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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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To: Aquakat
I think I am going to regret this, but, ok I bite who/what?

I've said facetiously on this forum before that the stories of alien infiltration of all the worlds’ governments are true. Sadly the more illogical the world gets, the more possible it seems. Is it just politically-correct liberalism that is making us act stupidly suicidal in the face of China, Islamic terrorists, and Illegal aliens, or is there something more sinister at work?

41 posted on 07/09/2005 1:06:50 PM PDT by rmmcdaniell
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To: Aquakat

You know...I am not sure exacty what it is. People seem to have a lot of different Ideas. The only thing I know is that it is there because its effects are obvious. In my opinion it is demonic and is setting us up for the war against God. Here is a thread with many different views that just started over at TB2000. People are also asking...What is it? Would you have ever imagined that Billy Grahm would stand up and endorse Bill and Hillary Clinton ?

http://www.timebomb2000.com/vb/showthread.php?s=004b28552275e793689eb72380fefbc7&t=157940


42 posted on 07/09/2005 6:09:54 PM PDT by Revel
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To: datura
"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

Bump

43 posted on 07/09/2005 7:24:41 PM PDT by A. Pole (For today's Democrats abortion and "gay marriage" are more important that the whole New Deal legacy.)
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To: fso301
Well, outsourcing manufacturing of military equipment to China is one way to help lower the defense budget.

Probably it would.

44 posted on 07/09/2005 7:25:29 PM PDT by A. Pole (For today's Democrats abortion and "gay marriage" are more important that the whole New Deal legacy.)
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