The Bush administration on Saturday imposed trade sanctions on a major Chinese arms manufacturer after failing to persuade the Chinese government to stop exports of missile technology to Pakistan.
A senior State Department official said that the decision came as China continued to break international guidelines designed to control sales of missile parts and technology that are essential for weapons that can carry nuclear warheads.
Secretary of State Colin Powell raised the issue in talks with the Chinese leadership in July. His concerns were at the center of detailed negotiations in Beijing late last month between a State Department delegation and Chinese officials.
Last week, Under Secretary of State John Bolton called on the charge d'affaires of the Chinese Embassy and told him it was still possible to avoid sanctions if the Chinese took some action against the exporters.
The Chinese manufacturer, China Metallurgical Equipment Corp, a private corporation with close ties to the Beijing government, had transferred missile parts and technology, not whole missiles, the administration's announcement said.
It appears that the sanctions would not cause a major rift, and it is still possible, the senior official said, that the sanctions would be waived later.
The sanctions, which prohibit US companies from doing business with the Chinese company, are likely to be more symbolic than substantive in the broader trading relationship.
"The goal is to stop their missile cooperation with Pakistan, and if they stop, we could waive the sanctions," the senior official said on Saturday.
Sanctions were also being placed on the organization in Pakistan, the National Development Complex, that received the Chinese technology.
As the administration has tried to deal with the Chinese sales of weapons technology in the last few months, it has also been debating whether to suspend issuing licenses for US telecommunication companies that place their satellites on Chinese rockets.
US aerospace companies are pushing the Bush administration to allow China to launch American-made satellites or satellites containing American parts.
Any such launch requires a presidential waiver. Former president Bill Clinton granted numerous such waivers, in part, to reward China for curbing its sales of missile-related technology.
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