U.S. and Chinese officials held productive talks on American concerns over Chinese compliance with an agreement on curbing the spread of nuclear technology, the State Department said Friday night.

Undersecretary of State John Bolton conducted the discussions with Chinese Vice Foreign Minister Wang Guangya.

Bolton reiterated the emphasis on nonproliferation as a critical aspect of the war on terrorism, the State Department said.

The two sides also discussed a broader range of arms control issues. The Chinese delegation also met with other officials to discuss regional and counterterrorism issues.

Three months ago, the administration accused the China Metallurgical Equipment Corp., a government-owned engineering company, of supplying missile-related parts to Pakistan in violation of a November 2000 Sino-American agreement.

For two years, the company will be denied all new U.S. licenses for production of electronics and military equipment and for material used to launch commercial satellites. China has denied the allegation.