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US urged to relax satellite export restrictions Source:China Daily 2013-01-07 08:57 The Ministry of Commerce expressed concern after the United States kept a tight
rein on the export of satellites and related items to China, and a senior China-US
trade expert urged Washington to drop its Cold War mindset and lift the barriers
to benefit both countries. The responses came after US President Barack Obama signed on Thursday the
National Defense Authorization Act of the 2013 fiscal year. The authorization act includes provisions that relax export restrictions but
continue to ban the export, re-export or transfer of satellites to China, as well as
the launching of US satellites in Chinese territory. Shen Danyang, the ministry's spokesman, said on Saturday in a statement that
China is "deeply disappointed and dissatisfied" with the US action. "The US has not fulfilled its promise to benefit China in its reform of the export
control system and boost exports of high-tech equipment to China," he said. "In addition, the US rolled out measures to hinder satellite cooperation for civil
purposes between the two countries," he said. China urged the US to meet its commitment, stop acting in a discriminatory
manner and soften the restrictions in real terms, which will help bilateral trade
and is in line with the two countries' common interests, he said. According to US media reports, the provisions permit the Obama administration to
remove satellites and related equipment from the US State Department's munitions
list, which restricts weapons exports to other countries. However, under the provisions, satellite exports would remain prohibited for
launches from China, the Democratic People's Republic of Korea, Iran, Cuba, Syria
and Sudan. "The provision puts China on a list with the DPRK and countries that the US deems
as supporting terrorism. It's not in line with US foreign policy concerning China,"
Zhou Shijian, a senior trade expert and professor at Tsinghua University, said on
Sunday. Currently, the US policy concerning China is to cooperate with China and try to
contain it as well. But China is not an enemy of the US, he said. In addition, the satellite cooperation for civilian purposes is "commercial activity",
and barring it is not in line with countries' interests, he said. Since the US International Traffic in Arms Regulations were expanded in 1999 to
include satellites, US satellite manufacturers' share in the global market has fallen
significantly, from 73 percent in 1995 to 25 percent in 2005, Zhou cited US media
reports as saying. Before the ban, some countries in Africa, Asia and Latin America preferred using
China's satellite launch service for its relatively low costs and high success rate, he
said. But after the ban, as China can no longer launch satellites that use US satellite
technologies, some of those countries opted to buy satellites that were
manufactured in Europe or China without ITAR-controlled components. Since 2005, China has made and launched communications satellites for Nigeria,
Pakistan and Venezuela, and launched a number of satellites made by European
companies for international clients, according to previous media reports. "Just as Neil Armstrong has described his 'small step' on the moon as 'a big step
for mankind', developing the space industry is for the good of the whole
mankind," he said. "Cooperation is needed, not the opposite. The US should drop its Cold War mindset
on this matter," he said. The US has sent signals in recent years that it intends to loosen restrictions on
high-tech exports to China and resolve the trade imbalance. But the promises have
not been met. In March 2011, US Ambassador to China Gary Locke said the US will allow 46 of
the 141 high-tech items to enter the Chinese market, and some may not need a
license. But Zhou said research showed all of the 46 items are comparatively low-end
goods, and that the high-tech goods still cannot be exported to China.
rein on the export of satellites and related items to China, and a senior China-US
trade expert urged Washington to drop its Cold War mindset and lift the barriers
to benefit both countries. The responses came after US President Barack Obama signed on Thursday the
National Defense Authorization Act of the 2013 fiscal year. The authorization act includes provisions that relax export restrictions but
continue to ban the export, re-export or transfer of satellites to China, as well as
the launching of US satellites in Chinese territory. Shen Danyang, the ministry's spokesman, said on Saturday in a statement that
China is "deeply disappointed and dissatisfied" with the US action. "The US has not fulfilled its promise to benefit China in its reform of the export
control system and boost exports of high-tech equipment to China," he said. "In addition, the US rolled out measures to hinder satellite cooperation for civil
purposes between the two countries," he said. China urged the US to meet its commitment, stop acting in a discriminatory
manner and soften the restrictions in real terms, which will help bilateral trade
and is in line with the two countries' common interests, he said. According to US media reports, the provisions permit the Obama administration to
remove satellites and related equipment from the US State Department's munitions
list, which restricts weapons exports to other countries. However, under the provisions, satellite exports would remain prohibited for
launches from China, the Democratic People's Republic of Korea, Iran, Cuba, Syria
and Sudan. "The provision puts China on a list with the DPRK and countries that the US deems
as supporting terrorism. It's not in line with US foreign policy concerning China,"
Zhou Shijian, a senior trade expert and professor at Tsinghua University, said on
Sunday. Currently, the US policy concerning China is to cooperate with China and try to
contain it as well. But China is not an enemy of the US, he said. In addition, the satellite cooperation for civilian purposes is "commercial activity",
and barring it is not in line with countries' interests, he said. Since the US International Traffic in Arms Regulations were expanded in 1999 to
include satellites, US satellite manufacturers' share in the global market has fallen
significantly, from 73 percent in 1995 to 25 percent in 2005, Zhou cited US media
reports as saying. Before the ban, some countries in Africa, Asia and Latin America preferred using
China's satellite launch service for its relatively low costs and high success rate, he
said. But after the ban, as China can no longer launch satellites that use US satellite
technologies, some of those countries opted to buy satellites that were
manufactured in Europe or China without ITAR-controlled components. Since 2005, China has made and launched communications satellites for Nigeria,
Pakistan and Venezuela, and launched a number of satellites made by European
companies for international clients, according to previous media reports. "Just as Neil Armstrong has described his 'small step' on the moon as 'a big step
for mankind', developing the space industry is for the good of the whole
mankind," he said. "Cooperation is needed, not the opposite. The US should drop its Cold War mindset
on this matter," he said. The US has sent signals in recent years that it intends to loosen restrictions on
high-tech exports to China and resolve the trade imbalance. But the promises have
not been met. In March 2011, US Ambassador to China Gary Locke said the US will allow 46 of
the 141 high-tech items to enter the Chinese market, and some may not need a
license. But Zhou said research showed all of the 46 items are comparatively low-end
goods, and that the high-tech goods still cannot be exported to China.