1. New Information on Shenyang Machine Tool Company’s Illicit Sales to North Korea and Russia
- Author:
- David Albright and Spencer Faragasso
- Publication Date:
- 01-2025
- Content Type:
- Special Report
- Institution:
- Institute for Security and International Studies (ISIS)
- Abstract:
- Several years ago, the Institute reported about the relatively large, multinational Chinese company Shenyang Machine Tools Company supplying sophisticated computer numerically controlled (CNC) machine tools, equipped with Western controlled software, to North Korea in violation of UN Security Council (UNSC) sanctions and a supplier country’s trade control laws that banned re-export of this software. New information details the disingenuous way in which the Chinese government investigated this case, indicating nonetheless inadvertently that North Korea received these machine tools, while also demonstrating China’s utter disregard for enforcing UNSC sanctions or its own or others’ export control laws. This case serves as another of the many cases highlighting China as a long-time irresponsible trading partner that responsible companies should avoid when sensitive dual-use goods are involved, lest they be complicit in outfitting North Korea’s, Iran’s, or Russia’s military programs. Today, responsible suppliers are inadvertently facilitating Russia’s prosecution of an illegal war against Ukraine. Given Shenyang Machine Tools Company’s recent exports of goods to Russia with Harmonized Shipments (HS) codes found on the Bureau of Industry and Security (BIS) Common High Priority List (CHPL), this company should be considered for sanctions.
- Topic:
- Sanctions, Trade, Illegal Trade, and Shenyang Machine Tool Company
- Political Geography:
- Russia, China, Europe, Asia, and North Korea