Washington -- Representatives from both the Clinton administration and Congress say U.S. export controls relating to China will get special scrutiny over the next year.

During a December 10 panel session, Ian Baird, deputy assistant secretary of commerce, said he expected a major inter-agency review of policy on exports of advanced technology to China.

As with other aspects of trade with China, the export control issue splits U.S. interest groups. Businessmen like those attending this panel session organized by the Practising Law Institute generally favor relaxed controls.

Panelist Christopher Hankin, now a staff member in the House of Representatives International Relations Committee and formerly a State Department official, said members of Congress have a number of opportunities in 1997 to consider statutory changes in export controls for China.

One opportunity would arise if Congress attempted to overturn any presidential decision extending for another year most-favored nation (MFN) status for imports from China.

Another would arise if Congress was reviewing administration policy on accession by China to the World Trade Organization (WTO).

Still another opportunity would come if Congress passed a reformed Export Administration Act (EAA), as it tried and failed to do in 1990, 1992, 1994 and 1996. Since the EAA expired in 1994 the Clinton administration has kept its export control system operating under emergency law.

Hankin identified four overlapping congressional factions with influence on China legislation: those concerned with weapons proliferation, human rights, Taiwan and the soaring U.S. bilateral trade deficit. He offered no prediction about the outcome of any export control proposals on China.

Hankin said he sensed, though, that some members of Congress wanted to lower the present threshold for imposing U.S. sanctions against countries that engage in weapons proliferation, citing an intelligence report that China sold Pakistan specialized magnets for use in centrifuges that enrich uranium.

China has also been criticized for selling arms to Iran. Chinese Defense Minister Chi Haotian, visiting Washington December 9, responded to reporters about charges of weapons proliferation: "Some of the issues have been exaggerated, and some of these issues simply do not exist."

On another issue at the panel session, Baird of the Commerce Department said the administration was considering modest relaxation of controls on exports of oscilloscopes and machine tools.
NNNN