Chinese experts accuse U.S. export control rule of spoiling high-tech trade

Chinese experts lashed out on Wednesday at proposed U.S. export controls on the sale of high technology products to China, saying it would hinder regular bilateral trade, especially in the high-tech sector.

The proposed rules would add civilian-use, high-tech products to the U.S. government's export control list and could set up new trade barriers and clog the exchange of high-technologies, according to a report released on Wednesday by experts from the China Arms Control and Disarmament Association, a non-governmental organization.

The new export control rules released by the U.S. Department of Commerce on July 6, are in the public consultation stage until Nov. 3.

The proposed export controls would expand the list of high-tech products requiring an export license to 47 categories and would include included items that pose no threat to national security.

The proposed rules require exporters to obtain an End-User Certificate from China's Ministry of Commerce for all items that require a license and exceed a total value of 5,000 U.S. dollars.

The new rules also propose to create a new authorization system for validating end-users in China, which would then be approved by the U.S. government.

"This will stifle regular bilateral trade. China's Ministry of Commerce will be overloaded issuing certificates and it will be a burden to Chinese companies as well," said the experts.

Companies on the list also have to demonstrate an established record of civilian use of U.S. imports, obey U.S. export control regulations, allow the U.S. government to conduct end-use inspections and checks, and have sound relations with companies in the United States and other countries.

The Commerce Ministry spokesman Chong Quan said in July that, "We hope the U.S. will lose its Cold War mentality and take constructive measures to promote two-way high-tech trade, to help solve the trade imbalance between our two countries."

The experts' announcement warned that the new rule will weaken the Sino-U.S. technological cooperation and force China to turn to other foreign trade partners, leaving U.S. companies to suffer losses in the Chinese market.

According to the announcement, the rule has not only incurred concern from the Chinese government and enterprises, but also stirred dissatisfaction by related U.S. companies and organizations.

The U.S. Semiconductor Industry Association, U.S. Chamber of Commerce and American Bar Association have all openly criticized the rule, it said.

If the U.S. companies are barred from trades in this field by the new rule, European rivals will soon take over the Chinese market, said the report.

The announcement suggested that the U.S. government should take the overall situation into consideration and actively promote bilateral high-tech trades.

Chinese Commerce Minister Bo Xilai on Monday also urged the U.S. government to ease export controls, saying it is a major contributor to a huge U.S. trade deficit with China, while meeting with the United States Trade Representative Susan Schwab.

The Sino-U.S. trade volume totaled 211.6 billion U.S. dollars last year, with China's trade surplus over 114 billion U.S. dollars, according to statistics from China's Ministry of Commerce.

Source: Xinhua