China North Industries Group Corporation
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China North Industries Corporation (NORINCO)
Listed by the Japanese government in 2005 as an entity of concern for chemical weapon and missile proliferation; listed as an entity of concern for arms proliferation in an early warning document distributed by the German government to industry in July 2005; sanctioned (along with all successors, sub-units, and subsidiaries) on December 23, 2005 by the U.S. Department of State under the Iran Nonproliferation Act of 2000, for two years as follows: U.S. government barred from procuring from, entering into contracts with, or providing assistance to the entity, U.S. government sales to the entity of any item on the United States Munitions List prohibited, sales to the entity of any defense articles, defense services, or design and construction services under the U.S. Arms Export Control Act terminated, no new individual licenses granted for the transfer to the entity of items the export of which is controlled under the U.S. Export Administration Act of 1979 or the U.S. Export Administration Regulations, and any existing such licenses suspended; sanctioned (with all successors, sub-units, or subsidiaries) by the United States on December 27, 2004, on September 23, 2004 and April 1, 2004 under the Iran Nonproliferation Act of 2000, for transferring to Iran equipment and/or technology of proliferation significance since January 1, 1999; sanctioned by the U.S. Department of State in September 2003 for engaging in missile technology proliferation activities; sanctioned by the United States in June 2003 for engaging in proliferation activities with Iran; forbidden by the U.S. Department of State on May 9, 2003 from exporting to the United States for two years, as a penalty for engaging in missile technology proliferation activities with Iran, allegedly by selling missile technology to the Shahid Hemmat Industrial Group (a.k.a. Shig), Iran's government agency in charge of developing and producing ballistic missiles; according to the U.S. government's Iraq Survey Group (ISG), was approached by Saddam Hussein's Iraq in the fall of 2000 as a potential supplier of 200 gyros suitable for use in Russian and Chinese cruise missiles, and of machine tools with missile applications (no delivery was established); according to the ISG, was in contact with Iraq several times between 2000 and 2002; documents recovered by the ISG indicate that NORINCO agreed to continue dealing with Iraq in spite of a debit exceeding $3.06 billion, but specified that Beijing would not be informed; according to the ISG, was promised payment by Iraq with crude oil and petroleum products through the Iraqi front company Al Basha'ir; employees indicted in 1996 by the United States for illegally conspiring to import 2,000 fully automatic AK-47 assault rifles into California intended for street gangs; develops and manufactures armored fighting vehicles, howitzers, mortars, rocket launchers, anti-aircraft weapons, anti-tank missile systems, small arms, ammunition, radars, sighting and aiming systems, high-performance engines, nuclear/biological/chemical warfare protection systems, sensor-fused cluster bombs, optical-electronic products, explosives and blast materials, light industrial products, fire-fighting equipment, metal and non-metal materials; supplies Pakistan's Civil Works Organization, Pakistan Ordnance Factories (POF) Gadwal, and Heavy Industries Taxila (HIT); reportedly has developed a long range artillery "supergun" with a range of 360 kilometers; established in 1980 with the approval of the State Council of China; reportedly shipped metals and chemicals used in missile production to the Shahid Bagheri Industrial Group in Iran; overseen by the Commission on Science, Technology and Industry for National Defense (COSTIND); a subsidiary of China North Industries Group Corporation (CNGC).
China North Industries Group Corporate (CNGC). October 2014.
THIS WORKING PAPER ATTEMPTS TO UNPICK THE STRUCTURE OF CHINA NORTH INDUSTRIES GROUP CORPORATION (CNGC), ONE OF CHINA’S LARGEST STATE-OWNED COMPANIES. The International Peace Information Service (IPIS) and the Omega Research Foundation (Omega) have undertaken a comprehensive review of one of China’s largest state-owned companies. Norinco – known formally as China North Industries Group Corporation (CNGC) was established in 1999 and consists of at least 46 member units which then have several subordinate companies, joint ventures and associate companies. CNGC’s main purpose is to research, develop and manufacture weapons and military equipment for the Chinese armed forces. To accomplish this primary task CNGC combines military research objectives with civil development and production enterprises and often the two are difficult to separate. CNGC is also involved in other industries such as mining and petroleum (often overseas) as well as the associated processing industries – which provide raw materials for CNGC and other Chinese companies as well as giving China and CNGC access to international markets. Over the decades CNGC and many of its subsidiaries have established joint ventures or licensed manufacturing agreements with various Western companies to manufacture civilian products which have then been incorporated in the military and/or law enforcement products of CNGC. This is of particular concern to the USA and the EU, both who both brought in arms embargoes against China following the 1999 Tiananmen Square massacre. We believe that this review shows the complex interaction between the civilian and military sections with supposedly civilian enterprises manufacturing equipment or components for the military, or providing them with raw materials. We hope this will make policy makers and export control departments more aware of the issue of exporting equipment and technology to China. Our research has uncovered several subsidiaries that we previously thought had no link to CNGC. However, the list is still incomplete and we would welcome any additions or clarifications you may have.
General situation
According to the strategic plan of China North Industries Group Corporation (hereinafter referred to as “CNGC”) “Taking professional technology as foundation and taking technological renovation ability as core to promote the market position and industry competitiveness and build a domestically leading and internationally reputed internationalized corporation” and follow the development trend of domestic and international engineering survey design industry and meet the requirement of industrialization development of CNGC, China Wuzhou Engineering Corporation Ltd.(CWEC), the subsidiary group of engineering service industry, is regrouped by the former member units of CNGC Wuzhou Engineering Design and Research Institute and CNGC Survey Design and Research Institute. The registered capital is 114,750,000 Yuan. There are 1200 staffs in the corporation. Core mission: by taking “Ordnance oriented, market based, military-civilian integration, innovation & development” as operation idea, the CWEC will serve the whole national economy based on ordnance system, provide whole-process and integrated services for engineering construction so as to promote the core competitiveness and market influence of the corporation . Development orientation: Take serving the national defence industry construction and national economic construction as start point to fully support military and civilian products development of CNGC. We shall work actively to open both domestic and overseas markets, by taking project management and total engineering contracting as key points; taking the engineering design of industries involving explosives, ammunition, civilian blasting equipment, fine chemicals , tobacco, environment sanitation & energy resources, municipal & civilian architecture, optical-mechanical-electrical technology; the survey technologies of the fields like railway & road, nuclear power & thermal power, petroleum chemical industry, information industry, geological disaster and environment improvement and other emerging fields as main operations, so as to build an international engineering corporation which integrates the whole process of engineering construction of consulting, survey, design, supervision, project management, inspection & monitoring, total engineering contracting and engineering service of investment & financing. Overall development philosophy: By means of taking Scientific View of Development as guidance, taking market as orientation, taking benefit as center and taking intensive operation as measure to promote the market position and industry position of the corporation, optimize resource allocation and cultivate core competitiveness; further adjust business structure, accelerate the development step of total engineering contracting, push on the science and technology innovation, improve development quality and sustained development ability, make effort to establish harmonious corporation, build the well-known brand of survey and design corporation, push on the healthy and harmonious development of survey and design industry of ordnance project on the new start point. By taking the above measures, the corporation will be built into an international engineering corporation that can satisfy modern corporation system with core competitiveness and scientific innovation ability. China Wuzhou Engineering Corporation Ltd. will follow the corporation spirit of CNGC: Innovation, Dedication, Reality and Opening, to contribute to the construction of hi-tech and international ordnance industry and the establishment of an aspiring, responsible and respectable national strategic team; we shall make our effort to provide whole process engineering construction services for the construction of international top-ranking defence group of CNGC and constructions of national important industry bases of heavy equipment, special chemical engineering, photoelectric information and so on.
Knowledge Graph
Examples
1 Norinco is a subsidiary of state-owned China North Industries Group Corporation (“CNGC”), involved in the development and export of compressed natural gas (CNG) vehicles and engines.
2 The China North Industries Group Corporation (CNGC) main business is supplying products for the Chinese military.
3 This working paper attempts to unpick the structure of China North Industries Group Corporation (CNGC), one of China's largest state-owned companies.