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Proposals by Bipartisan Panel on U.S.-China Security

July 12, 2002

Recommendations included in the U.S.-China Security Review Commission's report to Congress would:

* Give the president the authority to penalize governments for violating weapons control agreements and expand the sanctions to include trade and investment restrictions and limits on access to U.S. capital markets.

* Require pre-license and end-user checks on sensitive technology sold to China to prevent diversion to military users.

* Require U.S. firms to disclose information on investments in China, including technology transfer, shift of production capacity and contracting relationships with Chinese firms.

* Require a code of ethics for U.S. firms operating in China.

* Require the Treasury Department to conduct studies of the employment effects of projects financed by international institutions such as the World Bank and the Asian Development Bank.

* Use the Enhanced Border Security and Visa Reform Act of 2002 to more closely monitor Chinese students, scholars and researchers in the U.S.

* Consider using the national security exception of World Trade Organization rules to impose temporary barriers to Chinese steel imports.

* Closely monitor Chinese enforcement of counterfeiting and piracy involving U.S. motion pictures and other video products and file a WTO complaint if progress is not made.

* Require U.S. firms to certify that products they import are not made by forced or prison labor.

* Direct the U.S. government to study possible restrictions on the export of technology that permits the Chinese government to police the Internet.

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