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US considers new export restrictions on China
(chinadaily.com.cn)
Updated: 2005-07-29 13:53

Currently, only 1.5 percent of the $35 billion in U.S. exports to China requires a government export license, the department says. Depending on how the new rules are structured, U.S. industry lobbyists say, the proportion could grow to more than 10 percent.

World leading chip maker Intel Corp has reported that its Asia operations lead global sales growth. China alone accounted for about $5 billion of the company's $34 billion company revenue last year. Intel has 5,000 employees in China and has invested $1.3 billion in design centers, laboratories and factories there.

"We're living in a world where technology has become a commodity," Jennifer Greeson, an Intel spokeswoman, said. "Restricting access to markets would have a pretty significant impact on the U.S. technology sector."

Boeing, which this year won orders from Chinese airlines for 60 of its new 787 Dreamliner jets, said in June that it would use about $600 million in parts from Chinese companies.

The Bush Administration is still debating the details of the new regulations, and an intense lobbying campaign is being waged to influence the outcome, Bloomberg reported.

Business groups including the U.S. Chamber of Commerce and the Aerospace Industries Association have been trying to limit any new restrictions.

Pat McCartan, director of legislative affairs for the aerospace group, said that while "we don't want to supply the Chinese military," the changes being considered by the administration and the U.S. Congress "would slow our exports to China."


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