September China suspends sale of two 300 Mwe reactors to Iran. November China releases a White Paper on Arms Control and Disarmament. The paper goes on to describe China s support of a number of non-proliferation agreements. Both Pakistan and China deny the sale took place. March Pakistan reports that it has completed work on a research reactor at Khushab, another facility outside of IAEA safeguards.
China also agrees to engage in dialogue to improve export controls.
June China and Algeria sign a nuclear co-operation agreement. China is believed to be involved in the construction of the Algerian Center of Nuclear Energy Research, a facility that will be placed under IAEA safeguards. August Reports surface that China is assisting Pakistan in construction of Rawalpindi missile manufacturing facility, and that the China Precision Engineering Institute is planning to sell missile guidance technology to Iran. China and the United States share a common interest in nonproliferation and only through dialogue and discussion will we be able to narrow our differences in this area. May U.S. places sanctions on seven Chinese business entities for assisting Iran s chemical weapons programs.