China Reform Monitor, No. 76, May 12, 1998
American Foreign Policy Council, Washington, D.C.
US Defense Firms Demonstrate Wares at Beijing Military Electronics Trade Fair;
China Covert Plan to Acquire U.S. Encryption and Satellite Technologies Described
- May 20
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The House of Representatives vote 417-4 to sharply limit U.S. high-technology exports to China and declared that the Clinton Administration's decision to allow U.S. aerospace firms to export satellites and related technology to China was "not in the national interest," the Associated Press reports. House Speaker Newt Gingrich
announced a special Select Committee will investigate high-technology transfers to China.
- May 24
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Five prominent U.S. companies participated in China's first International Defense Electronics Exhibition in Beijing, anticipating an easing of the U.S. embargo on selling military technology to China, reports the Washington Post. Defense experts said products advertised at exhibits by Lockheed Martin Corp., Hewlett-Packard, Raytheon, Teradyne Inc. and Motorola - including radars and satellite launch technologies - all have military applications.
The Post described a Chinese-language pamphlet at the Motorola booth that advertised, "military-use, police-use computerized command, control and communications networks." Another promoted, "battlefield-deployable communications, leading the charge in information warfare." Defense expert, Bill Bates, told the Post the equipment Motorola was advertising could help China integrate its armed forces in fast-moving air-naval-land joint operations called for in the PLA's new military doctrine - a capability China currently lacks.
Despite the furor in Washington over U.S. space technologies in China's ballistic missile program, an executive from Boston-based Teradyne said his company was interested in helping the Chinese improve their satellite-launch capabilities. Chuu Shulong, a prominent Chinese defense analyst, said U.S. sanctions would be a prominent issue during the coming Clinton-Jiang summit.
- May 26
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U.S. security experts say that a massive Chinese spy operation is targeting U.S. encryption and satellite technologies that could reveal U.S. military secrets and destroy vital intelligence operations worldwide, reports Insight magazine. A 1995 GAO report documents 67 export licenses approved by the U.S. government for military industrial exports to China, including $530 million of missile-related technology. "The Department of Justice is concerned the Department of Commerce might not be identifying or seeking interagency concurrence on all potential missile technology export-license applications," the GAO report states.
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A high level Russian military intelligence official and U.S. government investigators told Insight that Chinese agents have formed a secret military partnership with Russian military intelligence. The joint agreement, secretly signed in 1992, calls for intercepting signals from satellites and breaking into private and government computer systems. "They share sensitive information with the goal of destroying the United States," states a former high level Russian intelligence agent.
--Al Santoli
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