US tightens high-tech export controls

The United States is tightening export controls on high-tech goods ranging from aircraft to space communication systems that could be used by China in its military modernization program, a US Commerce Department official said.

The new regulation, which takes effect on Tuesday when it is published in the Federal Register, also creates a "trusted customer" programme that will allow approved companies in China to import many high-tech goods with having to obtain an individual license, the Commerce official said.

The new trusted customer - or "validated end user" - programme reflects another US priority of helping China "facilitate their political and economic integration into the world community," the official said.

The Commerce Department scaled back its original July 2006 proposal for controls based on consultations with the State and Defense departments, US trading partners, business groups and the Chinese government, the official said.

The final list of controlled categories was reduced to 20, from 27, and includes certain aircraft and aircraft engines, underwater systems, avionics, inertial navigation systems, certain composite materials, lasers, depleted uranium and certain telecommunication systems related to space communications or air defence.

Generally available computers, semi-conductors, electronics, general purpose telecommunication equipment, and general purpose chemicals were taken off the list.

Many US business groups objected to the original proposal, which they said would bar US companies from selling products the Chinese can already buy in their own market or easily purchase from other suppliers.