U.S. sanctions Chinese firm for missile aid to Pakistan

WASHINGTON Ñ The United States has decided to impose sanctions on China for continued missile technology transfer to Pakistan.

The State Department said the China Metallurgical Equipment Corp. would be banned from dealing with the U.S. government or companies. China Metallurgical was cited for transferring missile technology to Pakistan over the last year despite a pledge by Beijing to end exports barred under the Missile Technology Control Regime.

The technology, officials said, would allow Pakistani missiles to contain nuclear warheads. China Metallurgical transferred the technology to the National Development Complex of Pakistan. A formal announcement of sanctions is expected this week and would ban U.S. companies from issuing licenses to launch satellites on Chinese rockets or provide technology to China's satellite industry.

Officials said the Bush administration decided to impose sanctions after talks last month in Beijing failed. The Pakistani organization will also face sanctions, the officials said.

China Metallurgical is also said to be under contract to Middle East countries. They include providing help to the missile programs of Iran and Syria. The company has denied the U.S. accusation.

At the same time, the Pentagon announced the successful test of a booster rocket meant for the new U.S. missile defense umbrella. The rocket was launched from Vandenberg Air Force Base in California on early Friday in its first test.

The next test of the missile defense system is scheduled for October. Meanwhile, the Pentagon has recruited independent researchers to help develop the system.

Last month, New Mexico State University obtained a contract for research, development and engineering support in the areas of information operations vulnerability/survivability assessments, air and missile defense systems service analysis. The contract was part of a $180 million project over five years.