Export Controls: Change in Licensing Jurisdiction for Commercial Communications Satellites

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Report Type	Reports and Testimonies
Report Date	Sept. 17, 1998
Report No.	T-NSIAD-98-222
Subject	Communication satellites Export regulation Foreign trade policies Interagency relations International trade restriction Jurisdictional authority Licenses Technology transfer China Dept. of Commerce Control List U.S. Munitions List Dual-use technologies Communication security

Summary:

The U.S. export control system, which involves both the Commerce and State departments, is about managing risk. Exports to some countries involve less risk than those to other countries, and exports of some items involve less risk than others. Allegations have been made that a major U.S. satellite manufacturer gave China sensitive technologies with possible military applications to that country's missile programs. GAO notes that the planning of a satellite launch with technical discussions and exchanges of information taking place over several years entails risk no matter which agency is the licensing authority. Recently, concerns have been raised about the appropriateness of Commerce's jurisdiction over communication satellites. By design, Commerce gives greater weight to economic and commercial concerns, implicitly accepting greater security risks. State, by contrast, emphasizes foreign policy implications, lessening--but not eliminating--the threat to U.S. national security interests.

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Export Controls: Change in Licensing Jurisdiction for Commercial Communications Satellites