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05/11/1996 Sanctions averted, China says it upholds nuclear treaty
05/09/1996 U.S. sets deadline for possible China trade sanctions
Piracy of goods forces America's hand

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Sanctions averted, China says it upholds nuclear treaty

May 11, 1996 Web posted at: 4:30 p.m. EDT (2030 GMT)

BEIJING, China (CNN) -- A day after the United States backed down on threats to impose sanctions on China for exporting nuclear-related technology to Pakistan, China assured the United States it is observing the nuclear weapons non-proliferation treaty.

"China pursues the policy of not endorsing, encouraging or engaging in the proliferation of nuclear weapons, or assisting other countries in developing such weapons," a spokesman for the Chinese Foreign Ministry said, according to a report by the Xinhua news agency.

"The nuclear cooperation between China and the countries concerned is exclusively for peaceful purposes," the spokesman said. "China will not provide assistance to unsafeguarded nuclear facilities."

The announcement followed Washington's decision Friday not to impose sanctions on Beijing for the alleged sale to Pakistan of $70,000 worth of ring magnets that can be used to enrich uranium. The findings raised concerns that China could help Islamabad in its quest to make a nuclear bomb.

The U.S. State Department said the Chinese government made assurances that China did not know the technology had been sold by a Chinese company.

"On the basis of a close review of the evidence available in this case, and the clarifications and assurances provided by China regarding past transfers and Chinese nuclear export control policies, the secretary of state has concluded that there is not a sufficient basis to warrant a determination that sanctionable activity occurred," State Department spokesman Nicholas Burns said.

After the White House threatened sanctions, the Chinese noted that the ring magnets weren't on the proscription list and said central authorities weren't aware of the deal with Pakistan. China also announced it wouldn't export nuclear material to nuclear facilities that are not monitored.

While the immediate conflict has been resolved, tensions linger between the United States and China over other sanctions pending against Beijing.

Next week Washington will decide whether to punish China for allegedly allowing the continued production of pirated compact discs, movies and computer software. Washington says illegal sales are costing U.S. companies an estimated $2.3 billion a year.

From CNN

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U.S. sets deadline for possible China trade sanctions
Piracy of goods forces America's hand

May 9, 1996 Web posted at: 11:50 a.m. EDT (1550 GMT)

BEIJING, China (CNN) -- With the United States and China wrangling over copyright piracy, Beijing said Thursday the diplomatic split might result in a bitter trade war.

"If the United States announces any sanctions targeting China, we'll immediately release a tit-for-tat package with even greater value involved," said Zhang Yuejiao, an official at the Ministry of Foreign Trade and Economic Cooperation.

Washington is threatening China with sanctions unless it improves enforcement of an agreement to halt Chinese counterfeiting of U.S. music, films and computer software. The February 1995 accord helped the two countries avoid a separate trade showdown.

The White House said Wednesday a preliminary list of $3 billion in Chinese imports that could be hit with sanctions would be published May 15 if China does not comply. Sanctions would be imposed after a 30-day grace period.

In an effort to show its compliance, Beijing has said it closed seven compact disc plants that violated copyright laws.

Sanctions unpopular

Despite the tough diplomatic talk, Washington insists there is still time to forge an agreement without imposing sanctions.

Deputy U.S. Trade Representative Lee Sands is heading to Beijing to try to hammer out an agreement, and Secretary of State Warren Christopher said the United States would prefer compliance over sanctions.

State Department spokesman Nicholas Burns agreed.

"We're not at the point where somehow there's no time left for them to take any significant action that would resolve this problem. We still hope to resolve it."

Meanwhile, on Capitol Hill, lawmakers are picking up the pressure to enforce sanctions.

"It's time for the talking to stop, and for us to take some actions to protect our intellectual property," said Rep. Nancy Pelosi, D-California.

Correspondent Steve Hurst and Reuters contributed to this report.

From CNN

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Copyright DateRichard R. Wertz