Brian Bradley
NS&D Monitor
5/15/2015
Lawmakers raised various concerns over the proposed renewal of a 30-year civil nuclear agreement with China during a hearing of the Senate Foreign Relations Committee this week. The deal is currently set to expire at the end of this year. Committee Republicans and Democrats expressed concerns about possible Chinese intentions including providing nuclear technology to other countries and using uranium enrichment to gain a military advantage. Sen. Bob Menendez (D-N.J.) cited Chinese violations of Nuclear Suppliers Group (NSG) export rules by working on Pakistani nuclear reactors. Tom Countryman, State Department Assistant Secretary of the Bureau of International Security and Nonproliferation, testified in response that the ongoing civil agreement prohibits the transfer of U.S. nuclear technology to any other nation without U.S. consent. “There’s, I think, a difference between violating NSG rules … and violating a 123 agreement, particularly when this agreement, unlike the agreement it replaces, has specific laws that call for temporary suspension or permanent suspension in case of violation,” he said. Menendez called for a clearer definition of U.S. nonproliferation objectives. “I was always an admirer that U.S. policy was about actually stopping nuclear proliferation, not managing it,” he said.
One concern that committee Chair Sen. Bob Corker (R-Tenn.) cited was China’s ability to prevent illicit transfer of nuclear technology. “I would like the Administration to specifically address why Congress should feel confident that China will prevent illicit transfers going forward,” he said. Corker and Sen. Ben Cardin (D-Md.), mentioned the business benefits the deal has provided, including creation of jobs for Americans. For $8 billion in 2007, Westinghouse sold to China four reactors, which the company is still building. But American business profits could be the good side of a double-edged sword. “We know China has an aggressive move into many markets, and the United States used to have the leading share,” Cardin said. “The transfer of the most advanced U.S. technology may provide China the keys for the domination of the world nuclear power industry. That could cost us jobs.”
Chinese Nonproliferation ‘Could Be Better’
On April 20, the Obama Administration submitted the nuclear cooperation bill to Congress for approval. During this week’s hearing, Corker cited the Nonproliferation Assessment Statement (NPAS) accompanying the agreement that stated Chinese State-Owned Enterprises transferred proliferation-sensitive dual-use materials and technologies, which drew U.S. sanctions. Countryman said China’s nonproliferation record was improving, but "could be better." In prepared remarks, he stated that the renewal could allow the United States to influence the Chinese government’s approach to nonproliferation. “We strongly believe that implementing this agreement will better position the United States to influence the Chinese Government to act in a manner that advances our global nuclear nonproliferation objectives,” he told the committee. “Conversely, failing to do so would set us back immeasurably in terms of access and influence on issues of nonproliferation and nuclear cooperation. The current China 123 agreement has allowed for, and the agreement will continue to facilitate, deepened cooperation with China on nonproliferation, threat reduction, export control, and border security.”
Countryman underscored that the agreement is not zero-sum, in his view. “This agreement is not a favor that we give to China, or that China gives to us,” he said. “It is in the mutual interests of both countries.” Without agreement renewal, U.S. businesses would be cut off from the Chinese nuclear market, which composes one-third of the world’s nuclear power plants.
‘No Question’ China Will Use Nuke Tech for Military Gain
Furthermore, concerns abound about the security implications of the civil nuclear agreement, as Corker said “there is no question” that China will utilize the power plants to accelerate military modernization. “There’s no doubt in the historical record that China will make every attempt to benefit from technology transfer, whether it be economic or commercial, or military field,” Countryman said. “Our job, which only begins with this 123 agreement, but as an actual materiality in the licensing procedure, is to frustrate that effort. We have every intention of doing so and believe we have the means to do so.”
