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Export Controls: Sensitive Machine Tool Exports to China

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Report Type Reports and Testimonies
Report Date Nov. 19, 1996
Report No. NSIAD-97-4
Subject
Summary:

Following a lengthy review, the Commerce Department in 1994 allowed the McDonnell Douglas Corporation to export to China machine tools for producing commercial aircraft. Some of these machine tools were later diverted to a Chinese facility that built fighter aircraft and cruise missiles for the Chinese army. Commerce's enforcement office, however, did not formally investigate the export control violations until six months after they were reported. The U.S. Customs Service and Commerce are now conducting a criminal investigation under the direction of the Justice Department.

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