RL31555
China and Proliferation of Weapons of Mass Destruction and Missiles: Policy Issues
April 06, 2006
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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 reportedly include Pakistan and countries that the State Department says support terrorism, such as Iran and North Korea. This CRS Report, updated as warranted, 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. 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 15 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, Iran, or another country. The latest sanctions were imposed on December 23, 2005. (See Table 1, summarizing U.S. sanctions imposed on PRC entities.) 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. On September 19, 2003, the State Department imposed more missile proliferation sanctions on NORINCO, a defense industrial firm, denying satellite exports to China. However, the State Department has extended a waiver for the ban on imports of other PRC government products related to missiles, space systems, electronics, and military aircraft, with the latest extension on March 18, 2006. Skeptics say that despite summits (the next on April 20), President Bush has not effectively pressed China on non-proliferation. The Administration has imposed repeated sanctions on "entities" but not the government. Since 2002, Bush has relied on China's "considerable influence" on North Korea to dismantle its nuclear weapons. China sponsored a Statement of the Six-Party Talks that was signed on September 19, 2005, but results remain elusive. The House International Relations Committee held a hearing on May 18, 2004, to question U.S. support for China's membership in the Nuclear Suppliers Group (NSG) despite PRC ties with Pakistan. China has not joined the Proliferation Security Initiative (PSI). China's cooperation is also needed to address Iran's nuclear program at the U.N. Security Council or to apply sanctions. Congress has oversight of whether the Export-Import Bank should extend a loan or loan guarantee for the export of nuclear reactors to China.
