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Summary

Congress has long been concerned about whether U.S. policy advances the national interest in reducing the role of 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. This CRS Report discusses the national security problem of China's role in weapons proliferation and issues related to the U.S. policy response, including legislation, since the mid-1990s. A table summarizes the U.S. sanctions imposed on PRC entities for weapons proliferation. This report will be updated as warranted. Since 1991, China has taken some steps to mollify U.S. concerns about its role in weapons proliferation. Nonetheless, supplies from China have 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 to Congress, China remains a "key supplier" of weapons technology -- particularly missile or chemical technology. Policy issues in seeking PRC cooperation 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 promise from China on missile nonproliferation. However, PRC proliferation activities again raised questions about sanctions. On ten occasions, the Bush Administration has imposed sanctions on PRC entities (not the government) for transfers (related to ballistic missiles, chemical weapons, and cruise missiles) to Pakistan and Iran. Among those sanctions, on September 1, 2001, the Administration imposed missile proliferation sanctions that effectively denied satellite exports (for two years), after a PRC company transferred technology to Pakistan, despite the November 2000 promise. During preparations for the U.S.-PRC summit in October 2002, China, in August 2002, published the missile export controls promised in November 2000, but questions have persisted about China's enforcement of those regulations. On September 19, 2003, the State Department imposed more missile proliferation sanctions on NORINCO, a defense industrial firm, denying satellite exports to China for two more years, while waiving for one year the import ban on other PRC government products related to missiles, space, electronics, and military aircraft (sanctions that could affect $12 billion in imports from China). Critics say that President Bush has not forcefully pressed China's leaders on weapons nonproliferation. Meanwhile, Bush has sought China's help in a multilateral effort to dismantle North Korea's nuclear weapons programs. In April 2004, the Commerce Department agreed to review whether to change China's "nonmarket economy" status, based upon which the "Helms Amendment" has broadened missile proliferation sanctions. The House International Relations Committee held a hearing on May 18, 2004, to question the Administration's support for China's membership in the Nuclear Suppliers Group (NSG).

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