U.S. should be cautious of imposing unilateral sanction on China: expert
Several Chinese companies which are on the U.S. government sanction list for allegedly transferring sensitive items to Iran's missile program denied the accusations on Monday, claiming that their exports to Iran were just "normal products" and that they may prepare documents to appeal to the U.S.' decision.
The comments come after the U.S. government published a statement on its website, announcing that "it has imposed sanctions on 30 foreign entities and individuals in 10 countries pursuant to the Iran, North Korea and Syria Nonproliferation Act" on Tuesday.
It also listed 11 entities that were sanctioned "specifically for transfers to Iran's missile program." Six Chinese enterprises including glass fiber producer Shenzhen Yataida High-tech and three Chinese citizens were on the list.
The two-year sanctions, which took effect on Tuesday, bar U.S. government departments from procuring any goods, services or technology from the designated businesses and individuals, according to the website of the U.S. Department of State. It also specified that new licenses of those listed entities will be denied, and any existing licenses will be suspended.
A spokeswoman for Yataida, surnamed Duan, said that they have not received any official documents from the U.S. government. "I was not aware of the sanctions until my friends forwarded the list to me yesterday… I am quite confused right now," she said.
Duan noted that her company's trade with Iran amounted to less than $100,000 in 2016, and that the export items were mainly low-tech products such as auto parts and fiberglass, which comply with China Customs regulations and have nothing to do with "transferring sensitive goods and technology" as claimed by the U.S. government.
"We are a small private company with about $1 million in annual revenue. Why are we accused of exporting controlled items that we are not involved with?" she asked.
An employee surnamed Tang from Ningbo New Century Import and Export Limit, another Chinese company on the sanctions list, also told the Global Times Monday that the firm's business "does not involve equipment related to weapons of mass destruction."
He refused to elaborate, saying only that some Chinese parties are dealing with the U.S. over the matter.
Duan said that her company is now in contact with the Shenzhen government, preparing relevant documents to appeal the decision.
The trade ban would have limited impact on the Shenzhen company's business. "In 2016, our company did about $3,000 in business with clients in the U.S., which is a quite small number," she said. But she worried that U.S. sanctions would potentially prompt other countries to follow suit.
Other Chinese companies and individuals on the list include Beijing Zhong Ke Electric Co, Dalian Zenghua Maoyi Youxian Gongsi, Sinotech (Dalian) Carbon, Graphite Corp, Jack Qin, Jack Wang and Karl Lee. They have not responded to the interview requests of the Global Times by press time on Monday.
Export misunderstandings
This is not the first time that the U.S. has gone after Chinese firms for shipping controlled items to Iran.
Earlier in March, ZTE Corp agreed to pay nearly $900 million for illegally exporting U.S. goods and technology to Iran, Reuters reported in March 8.
Commenting on the matter, Chinese Foreign Minister Wang Yi said at a press briefing on the sidelines of the annual two sessions that China always opposes unilateral sanctions imposed by foreign governments on Chinese enterprises.
"Export items for civilian purpose from these Chinese private companies are quite normal," Bai Ming, a research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Monday. He noted that China and the U.S. probably differ in the definition of civilian goods, and that there may be some misunderstanding on sensitive items.
But Bai noted that as the U.S. standard cannot be seen clearly, the country should be cautious on imposing sanctions on Chinese companies.
The incident should be held for observation at the moment before reaching a final conclusion, given the fragmented reports and evidence offered, he warned, while suggesting active communication with the U.S. is necessary.
