Norinco

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China North Industries Corporation (NORINCO)
Type Public
Industry engineering, contracting, automobiles, firearms
Founded 1980
Headquarters Beijing, China
Area served Worldwide
Revenue decreaseRMB 103,740,000 (Jan-08)[1]
Operating income decreaseRMB -2,520,000 (Jan-08)[1]
Net income decreaseRMB -4,640,000 (Jan-08)[1]
Total assets decreaseRMB 1,123,700,000 (Jan-08)[2]
Employees 456,000[3]
Website http://www.norinco.com

The China North Industries Corporation (Chinese: 北方工业 or 北方工業; pinyin: Běifāng Gōngyè; literally "North Industries"), official English name Norinco, manufactures vehicles (trucks, cars and motorcycles), machinery, optical-electronic products, oil field equipment, chemicals, light industrial products, explosives and blast materials, civil and military firearms and ammunition, etc. Norinco is also involved in domestic civil construction projects.

Norinco is also known outside of China for its high-tech defense products, some of which are adaptations of Soviet equipment. Norinco produces precision strike systems, amphibious assault weapons and equipment, long-range suppression weapon systems, anti-aircraft & anti-missile systems, information & night vision products, high-effect destruction systems,[4] fuel air bombs, anti-terrorism and anti-riot equipment and small arms.

Contents

[edit] History

Norinco was established in 1980 with the approval of the State Council of China, and is overseen by the Commission of Science, Technology and Industry for National Defense (COSTIND). According to the congressional testimony of Gary Milhollin of the Wisconsin Project on Nuclear Arms Control in 1997, Norinco subsidiaries in the U.S. include: Beta Chemical, Beta First, Beta Lighting, Beta Unitex, China Sports (California), Forte Lighting, Larin, NIC International (New Jersey).[5][6]

On February 25th of 2011, Norinco celebrated it's 30th Anniversary since its founding in the Great Hall of the People. People in attendance included high ranking leaders in of the CCP and the PLA, former party first secretary Zhang Junjiu, China South Industries Group Corporation CEO Xu Bin, the Bank of China chairman Xiao Gang, as well as a diplomatic envoy from Pakistan.[7]

[edit] Controversies in the United States

Importations of most Norinco firearms and ammunition into the United States were blocked during the Clinton Administration in 1993 under new trade rules when China's Most Favored Nation status was renewed. Concerns about their use by criminals in inner cities was the main reason put forward for the prohibition. The prohibition did not apply to sporting shotguns or shotgun ammunition however.

In 1994, some employees of Norinco came under federal investigation from both the FBI as well as the ATF after a successful sting dubbed "Operation Dragon Fire." In May 1996, in what was called "the largest seizure of fully operational automatic weapons in U.S. history,"[8] 14 individuals and an Atlanta, Georgia company were indicted for the unlicensed importation and sale of 2,000 Type 56's into the United States. U.S. Customs agents posing as arms traffickers convinced a group of Chinese arms dealers, including three Norinco representatives, that they were in the market to buy guns for drug rings and street gangs.[9] "The defendants offered the government undercover agents more sophisticated weapons, including hand-held rocket launchers, mortars, anti-aircraft missiles, silenced machine guns and even tanks," said Wayne Yamashita of the U.S. Customs Service.[10] The Customs Service discovered during the investigation that these weapons were bound for Oakland, California street gangs.[11] According to an affidavit signed by two of the undercover agents involved in the investigation, representatives from Norinco offered to sell urban gangs shoulder-held missile launchers capable of downing a large commercial airliner.

In August 2003, the Bush Administration imposed sanctions on Norinco for allegedly selling missile-related goods to Iran.[11] While not formally joining the multinational effort to restrict the proliferation of missiles, China did promise in 2000, not to assist in any way the development by other countries of MTCR-class missile technology. Neither the Chinese government nor Norinco has denied doing business with Iranian companies, although they did deny that it was for missile related purposes at the Shahid Hemmat Industrial Group, Iran's key manufacturer of ballistic and non ballistic missiles.[12] Norinco has called the sanctions "groundless and unjustified" and "entirely unreasonable."[13]

These sanctions led to a prohibition on imports into the US of the remaining types of firearms and ammunition not covered by the 1993 ban.

[edit] Controversies in Pakistan

In April, 2011 Norinco announced it had been awarded a megaproject to develop a mass transit system in the provincial headquarters of the Punjab province in Pakistan. Although the deal led to severe criticism from civil society, the project is currently underway and being financed though expensive loans from the Export-Import Bank of China.[14]

In June 2011, Norinco sent a letter of demands to the Government of the Punjab which threatened to derail the Mass Transit System and expose the true intentions of the company in Pakistan. According to the latest reports, the Government of Punjab is not willing to engage Norinco for the task due to the extortionist demands being made.[15]

[edit] 2011 meetings with the Gadhafi Regime

Documents obtained in late August 2011 by the Libyan rebels in Tripoli describe meetings between Muammar Gaddafi's security officials and Norinco officials in Beijing. The meetings discussed arms sales worth $200 million (USD) with an interest in shipping them through Algeria and South Africa. These meetings were held in late July as the Gaddafi regime was crumbling, and the arms sales were in direct violation of UN sanctions against the regime and UN measures to protect civilians.[16] On September 5, the Chinese Foreign Ministry released a statement admitting the meetings had occurred, but the ministry denied that Chinese government officials knew about the talks or that arms had been sold.[17]

[edit] Some examples of megaprojects and weapons manufactured by Norinco

[edit] See also

[edit] References

  1. ^ a b c http://investing.businessweek.com/businessweek/research/stocks/financials/financials.asp?symbol=000065.SZ&dataset=incomeStatement&period=A&currency=native
  2. ^ http://investing.businessweek.com/businessweek/research/stocks/financials/financials.asp?symbol=000065.SZ&dataset=balanceSheet&period=A&currency=native
  3. ^ http://www.globalsecurity.org/military/world/china/norinco.htm
  4. ^ "Norinco Defense." Norinco.com
  5. ^ [1], http://www.iranwatch.org/Gary/sfrc-milhollintestimony-050697.htm
  6. ^ [2], http://www.iranwatch.org/government/US/Congress/Hearings/sfrc-050697/us-congress-sfrc-transcript-050697.htm#Milhollin
  7. ^ [3], http://www.norinco.com/c1024/english/newscenter/content_108.html
  8. ^ Anatomy Of A Sting - Time
  9. ^ Court TV Library
  10. ^ CNN - Feds seize 'incredible arsenal' - May 23, 1996
  11. ^ a b Washington Times - Chinese firm hit with U.S. sanctions
  12. ^ [4][5] [6] [7]
  13. ^ [8][9]
  14. ^ [10]
  15. ^ [11]
  16. ^ [12], http://www.theglobeandmail.com/news/world/africa-mideast/china-offered-gadhafi-huge-stockpiles-of-arms-libyan-memos/article2152875/page1/
  17. ^ [13], http://www.nytimes.com/2011/09/06/world/asia/06china.html
  18. ^ AK-47.net: Norinco MAK-90 AK

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