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As China's Military Power Grows, U.S. Eases Restrictions on Strategic Exports to Beijing
Geostrategy-Direct.com ^ | 8 Jul 05 | Geostrategy-Direct.com

Posted on 07/08/2005 8:26:59 PM PDT by datura

The Bush administration acknowledges a major increase in the sale of U.S. components and technology that could bolster China's military. Sources said the administration has reduced export restrictions on numerous high-technology items required by China's military. They cited computer hardware, general-purpose microprocessors and equipment to manufacture semiconductors.

The boom in sales of dual-use technology comes at a time when the Pentagon is sounding the alarm on the rapid growth of China's military and when the U.S. has pressed Israel to significantly reduce military exports to Beijing.

In 2004, U.S.-China trade rose by more than 22 percent and included advanced dual-use components. Officials said the U.S. Commerce Department has approved virtually all applications for export licenses to China.

"Export controls are not impeding overall U.S.-China bilateral trade," said Commerce Undersecretary Peter Lichtenbaum. "The great majority of U.S. exports to China do not require a license, and the great majority of licenses are approved."

In testimony to the U.S.-China Economic and Security Review Commission, Lichtenbaum said the U.S. has been exporting sensitive technologies and commodities to China that could be used for military purposes. The Commerce Department's Bureau of Industry and Security regulates the export of dual-use technologies and goods, identified on the Commerce Control List.

Lichtenbaum told the commission — mandated by Congress to assess the national security implications of U.S.-Chinese trade — that in 2004 his department approved such controlled items as aerospace, semiconductor manufacturing equipment, chemicals, chemical manufacturing equipment and high-performance computers. He said the decisions were based on assessments that China could purchase these products from other countries.

"For example, building state-of-the-art semiconductor plants could increase China's ability to apply this technology and equipment in military programs," Lichtenbaum said on June 23. "Advanced telecommunications equipment — if illegally diverted to military end-users — could provide the Chinese missile, nuclear weapons and other military programs with the means to enhance performance capabilities in military radar applications."

The commission hearing took place as the administration pressed Israel for a memorandum of understanding that would block all military and dual-use exports to China. Officials acknowledged that the administration intends to prevent Israel from selling dual-use equipment approved for U.S. export.

"Currently, our export regime is far more transparent than those of the Israelis," an official said. "We know what we are exporting and we know the end user."

On June 28, an Israeli delegation concluded two days of talks with the Defense Department regarding the proposed MoU. Officials said the two sides did not reach agreement and planned to meet in July in Washington.

Officials said Israel would be asked to commit to the terms of the Wassenaar Arrangement, which regulates the export of dual-use technology and equipment. They said the administration would work with Israel and Wassenaar partners to update arms export control lists and coordinate licensing practices and policies.

Lichtenbaum said U.S. export controls have not significantly affected trade with China. The total value of denied export license applications for China in 2004 was $10.8 million, he said.

Last year, the United States exported $34.7 billion to China, less than 2 percent of which was licensed by the Commerce Department.

Officials said the Pentagon has recommended controls on such U.S. exports to China as munitions power sources, biotechnology and parachutes.

So far, the administration has denied export licenses for dual-use items and technology that could bolster Chinese capabilities in electronic and anti-submarine warfare, intelligence gathering, air power and the production of missiles having a range of 300 kilometers or more.

The administration has also sought to sell nuclear reactors to China in a move opposed by Congress. On June 28, the House, in a 313-114, passed an amendment that would prevent the U.S. Export-Import Bank to loan $5 billion to Westinghouse Electric Company to construct nuclear power plants in China.

"It is not only absurd, but it is dangerous for the taxpayers of this country to be subsidizing the construction of nuclear power plants in China," said Rep. Bernard Sanders, At-Large congressman from Vermont, who sponsored the amendment. "Is it really in the best interest of the United States of America to provide advanced nuclear technology to China?"

The Commerce Department plans to propose what Lichtenbaum termed a new "catch-all" regulation that would require a license for uncontrolled exports that could enhance the Chinese military. At the same time, he warned against any expansion in export controls.

"We should be cautious regarding such an expansion of U.S. export controls, and only consider such an approach when a U.S. industry is both critical to national defense and is threatened specifically by Chinese competition," Lichtenbaum said.


TOPICS: Crime/Corruption; Editorial; Foreign Affairs; Front Page News; Government; War on Terror
KEYWORDS: china; impeachdubya; unitedstates
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Open borders, and further fellating of the ChiComs. This should open some real debate. When I read this, I became quite upset - again - at the actions this administration has taken regarding "foreign policy", especially as of late. It feels like "deja vu, all over again".
1 posted on 07/08/2005 8:27:00 PM PDT by datura
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One can only hope that we are selling them garbage that will either break down, or can be exploited by us somehow.

Given the Administration's track record on many things as of late however, I doubt it.


2 posted on 07/08/2005 8:29:34 PM PDT by oolatec
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To: oolatec

What's it going to take to get an administration that the ChiComs can't buy?


3 posted on 07/08/2005 8:31:46 PM PDT by datura (Molon Labe)
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To: datura
"As China's Military Power Grows, U.S. Eases Restrictions on Strategic Exports to Beijing"

And stops the staging of Israel's Arrow-2 missile defense to open it up to nuclear strikes from Muslim states. ...doesn't make sense. It appears to be a formula all the way around for starting WWIII.
4 posted on 07/08/2005 8:42:24 PM PDT by familyop ("Let us try" sounds better, don't you think? "Essayons" is so...Latin.)
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To: familyop

If it's not planned, then the hypocrisy is sickening.


5 posted on 07/08/2005 8:47:12 PM PDT by datura (Molon Labe)
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To: datura
"The Bush administration acknowledges a major increase in the sale of U.S. components and technology that could bolster China's military. Sources said the administration has reduced export restrictions on numerous high-technology items required by China's military."

WTF over?!
6 posted on 07/08/2005 8:49:13 PM PDT by Texas_Jarhead
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To: datura; TigerLikesRooster

Sad, worrisome.


7 posted on 07/08/2005 8:50:14 PM PDT by John Filson
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To: Texas_Jarhead

Check this little nugget out:

Two new working groups in Congress focus on China

Two new congressional groups have been formed to focus on the growing power of China.
The House has formed the Congressional China Caucus, headed by Virginia Republican J. Randy Forbes.

The caucus will "take a critical look" at Chinese military issues, economy and trade, intellectual property, energy and resources and human rights and religious freedom issues.

The caucus has 28 members including conservative House Armed Services Committee Chairman Rep. Duncan Hunter, Republican from California.

On the other side of the China debate is the U.S.-China Working Group, which has the support of the Chinese government.

The working group was formed last week in the House. It opened with a speech by Chinese ambassador to the United States Zhou Wenzhong. "What is more important is to handle the differences through consultations and dialogue," he said.

Rep. Mark Kirk, Illinois Republican, and Rick Larsen, Washington Democrat lead the working group. It includes more than 20 members who seek to promote diplomatic and economic ties between the United States and China and to increase congressional engagement.


8 posted on 07/08/2005 8:50:16 PM PDT by datura (Molon Labe)
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To: datura
Sorry to be off topic, but India and Pakistan restrictions have been eased as well.
9 posted on 07/08/2005 8:51:37 PM PDT by endthematrix ("an ominous vacancy" fills this space)
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To: endthematrix

I can understand the easing of restrictions on India.


10 posted on 07/08/2005 8:53:28 PM PDT by datura (Molon Labe)
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To: datura
The only reasons that I have tepidly supported The President;

The way he lead us during 911 and the war on terror.

His character.

His genuine support of our troops.

With his sellout in China he is putting our men and women of our military at risk at a future date. I would go as far to say the he will be responsible for deaths of these people. The President is eroding the vary reason for my tepid support. With run-away spending, frightening expansion of the Fed government, lack of leadership on appointments and the wide-open boarders can anyone make a case for my continuing with my tepid support?

11 posted on 07/08/2005 9:01:41 PM PDT by Aquakat
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To: Aquakat

I used to be in your shoes. Now I follow the actions of this administration, not their words.


12 posted on 07/08/2005 9:05:34 PM PDT by datura (Molon Labe)
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To: Aquakat
Check out this post I just put up along this line - more evidence.

http://www.freerepublic.com/focus/news/1439511/posts?page=1

13 posted on 07/08/2005 9:07:18 PM PDT by datura (Molon Labe)
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To: datura
Well, outsourcing manufacturing of military equipment to China is one way to help lower the defense budget.
14 posted on 07/08/2005 9:11:54 PM PDT by fso301
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To: datura
They were both under sanctions and then both releived of those in 2003 due to stand down in increasing tensions.

Back on topic...

"Currently, our export regime is far more transparent than those of the Israelis," an official said. "We know what we are exporting and we know the end user."

The U.S. Department of Commerce reached an agreement with the Ministry of Commerce of the People's Republic of China on procedures to strengthen end-use visit cooperation and help ensure that U.S. exports of controlled dual-use items are being used by their intended recipients for their intended purposes.

U.S.-China end-use visit understanding

15 posted on 07/08/2005 9:14:10 PM PDT by endthematrix ("an ominous vacancy" fills this space)
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To: datura
Check out this post I just put up along this line - more evidence.

WTF

I am starting (never though I would think much less say this) to question the value of all our KIA’s when we are only going to have much much more in the future.

Someone anyone please tell me again why BWB is better than toon or kerry?

16 posted on 07/08/2005 9:19:58 PM PDT by Aquakat
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To: Aquakat

Comforting, isn't it?

I'm deeply concerned about the track our foreign policy has taken.


17 posted on 07/08/2005 9:21:21 PM PDT by datura (Molon Labe)
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To: datura

gotta read it to believe it bump


18 posted on 07/08/2005 9:23:45 PM PDT by rbmillerjr
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To: datura

I'll take Geostrategy-Direct (AKA, WorldTribune, WorldTechTribune,...) with a large grain of salt. It has issued some business-prop in the past--for example, a piece saying that Microsoft Windows was the world's most secure system.

The piece you posted might be a constituent softener to make way for corporates to get what is announced without their having obtained it.

I'm going to look into it and hold the information that will be found for further sightings like this.


19 posted on 07/08/2005 9:27:14 PM PDT by familyop ("Let us try" sounds better, don't you think? "Essayons" is so...Latin.)
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To: Aquakat

I used to be one of the "Bushbots" in the forum. In fact, I even used to say that Bush would turn out to be as great a president as President Reagan. No matter what the decision, I would come out in favor of the administration's position, finding some silver lining somewhere.

And then, something snapped. I started seeing the full depth of what was coming out of DC. That feeling of solid earth beneath my feet went away. It felt like Clinton's third term. Like "We the People" had been sold out AGAIN. And we have.


20 posted on 07/08/2005 9:29:58 PM PDT by datura (Molon Labe)
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