Export Controls

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.

GAO noted that: (1) the U.S. export control system--comprised of both the Commerce and State systems--is about managing risk; (2) exports to some countries involve less risk than to other countries and exports of some items involve less risk than others; (3) the planning of a satellite launch with technical discussions and exchanges of information taking place over several years involves risk no matter which agency is the licensing authority; (4) recently, events have focused concern on the appropriateness of Commerce jurisdiction over communication satellites; (5) this is a difficult judgment; (6) by design, Commerce's system gives greater weight to economic and commercial concerns, implicitly accepting greater security risks; and (7) by design, State's systems gives primacy to national security and foreign policy concerns, lessening--but not eliminating--the risk of damage to U.S. national security interests.