Chinese language - US curbs on high-tech exports to hurt trade

BIZCHINA / Center

US curbs on high-tech exports to hurt trade

By Jiang Wei (China Daily)
Updated: 2007-06-19 17:29

China yesterday criticized a revised US regulation which tightens
controls over high-technology exports to the country.

By imposing restrictions on more categories, Washington has ignored
China's efforts at enlarging imports from the United States, which will
negatively affect the process of balancing two-way trade, Yao Shenhong, a
spokesman for the Ministry of Commerce, said yesterday.

He was responding to the latest US rule on dual-use high-tech exports to
China, published by the US Department of Commerce last Friday.

According to the regulation, the licensing requirements are expanded to a
list of items covering 20 product categories and associated technologies
and software, which the US government defined as those that "could
contribute to China's military modernization".

Items subject to the new military end-use controls include aircraft,
avionics and inertial navigation systems, lasers, depleted uranium, and
some telecommunications equipment for space communications or air
defense. The list was compiled by the US state, commerce and defense
departments.

A US rule last year targeting China requires licenses for many items not
previously controlled, and affected 47 categories of high-tech products.

Related readings:
High-tech products nearly 30% of China's foreign trade
China posted high-tech export value of US$71.8b in 1st quarter
More high-tech imports to reduce trade surplus
Penalizing China to hurt US

China has been striving to narrow its trade surplus with the United
States by importing more high-technology products.

"The new regulation increases the costs for Chinese firms involved in
high-technology trade and hurt their confidence in conducting trade with
the US," Yao said.

The new rule imposes "irrational barriers" to bilateral trade, without
considering Chinese views, he added.

US Commerce Secretary Carlos M. Gutierrez said in a press statement on
Friday that "this new rule strikes the right balance in our complex
relationship with China".

"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. The steps we are taking today are good for national security,
and for American exporters and jobs."

The American Chamber of Commerce, representing US businesses, claimed in
a report published earlier this year that the draft rule would not
effectively advance US policy objectives and would instead have the
undesirable effect of needlessly penalizing US businesses.

(For more biz stories, please visit Industry Updates)

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