Print

Mail

wiki links

US puts restrictions on high-technology exports to China

The US on Friday put new restrictions on high-technology exports to China and moved to create a pool of so-called "trusted customers" within the Chinese business community who will be rewarded for compliance with US guidelines.

The measures, announced by the US Commerce Department, came amid growing concern that China is using its booming high-technology trade with the US to accelerate a massive military buildup.

The updated export control list that has been under consideration for more than a year covers a total of 20 product categories.

It includes aircraft and aircraft engines, inertial navigation systems, lasers, optical fibers, depleted uranium, underwater cameras and propulsion systems, certain composite materials and telecommunications equipment.

Export of such equipment with potential military applications, which is also known as dual-use technology, requires a US government license.

"The steps we are taking today are good for national security, and for American exporters and jobs," US Commerce Secretary Carlos Gutierrez said in a statement.

At the same time, the US government is introducing a so-called "validated end-user" program, under which certain "trusted customers" in China will be able to receive dual-use items without individual export licenses if they establish their bona fides in Washington.

Officials said these companies must have "a track record of responsible civilian use of US-controlled technology."

To prove it, they will be required to submit information about their ownership structure, transactions, items considered for importation and subsequent transfers plus internal control and record-keeping procedures.

Candidates for "trusted customers" will also have to agree to US government on-site inspections of their facilities.

The applications will be reviewed by a US government committee, officials said.

An initial list of "trusted customers" is expected to be published soon.

"This new rule strikes the right balance in our complex relationship with China," Gutierrez said in his statement.

"It is a common-sense approach that will make it easier for US companies to sell to pre-screened civilian customers in China, while at the same time denying access to US technology that would contribute to China's military," he noted.

The new restrictions on US-China trade are fueled by growing concerns about China's accelerated military modernization.
This story has been viewed 1609 times.