Press Release

Department of Commerce Announces Signing of ‘Guidelines for U.S.-China High Technology and Strategic Trade Development’

BEIJING, CHINA—The U.S. Department of Commerce today announced the signing of “Guidelines for U.S.-China High Technology and Strategic Trade Development” (‘Guidelines’) by the U.S. Department of Commerce and China’s Ministry of Commerce (‘MOFCOM’). The Guidelines outline the importance of working cooperatively to achieve the mutual benefits of promoting U.S. high technology exports to China.

“These Guidelines are a positive step forward for bilateral, civilian high technology trade,” said Secretary of Commerce Carlos M. Gutierrez. “The Guidelines recognize China’s status as the fastest growing export market for U.S. exports and memorialize our respective commitments to communicate and cooperate, through such forums as the JCCT, to promote the development of safe, secure high technology and strategic trade between our two countries.”

The Guidelines were signed in Beijing by Under Secretary of Commerce Mario Mancuso and MOFCOM Vice Minister Wei Jiangguo on the occasion of the 18^th Joint Commission on Commerce and Trade (‘JCCT’). Under Secretary Mancuso leads the Department of Commerce’s Bureau of Industry and Security (‘BIS’), which promotes continues U.S. leadership in strategic technologies and advances U.S. national security, foreign policy, and economic objectives by administering an efficient and effective export control regime.

The Guidelines were developed by BIS and MOFCOM under the auspices of the U.S.-China High Technology and Strategic Trade Working Group (‘HTWG’). The HTWG was established at the 2005 JCCT as a mechanism for furthering U.S.-China cooperation on export control and high technology trade issues. Under the Guidelines, the Commerce Department and MOFCOM will jointly identify and carry out steps to enhance secure high technology and strategic trade.

The signing of the Guidelines continues the positive momentum of ongoing bilateral discussions and provides a framework for future discussions. For example, the commerce Department and MOFCOM will continue to review U.S. dual-use policy to identity and implement appropriate processes to streamline the licensing process for legitimate civilian trade. The Guidelines also recognize the critical role of end-use visits in ensuring the protection of U.S. national security interests in the enhancement of high technology trade.

U.S. exports to China totaled $55 billion in 2006, up 32% from 2005. U.S. high technology exports to China increased by 44% in 2006, to $17.7 billion.

Background

The U.S. Commerce Department’s Bureau of Industry and Security (BIS) is charged with the development, implementation and enforcement of U.S. export control policy for dual-use commodities, software, and technology. Dual-use items subject to BIS regulatory jurisdiction have predominantly commercial uses, but also have conventional military and weapons of mass destruction application.