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. However, the U.S. also concludes that the Chinese government was not involved in the transfers. China s record is clearly mixed.
Engagement is necessary to sustain progress made, and to address areas of continuing concern.
Questions remain about contacts between Chinese entities and elements associated with Pakistan s nuclear weapons program. September Prior to Clinton-Jiang summit, China upgrades its nuclear export control procedures, implementing regulations that require all future transfers of nuclear material and equipment to first receive the approval of the State Council. Furthermore, nuclear exports would be restricted to IAEA inspected facilities. At Clinton-Jiang summit, China confidentially agrees to halt all future aid to Iranian nuclear programs. China officially joins Zangger Committee.