WASHINGTON, Jan 24: The United States said on Thursday it had slapped sanctions on three Chinese entities it accused of supplying Iran with materials used in the manufacture of chemical and biological weapons.

The announcement, less than a month before President George W. Bush is due in Beijing for a summit with President Jiang Zemin, threw the spotlight squarely back on China’s proliferation record — a highly inflammatory issue in Sino-US relations.

State Department spokesman Richard Boucher said restrictions were placed on Liyang Chemical Equipment company, the China Machinery and Electric Equipment Import and Export Company, and an individual named Q.C. Chen.

“The penalties were imposed for the transfer to Iran of equipment and technology that’s used for the manufacture of chemical and biological weapons; equipment that’s controlled under what’s called the Australia Group,” he said.

The Australia Group is a 34-nation informal agreement designed to ensure that the export of certain chemicals does not contribute to the spread of chemical weapons. The United States is a participant in the group — China and Iran are not.

Sanctions were imposed under the Iran Nonproliferation Act of 2000, US legislation which prohibits the sale of chemical and biological weapons components and missiles and missile technology to Iran.

They were imposed on January 16, though the measure was first announced on Thursday, in the Federal Register, a government gazette.

The restrictions, which will be in effect for two years, prohibit any US government contracts with the entities and bar them from purchasing any defence items from the United States.—AFP