Clinton Administration Eases Sanctions on China, Clears Path for Commercial Satellite Launch

Strategic Insights -

The Clinton Administration has announced plans to ease punitive economic sanctions against China, paving the way for the Hughes Aircraft Company to launch a commercial satellite from the country. This move comes as the Administration presses Beijing to improve its human rights record, a key condition for extending China's preferential trade benefits when they expire in June. The launching of the Australian communications satellite would be the second time this year that the United States has eased sanctions against China, with the first instance occurring in January when the Administration approved the launching of two commercial satellites from China.

Key Takeaways:

  • The Clinton Administration has begun to pave the way for the Hughes Aircraft Company to launch a commercial satellite from China, despite ongoing human rights concerns.
  • The decision represents the second time this year that the United States has eased punitive economic sanctions against China.
  • The Administration is pressing Beijing to substantially improve its human rights record, a condition for extending China's preferential trade benefits.
  • The launching of the satellite will put an Australian communications satellite in orbit, marking the latest step in the Administration's six-month-old policy of intensified political and economic engagement with China.
  • Frank Wisner, the Under Secretary of Defense for Policy, will accompany Secretary of State Warren Christopher to Beijing and stay to discuss ways to upgrade the two countries' military relationship.
  • The Administration imposed sanctions on an estimated $1 billion in high-technology trade with China in August, after Beijing shipped missile technology and components to Pakistan in violation of international accords.
  • The sanctions affected the planned launchings of seven commercial satellites on Chinese rockets.
  • In January, the White House approved the launching of two commercial satellites from China, one by Martin Marietta and the other by Hughes.
  • White House lawyers said satellites that did not include items on the State Department's munitions list could be approved for export, as demonstrated by the Hughes reconfigured the satellite to remove sensitive coding equipment.

Statistics:

  • Estimated total value of high-technology trade with China affected by sanctions: $1 billion
  • Number of commercial satellites affected by sanctions: 7
  • Number of commercial satellites launched from China approved by the Administration in January: 2
  • Value of approval for export of satellites not including items on the State Department's munitions list: Not stated

Sources:

  • "Clinton Administration Eases Sanctions on China" by The New York Times