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Dual Use Technology Exports to China Continue Unabated, Experts Say
By Lawrence Morahan
CNSNews.com Senior Staff Writer
January 28, 2002

(CNSNews.com) - Despite official U.S. monitoring of the export of
sensitive electronic equipment to China, the communist regime in
Beijing still manages to acquire as much American technology as it
needs to modernize its armed forces, which pose an increasing threat
to the United States and its allies, China experts said.

"I find this analogous to the terrorism situation," said Gene Poteat,
president of the Association of Former Intelligence Officers.

"Nobody believed in terrorism and what would happen," added Poteat, a
retired CIA scientific intelligence officer and an expert in China's
threat capability. "We're sort of doing it to ourselves again by
subsidizing these technology sales through our commercial purchases
[from China]," he said.

Media attention to the export to China of dual use technology - a term that refers to 
equipment that has both military and civilian applications - has been eclipsed by the 
events of Sept. 11 and Beijing's pledge of suppor
t for the U.S-led war on terrorism, China observers said.

But China has not changed its fundamentally hostile stance toward the United States, 
or slowed in its efforts to expand and modernize its armed forces, experts said. 
Beijing continues to build and aim missiles at the Unit
ed States, and harbors ambitions to become a regional superpower, threatening U.S. 
allies.

The United States assists these efforts indirectly by building factories and research 
centers in China, and by training Chinese engineers and scientists, analysts said.

"It's not that we're exporting to China, we're investing in China," said William 
Hawkins, a senior fellow with the U.S. Business and Industry Council in Washington, 
and an expert on U.S trade with China.

Boeing is training Chinese engineers in the manufacture of parts for U.S. planes at 
facilities in China where the Chinese are building military aircraft, Hawkins said. 
Honeywell and other high-tech companies bring Chinese
 engineers to the United States to train them in the manufacture of electronics and 
aircraft parts, he said.

China also acquires U.S. technology through more than 800 companies in the United 
States, which Beijing maintains as front organizations.

In early 1999, a U.S. House committee led by California Republican Christopher Cox 
concluded that the Chinese had stolen enough weapons information from the United 
States to allow them to improve their nuclear capabilitie
s by several decades.

China Seeks U.S. Supercomputers

China is the main reason for export restrictions on supercomputers, whose primary use 
is in design work for aerospace applications, weapons' manufacture and nuclear 
modeling.

"At the high end, there isn't a lot of purely commercial use for computers of that 
capacity," Hawkins said. "You don't need them to design the next VCR."

The United States is not the only Western country helping the communists. Japan is 
modernizing China's shipbuilding capability and Israel is supplying Beijing with the 
latest missile technology, Poteat said.

Israel also is helping the communists update their conventional forces by installing 
new electronic sensors and more powerful guns in Soviet equipment used by the People's 
Liberation Army.

"Israel has found a niche market for its defense industry in going around and 
upgrading all the old Soviet equipment around the world," Hawkins said. "They have a 
good idea of how that stuff works, they captured so much o
f it from the Arabs."

China spends hard currency it earns through the sale of consumer goods to the West on 
the latest in modern weapons from Russia, including destroyers that have SSN-22 cruise 
missiles, which pose a serious threat to U.S. Na
val forces in the Pacific, Poteat said.

"These missiles, properly armed, could sink an aircraft carrier," he said.

China, in turn, supplies missile technology to countries inimical to the United 
States, specifically Pakistan, Iraq, Iran, and North Korea, Poteat said.

"We are providing them an enormous amount of money through the trade deficit. They're 
building up their military and also exporting it and buying from other nations," he 
said.

John Pike, director of Globalsecurity.com, a defense think tank, said Americans have 
been lulled into a false sense of security through the election of George Bush to the 
White House.

"The main reason you haven't heard anything about this as a public policy controversy 
for at least a year is because most of the controversy prior to that was just partisan 
politicking," Pike said.

The Bush administration has not noticeably changed the policies of the previous 
administration, he said. Most of the goods that go between the United States and China 
are screened for possible violations of trade and tari
ff regulations, such as anti-dumping regulations or violations of U.S. laws on the 
import of prison labor.

U.S-China Commission Report Due in June

U.S. officials who spoke at a U.S-China Commission hearing in Washington last week 
said, however, the United States closely monitors high-tech exports to China.

Most export license requests are approved, but contain strict conditions, such as 
requiring follow-up inspections to make sure the equipment is being used for the 
approved purpose, they said.

The People's Republic of China accounts for 12 percent of all the export licenses 
handled by the Commerce Department.

Officials were divided about how concerned the United States should
be about exports of high-tech equipment to China. The commission is
expected to make its first report to Congress in June.

E-mail a news tip to Lawrence Morahan.

Send a Letter to the Editor about this article.
End<{{{
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