Announcing Tuesday that the public comment period for developing new export rules to China has closed, U.S. Secretary of Commerce Carlos Gutierrez said he will now lead an effort to finalize the new rules.
Gutierrez will further discuss export controls with his Chinese counterparts at the Strategic Economic Dialogue in Beijing on December 14-15.
"U.S. exports to China are up 35 percent and we believe there’s a great deal of room to grow," said Gutierrez. "As we expand our exports to China, we need to strike the right balance of promoting exports while also having prudent safeguards to protect our national security. We believe we can find the right balance, and that new rules will simultaneously enhance exports and safeguard U.S. security. "The bottom line is that export controls do not significantly reduce the volume of U.S. exports."
The DOC has proposed an update to U.S. dual-use export licensing policy toward China that would improve export policy for civilian use while denying China access to American technologies that would contribute to its military.
The proposed rule is designed to facilitate U.S. civilian high technology exports to China by creating a validated end-user program to permit exports of certain items for civilian use to trusted customers in China without the usual license. The proposed rule would add controls to specific exports that would potentially increase China’s military capabilities.
In fiscal 2006, $2.5 billion in proposed exports to China needed a license, 4.6 percent of total U.S. exports of $52 billion. Applications totaling $20 million were denied.
The Department of Commerce, through its Bureau of Industry and Security (BIS), regulates the export of sensitive goods and technologies, enforces export control laws, assists U.S. industry in complying with international arms control agreements, and monitors the viability of the U.S. defense industrial base.