Clarification on Telecommunications Exports to the People’s Republic of China

Recently there have been reports in the press about a change in U.S. policy regarding Code Division Multiple Access (CDMA) exports to China. There has been no change in U.S. policy. As indicated by Secretary Daley during his most recent trip to China, the U.S. Government supports and encourages the use of CDMA technology in China’s civilian telecommunications system.

As for export license requirements for CDMA equipment, most, if not all, CDMA cellular telephone systems do not require licenses for export to China. Under some limited circumstances, licenses may be necessary. For example, licenses would be required if the exporter "knows or is informed" that an export is destined for prohibited activities, such as programs involving missiles or chemical, biological, or nuclear weapons. A license would be necessary as well if the system includes the capability for voice or data encryption.

Certain equipment, whether or not incorporated into CDMA systems, remains subject to license requirements; namely, radio equipment with user programmable spreading codes or a total transmitted bandwidth that is 100 or more times the bandwidth of any one information channel and in excess of 50Khz. Like its partners in the Wassenaar Arrangement, the United States also controls CDMA production and development technology (ECCN 5E001). License applications to export controlled equipment and technology are reviewed on a case-by-case basis. In addition, use of license exception CIV is not available to export equipment if the customer is a military end-user or if the product is destined for military end-uses.

In summary, the current policies and regulations which permit most CDMA systems to be exported to China without a license have not changed, and no changes have been proposed.