Summary: As part of a joint venture involving U.S. and Chinese companies, broadband telecommunications equipment with a host of commercial applications--from video-conferencing to telemedicine--was shipped to China. This equipment is of considerable interest to the Chinese military, which would like to acquire it to upgrade its command and control networks. The creation of a new general license category in April 1994 allowed the export of this equipment to China without a validated license being issued by the Commerce Department. Determining who is a civil end user under the new general license category is the responsibility of the exporting companies. This is particularly difficult in China, however, because of the Chinese military's involvement in various commercial ventures. Information is not readily available to exporters on how much military involvement in a commercial firm constitutes a military end user. As Commerce gains experience under the new general license category, it may want to consider providing additional information or guidance to exporters to help them determine when they should request a government review of an end user.
