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The United States controls the export of certain technology, including some of the equipment and materials used to make semiconductors, to sensitive destinations such as China for national security or foreign policy reasons. Semiconductors, commonly referred to as computer chips, are key components in computers, communications equipment, and weapons systems. U.S. policy on the export of such dual-use items goods and technologies that have both civilian and military uses is a subject of continuing debate. This policy strives to balance the need to protect U.S. national security and foreign policy interests with the objective to promote U.S. trade and competitiveness. As part of its efforts to control exports of sensitive dual-use technology, the United States is a member of the Wassenaar Arrangement a forum of 33 countries established in 1996 to reach multilateral agreements about which dual-use goods merit special scrutiny and reporting. 1 Report to the Ranking Minority Member, Committee on Governmental Mfairs, U.S. Senate.
Export Controls: Rapid Advances in China's Semiconductor Industry Underscore Need for Fundamental U.S. Policy Review
This book explores the sectoral, regional, bureaucratic, and transnational forces shaping China’s foreign trade policy as the country makes a transition from the era of bilateralism to engage the rules of the World Trade Organization.
In January 2002, the President announced that the control threshold above which computers exported to countries such as China, India, and Russia would increase from 85,000 MTOPS to 190,000 MTOPS. When the President changes the threshold, the National Defense Authorization Act of 1998 requires that the President provide a justification to Congress. The justification should, at a minimum, address the extent to which computers capable of performance between the established and newly proposed level of performance are available from other countries, address all their potential military uses, and assess the impact of such uses on U.S. national security interests. A related law also requires that we assess the executive branch's proposed changes. The justification for the President's January 2002 change to the control threshold for high performance computers was presented in a December 28, 2001, report to Congress. Thus, we (1) assessed the President's justification for the decision as presented in the December 2001 report and (2) identified other issues relevant to the decision to change the control threshold. To address these issues, we reviewed the statutory requirements for the justification, the documentation used by executive branch officials to support the conclusions presented in the report, and export control regulations pertaining to high performance computers. In addition, we obtained information from the 10 manufacturers listed in the President's report on the availability of high performance computers having the specifications described in the report. The information obtained from the manufacturers was supplemented with additional information obtained from a leading information technology industry market research organization. We also interviewed officials from the Departments of Commerce, Defense, and State who were responsible for producing the President's report.