Bush okays some technology exports to China

Submitted by nestorb on Sat, 2007-03-10 15:22.

Feb 12, 2007 -- WASHINGTON (Reuters) - President George W. Bush on Monday paved the way for some Honeywell International Inc. (HON.N: Quote, Profile , Research) and Boeing Co. (BA.N: Quote, Profile , Research) technology exports to China by certifying they would not be detrimental to the U.S. space industry or improve China's missile and space capabilities.

In a message to Congress, Bush certified that exporting the items "will not measurably improve the missile or space launch capabilities of the People's Republic of China."

The president is required under a 1999 law to certify that exports of certain dual-use items to China would not improve its current missile or space launch capabilities.

The certification was for 20 Honeywell model QA 750 accelerometers to be incorporated into railway geometry measurement systems for China's Ministry of Railways, and equipment and technology associated with the production and testing of composite components for Boeing commercial aircraft.

Boeing announced in April 2006 that it would sell 80 737s to China, in addition to 70 airplanes ordered in November 2005.

In 2003, Boeing and Hughes Electronics Corp. agreed to jointly pay $32 million in civil penalties to settle U.S. government charges that they improperly shared rocket technology with China in the 1990s.

Boeing's commercial aircraft sales have also raised concerns, given that microchips and other items used on commercial aircraft could also be used by China to help guide missiles and warplanes.