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Summary
Congress has long been concerned about challenges to U.S. security interests posed by the People's Republic of China (PRC) in the proliferation of weapons of mass destruction (WMD) and missiles that could deliver them. Recipients of China's technology include Pakistan and countries that the State Department says support terrorism, such as Iran, North Korea, and Libya. The terrorist attacks on September 11, 2001, added an urgent U.S. interest in weapons nonproliferation. Since 1991, Beijing has taken some steps to mollify concerns about its role in weapons proliferation. Nonetheless, China has aggravated trends that result in ambiguous technical aid, more indigenous capabilities, longer range missiles, and secondary (retransferred) proliferation. As the Director of Central Intelligence (DCI) has reported, the PRC remains a "key supplier" of technology inconsistent with nonproliferation goals -- particularly missile or chemical technology transfers. Policy issues have concerned summits, sanctions, and satellite exports. On November 21, 2000, the Clinton Administration agreed to waive missile proliferation sanctions, resume processing licenses to export satellites to China, and discuss an extension of the bilateral space launch agreement, in return for another PRC promise on missile nonproliferation. However, PRC proliferation activities again raised questions about sanctions. On five occasions, the Bush Administration has imposed sanctions on PRC entities for transfers (related to ballistic missiles, chemical weapons, and cruise missiles) to Pakistan and Iran, under the Arms Export Control Act, Export Administration Act, Iran Nonproliferation Act of 2000, and Iran-Iraq Arms Nonproliferation Act of 1992. Among the actions, on September 1, 2001, the Administration imposed missile proliferation sanctions (denying satellite exports), after a PRC company transferred technology to Pakistan, despite the November 2000 promise. PRC President Jiang Zemin is invited to visit President Bush's ranch in Crawford, TX, on October 25, 2002. During preparations for the summit, China, on August 25, 2002, published the missile export controls promised in November 2000. Depending on the enforcement of the regulations and reductions in proliferation practices, one issue for President Bush is whether and when to waive the missile proliferation sanctions imposed in September 2001. In 107th Congress, Senator Thompson inserted a section (1040) in the FY2003 National Defense Authorization Act (passed as H.R. 4546 by the Senate on June 27, 2002) to require semi-annual reports on foreign entities contributing to weapons proliferation. He also inserted a section (314) in the Intelligence Authorization Act for FY2003 (S. 2506) to require the DCI to submit annual reports on PRC and other foreign companies that are involved in weapons proliferation and raising funds in U.S. capital markets. Reporting the bill on May 13, 2002, the Senate Intelligence Committee (in S.Rept. 107-149) added that it does not intend to restrict access to those markets. On July 9, 2002, the Senate Armed Services Committee reported the legislation (S.Rept. 107-208) with no comment on section 314.
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Related Legislation:
- H.R.4546
- S.2506





