Congress has long been concerned about whether U.S. policy advances the U.S. interest in reducing the role of the People's Republic of China (PRC) in the proliferation of weapons of mass destruction (WMD) and missiles that could deliver them. Recipients of China's technology include Pakistan and countries that the State Department says support terrorism, such as Iran, North Korea, and Libya. This CRS Report discusses the national security problem of China's role in weapons proliferation and issues related to the U.S. policy response, including legislation, since the mid-1990s. Since 1991, China has taken steps to mollify concerns about its role in weapons proliferation. Nonetheless, as the Director of Central Intelligence (DCI) has reported, China remains a 'key supplier' of weapons technology -- particularly missile and chemical technology. On November 21, 2000, the Clinton Administration agreed to waive missile proliferation sanctions, resume processing licenses to export satellites to China, and discuss an extension of the bilateral space launch agreement, in return for another promise from China on missile nonproliferation. However, PRC proliferation activities again raised questions about sanctions. On 8 occasions, the Bush Administration has imposed sanctions on PRC entities (not the government) for transfers (related to ballistic missiles, chemical weapons, and cruise missiles) to Pakistan and Iran, under the Arms Export Control Act and other legislation. Among the actions, on September 1, 2001, the Administration imposed missile proliferation sanctions denying satellite exports for 2 years, after a PRC company transferred technology to Pakistan, despite the November 2000 promise. With questions about China's enforcement of the regulations and reductions in proliferation activities, President Bush has not waived the sanctions imposed in September 2001. A table summarizes the U.S. sanctions imposed on PRC entities for weapons proliferation.


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