BEIJING -- China North Industries Corporation (NORINCO) rejected once more the U.S. allegations that it is cooperating with Iran in the nuclear sphere adding that the trade ties with Iran was in line with the international rules and regulations.

A NORINCO company spokesman told IRNA correspondent that the United States's allegations reveals the very fact that Washington is after imposing its national laws to other states, IRNA reported.

The Chinese official who identified himself as Lee categorically rejected any cooperation with Tehran on the missile technology.

Lee termed the U.S. allegations on Iran as unsubstantiated and expressed criticism against the U.S. policy.

He further expressed hope that the Bush administration would take steps to discover the realities. The United States on Thursday imposed sanctions on five Chinese firms and a North Korean company for alleged arms sales to Iran which said it could "make a material contribution to weapons of mass destruction or missiles."

The punitive measures, announced by the State Department, were posed on the final day of a visit to Washington by a senior Chinese diplomat, Vice Foreign Minister Wang Yi, who had been meeting with U.S. officials to discuss North Korea and more general non-proliferation issues.

"The penalties were imposed for the transfer to Iran in the first half of 2002 of equipment and technology listed on multilateral export control lists or otherwise having the potential to make a material contribution to weapons of mass destruction or missiles," spokesman Richard Boucher said.

“The sanctions are provided for in the Iran Non-proliferation Act of 2000. Some 15 entities from a number of countries are now subject to U.S. sanctions under that act,” Boucher said.

The exact nature of the items sold was not disclosed.

The penalties have been imposed against the Taian Foreign Trade General Corporation of China, the Zibo Chemical Equipment Plant of China, the Liyang Yunlong Chemical Equipment Group Company of China, China North Industries Corporation (NORINCO) and the China Precision Machinery Import/Export Corporation (CPMIEC).

The North Korean firm was identified as the Changgwang Sinyong Corporation.

All but the Taian Foreign Trade General Corporation were already subject to U.S. sanctions for similar sales. NORINCO, for example, was slapped with sanctions only two months ago for allegedly selling missile technology to Tehran.

China has vehemently protested the imposition of such sanctions in the past and the firms have denied any wrongdoing.

Thursday's sanctions include a ban on any U.S. government contracts with the named companies, a ban on any U.S. assistance to them, a ban on U.S. arms sales to the firms and a ban on U.S. export licenses for the sale of any controlled munitions.

However, the measures, which will remain in place for two years, are unlikely to have a major impact on the firms given the fact that most are already covered by existing penalties and do little business with the United States.

NORINCO, a key supplier of the People's Liberation Army of China, appears to have a visible presence in the U.S. market as an exporter of hunting rifles and other firearms.

The firm has a registered capital of about 30 billion dollars, is involved in more than 100 joint ventures around the world and, in addition to weapons, sells high technology products, chemicals and construction machinery.