US fines Chinese firm for re-sales to Pakistan nuclear plant

Published: December 4, 2012
Chinese firm admits to selling coatings for Pakistan's Chashma II nuclear powered plant. PHOTO: FILE

Chinese firm admits to selling coatings for Pakistan's Chashma II nuclear powered plant. PHOTO: FILE

WASHINGTON: The US on Monday fined a Chinese state-owned company $3 million after it agreed to plead guilty to criminal charges for exporting US-made coatings to a Pakistan nuclear plant against US restrictions.

China Nuclear Industry Huaxing Construction Co. was charged with conspiring with the China subsidiary of the US company PPG Industries to deliver high-performance epoxy coatings to the Pakistan nuclear power plant without obtaining permission.

The Chashma II plant, under construction at the time the shipments were made, 2006-07, was on the US Treasury’s “Entity List” subjecting it to specific license requirements for exporting certain items to it.

PPG and its China subsidiary, PPG Paints Trading (Shanghai) Co, were already fined $3.75 million two years ago in the case.

“Huaxing – the PRC-corporate entity that bought the coatings for application in the Pakistani reactor – has accepted responsibility for its role in the crime,” said US Attorney Ronald Machen.

“The lesson here is clear: we will pursue violations of US export controls wherever they occur in the world, we will prosecute both individuals and corporate wrong-doers, and a corporation’s status as foreign-owned, or even state-owned, will not bar enforcement of those laws in US courts.”

The Chashma nuclear facility, in Punjab province, is controlled by the Pakistan Atomic Energy Commission, which was placed under US export restrictions in 1998 after Pakistan successfully detonated a nuclear bomb for the first time.

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Reader Comments (14)

  • Vikas
    Dec 4, 2012 - 1:45AM

    Why they were allowed to let go with so little fine.


  • What
    Dec 4, 2012 - 2:43AM

    no this is a lie, US is our best friend! they can’t do this.


  • Sexton Blake
    Dec 4, 2012 - 6:54AM

    We all know that America has been the world bully for some time, but a $6.75 million punishment for selling a few cans of paint, to someone the US disapproves of, is somewhat over the top. One wonders where the world will finish up when countries take on such dictatorial powers that they can make it a crime to sell paint. But then, we know it was not America’s idea. America is just a puppet, without pride, whose strings are being manipulated, from the top, by a very small country.


  • ger
    Dec 4, 2012 - 9:19AM

    but china is your so called friend and…….


  • hasan
    Dec 4, 2012 - 9:26AM

    Good move.. either we should have the capability to build these ourselves, else dont polish chinese shoes. …


  • anwar
    Dec 4, 2012 - 9:48AM

    Con game USA style..


  • Ehtisham Ashai
    Dec 4, 2012 - 9:57AM

    What is so special about Epoxy Coatings. These can easily be maufactured in Pakistan. Pakistan has the reactors to cook the resins and all other basic raw materials to make the coating.

    Why even import is beyond me.



  • Jeddy
    Dec 4, 2012 - 10:05AM

    US alienating both Pakistan and China.


  • Clear Black Bag
    Dec 4, 2012 - 10:07AM

    Methinks even I am sure that US is living in fool’s paradise and is considering China like Pakistan which can/shall be pressurized easily.This is why US is doing so but the ground realities are different from the facts and US already has been requested for loans from China to secure its economy from bankruptcy most especially importantly when US was facing severe economic crises……
    US leaders China is not Pakistan and you can never treat China as you treat Pakistan because China doesn’t depend upon US’ aid….Therefore forget it that you shall pressurize China and fulfill your this desire of getting $3.75m……


    Dec 4, 2012 - 10:24AM

    You must be kidding me, check the list of things owned by China in US….LOL.


  • Cautious
    Dec 4, 2012 - 7:33PM

    @Clear Black Bag. Suggest you re-read the article. The USA actually fined the offending company (owned by China) so your argument that the USA would never dare to fine China is nonsense. Further – the USA doesn’t beg for loans from China – the USA sells bonds on the open market and there is such a high demand for those bonds that the USA is only required to pay a nominal rate of interest. Anti American blather maybe popular in Pakistan but it’s still blather.


  • Sexton Blake
    Dec 4, 2012 - 11:57PM

    Dear Cautious,
    The US debt level is so high that every country in the world is concerned, and is the main reason for the price hike in gold, and why many countries, including China, are moving away from US dollars. At the latest count US National Debt is rapidly approaching $17 trillion with no hope of paying it back. US total debt is almost $59 trillion, and total debt per US family is $705,000. These figures may not bother you, but they do bother anybody with the slightest degree of economic sanity, which China certainly has. I tend to agree with Clear Black Bag, who raised some good points. America in its arrogance is treading on a very dangerous path, making new rules up as it goes along, and needs to treat China carefully.


  • Clear Black Bag
    Dec 5, 2012 - 11:47AM

    Hope Sexton Blake’s comment against your comment has to be good enough and satisfactory and at least now you must have to know the real and actual economic conditions and facts of USA….And I totally agree with Sexton Blake’s comment here….


  • Manoman Singh
    Dec 6, 2012 - 6:37PM


    And China is our “all-weather-friend”. They simply can’t do this to China.


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