fare?
     
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  3. W.G.Ewald

    W.G.Ewald Defence Professionals/ DFI member of 2 Defence Professionals

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    The China case is much less extensive and the Russia sanctions continue to expand, I believe.
     
  4. asianobserve

    asianobserve Elite Member Elite Member

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    Unlike Russia China is in a much better position to do a tit-for-ta sanctions against the US. China can wreak havoc on the US in the short to medium term but of course in the long term it will destroy itself more than the US since we all know that it's economic engine is based on foreign industries in China and exports to the West.
     
  5. Ray

    Ray The Chairman Defence Professionals Moderator

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    Interesting point.

    Could you amplify?

    It is worth understanding this issue for what its worth.
     
  6. asianobserve

    asianobserve Elite Member Elite Member

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    There are Billions of direct investment of American companies in China. The US car industry alone is heavily engaged in China with some brands having more sales in China than the US. US engineering companies like GE and aerospace companies like Boeing are invested and heavily dependent on Chinese market. So just imagine if China will start freezing the assets of American businesses in China. We saw the experience of Japanese companies in China during the anti-Japanese campaign after Japan bought the disputed islands. So China can also do a slow screw tightening sanction regime against the US if it chooses to: it can start with smaller US companies in China and then will slowly go up to bigger and bigger companies. If the US will respond with targeted sanctions via financial institutions then China can very much pressure on the international financial system by dumping the huge amount of US bonds it is holding. And if US allies start joining in the fray then China can also dump their bonds and sanctioning their private companies in China. It can also leverage the deep engagement of foreign banks in China. No doubt the damage will be immense to both sides but on the short term at least the impact will be felt harder in US (by IS companies).

    It would be right to say that international trade and finance may grind to a halt in a full blown trade/sanctions war between US and China.


    Thanks
     
    Last edited by a moderator: May 2, 2014
  7. jon88

    jon88 Regular Member

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    For once I am siding with China. How can the US dictate who a foreign company or individual does business with when their very own country do not even sanction it. Just because Iran is not your friend, I am not supposed to be a friend of Iran? Come on, thats what a high school bully would do.

    Just the same...India can do business with anyone she wants,... the US have no say in this....the US can mind it's own business, we mind our own.
     

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