WASHINGTON, D.C. –Representative Edward J. Markey (D-MA), chairman of the House Telecommunications and the Internet Subcommittee and the founder of the House Bipartisan Task Force on Nonproliferation, responded today to a media report in The Washington Times on the tightening of controls over a controversial Department of Commerce program that promotes high-technology national security-related exports to China.

The so-called Validated End-User (VEU) program, which according to the press report will now either be dramatically revamped or scrapped entirely, had allowed a number of Chinese firms to import certain sensitive U.S. technologies without an export control license. Several of those firms were later shown to have close ties to the Chinese military. Rep. Markey began an investigation of the VEU program in January 2008.

"From day one, the idea of fast-tracking sensitive technology exports has been foolish and potentially very dangerous for our national security.  Almost a year ago, I called on the Commerce Department to explain why companies closely tied to the Chinese military should be allowed to import sensitive U.S. items without the standard export control license.  I am pleased that the Commerce Department has finally acknowledged that real problems exist and this misguided program will either be fixed or thrown away," said Rep. Markey.

In 2007, the Department of Commerce designated five Chinese corporations as "Validated End-Users," a new designation authorizing them to import certain sensitive U.S. technologies without an export control license. Export control licenses are used to prevent diversion of such sensitive technologies to military users. The Commerce Department had intended to expand the VEU program to other countries besides China.  It is not yet clear whether the Department has also altered that plan.

"Ending the VEU program for China is not enough; we need to scrap this concept of ‘validated users' completely.  This program shouldn't be shut down in China just to start up in India or elsewhere. These technologies are too sensitive to allow  such a blatant degradation of our export controls," Rep. Markey concluded.

Rep. Markey's January 29, 2008 and March 20, 2008  correspondence with the Department of Commerce about the VEU program is available here: http://markey.house.gov/index.php?option=com_content&task=view&id=3298

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