New York Times Publishes Article Questioning New China Export Rules
On
January 2, 2008, the New York Times published a
report entitled, "Eased
Rules on Tech Sales to China
Questioned." The
report states that the Bush administration
"quietly" eased some restrictions on the export
of "politically delicate technologies to China"
six months ago, but are now facing questions
from weapons experts about whether some
equipment could instead end up helping China
modernize its military.
The report states that questions are being raised by a report entitled, In China We Trust, issued by this week by the Wisconsin Project on Nuclear Arms Control, an independent research foundation that opposes the spread of arms technologies. The Wisconsin Project specifically questions the wisdom of BIS' new Validated End User authorization. In October 2007, BIS announced the first five companies approved for VEU authorization.
The report claims that two of the first nonmilitary Chinese companies designated as VEUs are in fact high risk because of their links to the Chinese government, the People's Liberation Army, and other Chinese entities accused in the past of ties to Syria and Iran. One of these Chinese companies, the BHA Aero Composites Company, is partly owned by two American companies - 40 percent by Boeing and 40 percent by the aerospace materials maker Hexcel, with the remaining 20 percent owned by a Chinese government-owned company, AVIC I, or the China Aviation Industry Corporation I.
Gary Milollin, director of the Wisconsin Project, claims that his staff has uncovered several links with the Chinese military establishment involving both BHA and another of the first five VEUs, the Shanghai Hua Hong NEC Electronics Company. The report claims that AVIC I produces fighters, nuclear-capable bombers and aviation weapons systems for the People's Liberation Army and the U.S. State Department has cited another AVIC subsidiary, the China National Aero-Technology Import & Export Corporation, for links to arms sales to Iran and Syria.
The Wisconsin Project report also states that Shanghai Hua Hong NEC Electronics is majority owned "through a corporate chain" by the China Electronics Corporation, which the report says is a government conglomerate that produces military equipment along with consumer electronics. The report claims it has a unit that produces arms for the military.
The report states that questions are being raised by a report entitled, In China We Trust, issued by this week by the Wisconsin Project on Nuclear Arms Control, an independent research foundation that opposes the spread of arms technologies. The Wisconsin Project specifically questions the wisdom of BIS' new Validated End User authorization. In October 2007, BIS announced the first five companies approved for VEU authorization.
The report claims that two of the first nonmilitary Chinese companies designated as VEUs are in fact high risk because of their links to the Chinese government, the People's Liberation Army, and other Chinese entities accused in the past of ties to Syria and Iran. One of these Chinese companies, the BHA Aero Composites Company, is partly owned by two American companies - 40 percent by Boeing and 40 percent by the aerospace materials maker Hexcel, with the remaining 20 percent owned by a Chinese government-owned company, AVIC I, or the China Aviation Industry Corporation I.
Gary Milollin, director of the Wisconsin Project, claims that his staff has uncovered several links with the Chinese military establishment involving both BHA and another of the first five VEUs, the Shanghai Hua Hong NEC Electronics Company. The report claims that AVIC I produces fighters, nuclear-capable bombers and aviation weapons systems for the People's Liberation Army and the U.S. State Department has cited another AVIC subsidiary, the China National Aero-Technology Import & Export Corporation, for links to arms sales to Iran and Syria.
The Wisconsin Project report also states that Shanghai Hua Hong NEC Electronics is majority owned "through a corporate chain" by the China Electronics Corporation, which the report says is a government conglomerate that produces military equipment along with consumer electronics. The report claims it has a unit that produces arms for the military.