Muddy waters; U.S. attorney starts probe of high-tech sale to China
Article Abstract:
The US Attorney's Office is conducting an investigation to determine whether sophisticated machine tools were diverted from a McDonnell Douglas joint venture in China to a factory that manufactures cruise missiles. McDonnell Douglas and partner China National Aerospace Import and Export Corp were granted an export license by US government agencies in 1994 for machine tools to be used to manufacture the MD80/90 airliner in Shanghai, China. McDonnell Douglas discovered that six of the 17 machine tools ended up at a cruise missile factory in Jiangxi province.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1996
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Playing for keeps: China bought hi-tech American machine tools, ostensibly for civilian use. Instead it sent them to a weapons factory - exposing U.S. export controls as ineffective
Article Abstract:
US aerospace company McDonnell Douglas discovered in Mar 1995 that equipment it sold to China was being used in violation of export agreements, raising further concerns about technology transfers benefitting China's military. The affair has apparently been resolved to the US government's satisfaction, but China's assurances that the sophisticated machining equipment was not being used for military purposes comfort few of its neighbors, especially as some was installed at a plant that makes both military and civilian parts.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1996
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Strategic flaw: U.S. export-control policy suffers basic defects
Article Abstract:
Weak US export controls play into the hands of China's aggressive technology acquisition program, perhaps helping it to build a more sophisticated military. Concerns raised within the US government over planned sales often receive short shrift, and it is very difficult to perform on-the-spot evaluations of prospective Chinese buyers of dual-use items, or to check where equipment is actually sent. Many members of the former organization for monitoring technology exports are eager to sell to China because of its vast market.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
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