A bipartisan U.S. congressional advisory panel says Chinese firms are supplying dual-use items to North Korea that can be used for missile-related programs.

According to the annual report by the U.S.-China Economic and Security Review Commission, China generally accepts without question or skepticism end-use guarantees from North Korea. That enables China to sell arms to North Korea while complying with China's export control requirements for such sales.

The report said such a practice could result in the transfer of weapons or technology to North Korea that could destabilize the military balance on the Korean Peninsula and further entrench that regime's dictatorship.

The report also cited that Beijing has yet to implement an export ban of luxury items to Pyongyang, a key sanction imposed under a U.S. resolution on North Korea's nuclear test.

According to the report, Beijing's stance toward the six-way nuclear talks, is a "risk-aversive strategy that appears to place a greater value on maintaining stability on the Korean Peninsula than on aggressively pursuing denuclearization.”

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