Thread: US to revise laws to boost high-tech trade with China

US to revise laws to boost high-tech trade with China
Jun 09 8:32 PM US/Eastern
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The United States said it would revise laws to facilitate export of sensitive high technology equipment to China under a new policy designed to prevent such products from being used for military purposes.

The new policy will spare the need for US exporters in critical sectors such as semiconductor equipment and electronics to apply for licenses for sales to companies in China.

It will also ensure closer scrutiny of key technology purchasers in China, a senior US Department of Commerce official said.

The changes to Washington's so-called China Export Control Policy will achieve "growth in civilian high tech trade and enhanced security," Undersecretary of commerce for industry and security David McCormick said.

"These changes to technology export controls for China are a 'win-win,'" he told a forum of the Washington-based Center for Strategic and International Studies.

But McCormick stressed that Chinese companies must demonstrate an established record of nonproliferation and "responsible civilian use" of US high-tech products if they wanted to be importers under the new policy.

"This process will require unprecedented openness and cooperation on the part of Chinese companies. And it will create incentives for them to demonstrate good faith and sound practices.

"In addition, it will allow US government officials to focus on more complex cases with more severe implications for American security," he said.

The new policy, McCormick emphasized, would prevent exports of technologies for incorporation into Chinese weapons systems.

For example, he said, US policy should facilitate sales of American-made semiconductors to companies in China for use in stereos or a child's Game Boy, but not for advanced missile systems or submarines.

Similarly, the cutting edge composite technology that helps China build commercial aircraft must not also find its way into the Super-7 next generation fighter aircraft, he said.

The United States has been worried that China would use imported sensitive high technology products in its rapidly expanding military modernization program, being implemented under a defense budget with little transparency.

A recent study by the RAND corporation, a US non-profit institution, said China wanted to strengthen its military capabilities by acquiring advanced dual use technologies and incorporating them into defense systems, noting that Beijing's military budget has risen faster than its overall economy.

US high-tech exports to China last year reached more than 12 billion dollars and the new licensing flexibility would further open up "potentially hundreds of millions of dollars" worth of American sales to Chinese companies, McCormick said.

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"In addition, it will allow US government officials to focus on more complex cases with more severe implications for American security," he said.

Isn't this the same thing they say about ignoring the "good-hearted folks who only come here to do jobs Americans won't do" so we can concentrate on the real bad guys?

This stuff is becoming alarming.

That's Bad News we mine as well just sell Trident Mirv Missiles to them out in the open