US Slaps Sanctions on 3 Chinese Firms Over Pakistan Missile Supplies

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Mayur Joshi
Mayur Joshihttp://www.mayurjoshi.com
Mayur Joshi is a forensic accounting evangelist based out of Pune. He regularly contributes to the Regtechtimes. He is the forensic accounting and financial crimes evangelist in India who is instrumental in designing india's first certification program in Anti Money Laundering. He is the author of 7 books on the financial crimes and compliance subjects.
In a significant move, the United States has imposed sanctions on three China-based companies and one from Belarus for their alleged roles in supplying components for ballistic missiles to Pakistan. The action marks Washington’s latest attempt to rein in Pakistan’s ballistic missile program, especially its long-range missile initiatives.
The sanctions come as a blow to Pakistan’s efforts to enhance its missile capabilities.

US slaps Sanctions

The companies targeted by the sanctions include Xi’an Longde Technology Development, Tianjin Creative Source International Trade, and Granpect Co. Ltd from China, along with the Minsk Wheel Tractor Plant from Belarus.
According to the US State Department, these entities have been involved in activities or transactions that either contribute to or pose a risk of contributing to the proliferation of weapons of mass destruction or their delivery systems by Pakistan. China, a steadfast ally of Pakistan, has long been a key supplier of arms and defence equipment to Islamabad, aiding the country’s military advancement.
Minsk Wheel Tractor Plant, for instance, supplied a special vehicle chassis crucial for Pakistan’s long-range ballistic missile program, while Xi’an Longde Technology Development provided missile-related equipment, including a filament winding machine. Tianjin Creative Source International Trade delivered stir welding equipment and a linear accelerator system, likely for Pakistan’s Space and Upper Atmosphere Research Commission. This move underscores the ongoing tensions between the US and Pakistan over the latter’s military activities and highlights Washington’s determination to disrupt any support for Pakistan’s ballistic missile program.
You may also like to read more about Sanctions on Pakistan and China

Impact on Companies when US Slaps Sanctions

There is a severe impact on businesses when the US slaps sanctions. All property and interests in property of the designated entities that are in the United States or in possession or control of U.S. persons are blocked and must be reported to the Department of Treasury’s Office of Foreign Assets Control (OFAC).

All transactions involving these entities by U.S. persons or within the United States are prohibited unless authorized by OFAC. The ultimate goal of these sanctions is not to punish but to bring about a positive behaviour change, emphasizing the importance of compliance with international norms and regulations.

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