On April 28, 2014, the United States District Court in the Southern District of New York filed a grand jury indictment against Chinese national Li Fang-wei, aka, Karl Li, owner and operator of the previously indicted company Limmt and its many associated trading companies and aliases. Li is suspected of selling to Iran controlled and dual-use missile and nuclear related goods and materials. The indictment alleges that over many years, his sales contributed to the substantial outfitting of the Iranian ballistic missile program. He is accused of seeking and selling dual-use goods made in the United States on behalf of Iran and other countries and of using the U.S. financial system to make and receive illegal payments. Li is a “long-time supplier to Iran’s Defense Industries Organization and Aerospace Industries Organization.”
Leaked U.S. State Department cables dating back to 2007 show intensive, high-level U.S. efforts to convince China to take action to close down Li’s operations. These diplomatic efforts failed as reports have surfaced that Li is protected by senior Chinese officials. Obviously frustrated by China’s refusal to rein in Li, the State Department has offered a $5 million anti-transnational crime reward for information leading to his arrest. The U.S. government should also designate China a “destination of diversion concern” under U.S. sanctions legislation. Imposing additional licensing conditions on certain U.S. dual-use goods bound for China would help ensure the goods do not end up in Iran (or North Korea for that matter) and would send a stronger message about the United States’ unwillingness to tolerate China’s support for this ongoing criminal activity, which contributes importantly to Iran’s missile and nuclear proliferation.
Read the full case study at: Serial Proliferator Karl Li: China’s Continued Refusal to Act
Iran Missile Milestones: 1985-2014 | Iran Watch
1987: China sells Iran “Silkworm” anti-ship cruise missiles.
1988: China agrees to provide Iran with equipment and know-how to develop and test medium-range ballistic missiles.
1990: China and Iran reportedly sign a 10-year agreement for scientific cooperation and the transfer of military technology.Sponsored Ads
1996: U.S. Rep. Benjamin Gilman (R-NY) states during a Congressional hearing on China’s military sales to Iran that U.S. intelligence believes China has “delivered dozens, perhaps hundreds, of missile guidance systems and computerized tools to Iran.”
August 2000: In its report on worldwide proliferation, the CIA says Iran has made considerable progress in the development of ballistic missiles, and that entities in Russia, North Korea, and China continued to supply the largest amount of ballistic missile-related goods, technology, and expertise to Iran.
November 2003: In its report to Congress on worldwide proliferation, the CIA says that Iran’s ballistic missile inventory is among the largest in the Middle East and that entities in the former Soviet Union, North Korea, and China have helped Iran progress in ballistic missile production.
June 2006: Pursuant to Executive Order 13382, the U.S. Department of the Treasury imposes financial sanctions on four Chinese companies, Beijing Alite Technologies Company Ltd. (ALCO), LIMMT Economic and Trade Company, Ltd., China Great Wall Industry Corporation (CGWIC), and China National Precision Machinery Import/Export Corporation (CPMIEC), and on the U.S.-based CGWIC representative, G.W. Aerospace, Inc., for supplying Iran with missile-related and dual-use components.
China aided Iran’s missile, nuclear programs | Washington Free Beacon
The 95-page report, “China-Iran: A Limited Partnership,” was produced for the commission by the intelligence contractor CENTRA Technology and dated October 2012.
China provided nuclear assistance to Iran in the 1990s and promised to halt its support in 1997. However, the report said there are indications Beijing has continued to provide covert assistance to Iranian nuclear programs.
On missile experts, the report said, “China has continued measured support to Iran’s defense programs.”
Recent transfers include several export versions of Chinese missiles, including C-705 anti-ship cruise missiles.