Wednesday, February 10, 2010   


US relents on exports curbs list

Mark Drajem

Saturday, May 06, 2006

The United States is planning to scale back a proposal to toughen restrictions on technology exports to China after encountering opposition from US firms doing business in the mainland.

An original list of hundreds of exports that would be more closely regulated - including aircraft parts, computer chips and machine tools - has now been shortened to only 46 items, according to a revised draft of the proposed regulations.

Concerned that China is using US civilian technology to expand its military know-how, the Bush administration last year floated plans to limit technology sales to China by requiring special licenses to export some items, background checks on customers and broader oversight of transactions.

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The scaling back is a partial concession to exporters such as Intel and Boeing, which opposed the original proposal because they rely on Asia as a growth engine for sales and have invested heavily in assembly, research and testing operations in China.

"It's better than what was floated a year ago," said Michael Burton, a partner at the Washington law firm of Miller & Chevalier who represents companies applying for export licenses.

The computer, aviation and machinery industries lobbied against last year's plan because compliance would have hurt their ability to expand business in China.

Among items that would be subject to new export-licensing requirements are nuclear materials, lithography equipment, digital-radio receivers, cameras, radar technology and rocket- propulsion systems, according to the draft document.

Some of the items taken off the list include aircraft engines, bayonets, bearings, large boring equipment, mining equipment and virtual-reality systems.

The proposed regulations will be made public by the end of the month, according to several industry lobbyists.

Once the rules are published, US companies will have 120 days to respond.

The new regulations would still require licenses for items such as software, lasers, cameras and navigation equipment to China. It would also call for US companies to obtain a certificate from China's Commerce Ministry stating items sold will not be for military purposes.

US companies would also be subject to a review of their sales.

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