The US is moving in the right direction by boosting high-tech
exports to China, but the benefits do not seem as great as the US
had claimed, Chinese trade analysts said yesterday.
Their reaction comes after the US government published
preliminary rules on US export controls to China on its Federal
Register on Thursday for public comments.
The rules, spanning 47 categories of technology goods, deal
exclusively with China.
By revising the export control rules, the US has strengthened
its economic and security interests, said David McCormick, US
undersecretary of commerce for industry and security.
Export controls, a product of the Cold War era, aim to limit the
shipment and sales of goods that could pose national security
threats if obtained by certain countries of concern. Many US
technology companies see export controls as barriers to the Chinese
market. Such controls are also believed to have caused a huge US
trade deficit with China.
The revised and enhanced rules are positive for both US
exporters and Chinese users, said Mei Xinyu, a trade expert at the
Chinese Academy of International Trade and Economic Cooperation,
affiliated to the Ministry of Commerce.
"We are still waiting for more technical analysis of the rules.
But at least the new rules are more clear than the vague
stipulations of the past," he said.
The Ministry of Commerce has not responded to the preliminary
rules.
But Mei said despite Washington's repeated vows to boost
high-tech exports to China through this revision, he did not see
many concrete moves.
The new policy will spare US exporters from the need to apply
for licenses for sales to Chinese companies in such sectors as
semiconductor equipment and electronics.
Rather than having to obtain licenses certifying that their
products comply with the cumbersome demands of US export control
regulations, the US companies would now be allowed to trade freely
with any Chinese companies on a list provided by the US
government.
"But it may mean shifting the troubles to Chinese companies,"
Mei said.
To become eligible to import certain technologies, Chinese
companies must undergo a certification process in which they
"should demonstrate an established record of non-proliferation and
responsible civilian use of US imports," according to the
rules.
McCormick cautioned earlier that the certification process will
require unprecedented openness and cooperation on the part of
Chinese companies.
US high-tech exports to China amounted to only US$12 billion
last year, compared to US$41.8 billion for total exports, according
to US customs statistics.
(China Daily July 8, 2006)