You Can’t Look the Other Way : Beijing flouted commitment on technology transfer

The trade sanctions imposed on China this week were made only after intelligence agencies produced what the State Department calls “unambiguous evidence” that Beijing last year delivered missile-related technology to Pakistan, which has been working feverishly to develop its own nuclear arsenal. Under those circumstances, U.S. law made the sanctions unavoidable.

By transferring missile components China violated its 1991 commitment to Washington to abide by the provisions of the Missile Technology Control Regime. That international agreement is an effort to control the spread of nuclear weapons by curbing the means for delivering them. China, apparently putting its appetite for hard-cash military sales ahead of its promise to Washington, chose to gamble that its technology transfers would either go undetected or be ignored. Its gamble failed, and the question now is what longer-term impact this will have on Sino-American relations.

It’s important to note that China’s exports to the United States aren’t affected by the sanctions. The main result will be to hold up for two years sales of U.S. satellites to China, including at least one on order from Hughes Aircraft Co. in Los Angeles. Potential losses to U.S. exporters could total $1 billion. China, eager to modernize its communications systems, could suffer some inconvenience. The biggest blow, though, may be to its pride. Beijing insists on the respect traditionally accorded a major power. It’s more likely to be insulted than materially damaged by the sanctions.

President Clinton, while candidate Clinton, talked about getting tough with Beijing over human rights abuses. But two months ago he opted to extend most-favored-nation trading status to China for another year. The move was meant to signal continuing U.S. interest in having solid and cordial relations with the world’s most populous country. That is an estimable goal. But at the same time the United States cannot turn a blind eye when China violates its solemn promises or abuses the rights of its citizens, inviting the responses specified by U.S. law. The sanctions are nothing to cheer about, but the principles and values they seek to uphold are.