September Following U.N. embargo on Iraq, China is suspected of shipping lithium hydride to the country. The chemical is an ingredient in missile fuel, and also has other weapons uses. April Discovery of Algerian Ain Oussera reactor publicized. U.S. announces that it has discovered the transfer of an M-11 missile from China to Pakistan. Category II sanctions on China and Pakistan for missile technology transfers.
China denies that it transferred missiles to Pakistan.
In a letter to the IAEA, China agrees to provide the agency with information on nuclear exports to other states. January U.S. officials charge China with transferring chemicals used in making missile fuel to Syria. February Algeria agrees to place Chinese-supplied reactor under IAEA safeguards. November China reportedly transfers 34 M-11 missiles to Pakistan. The missiles are believed to be stored in canisters at Sargodha Air Force Base near Lahore.