International Trade Law News

Published by Jacobson Burton Kelley PLLC

The Rand Corporation's National Security Research Division has issued a report entitled "Chasing the Dragon: Assessing China's System of Export Controls for WMD-related Goods and Technologies", which criticizes China's commitment to export controls on sensitive goods and technologies that could help create chemical, biological, radiological and nuclear weapons. While the report indicates that China has made much progress, it needs to do more to enforce its own controls on exports that could help other nations or organizations develop weapons of mass destruction. The study says China should do more to strengthen its anti-proliferation efforts if it wants to show itself to be a "responsible major power" that is engaged in a "peaceful rise." For example, the study notes that the Chinese government has made public only two cases of export control violations where penalties were assessed. As a result, the study says there is minimal incentive for Chinese companies to comply with the laws controlling WMD exports and to eventually police themselves.

The study also says:
--Foreign agents and enterprises operating in China have already taken advantage of China's weak regulatory environment to illicitly procure controlled items for their national WMD-related development programs.
--As a result of China's membership in the World Trade Organization, foreign involvement in China's domestic nuclear, aerospace and chemical industries will grow and could become a matter of concern for China's export control system.
--China's current anti-proliferation mechanisms are largely reactive and based primarily on reports and tips from Western intelligence officials about pending exports of controlled goods and technologies.
--Chinese Ministry of Commerce officials appear to be unwilling to pursue investigations of alleged wrongdoing against large and influential Chinese state-owned enterprises with strong political connections.

China's Foreign Ministry issued a statement criticizing the report and said the Rand Corporation "should adopt a sincere and objective attitude in viewing the Chinese government's efforts and commitment to nonproliferation."

The 134 report can be purchased for $20.00 at the following link.