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Updated January 23, 2023

Chinese Nuclear and Missile Proliferation

The U.S. government has continued to express concerns
about China's record concerning the proliferation of
nuclear- and missile-related technologies to other countries,
with more recent focus on the threat of Chinese acquisition
of U.S.-origin nuclear technology. (See CRS In Focus
IF11050, New U.S. Policy Regarding Nuclear Exports to
China, by Paul K. Kerr and Mary Beth D. Nikitin.) Official
U.S. government reports indicate that the Chinese
government has apparently ended its direct involvement in
the transfer of nuclear- and missile-related items, but
Chinese-based companies and individuals continue to
export goods relevant to those items, particularly to Iran
and North Korea. U.S. officials have also raised concerns
about entities operating in China that provide other forms of
support for proliferation-sensitive activities, such as illicit
finance and money laundering.
Background
China did not oppose new states' acquisition of nuclear
weapons during the 1960s and 1970s, the Department of
State wrote in a declassified January 1998 report to
Congress. According to a 1983 National Intelligence
Estimate (NIE), China had exported nuclear materials
since 1981 that were not subject to International Atomic
Energy Agency (IAEA) safeguards. Beijing did so mainly
to earn hard currency, the estimate assesses, explaining
that the
Chinese became aware in 1979 that they had
insufficient resources for their initially grandiose
modernization program and that they needed to
generate more revenue through expanded foreign
trade. Accordingly, the State Council directed its
subordinate ministries in late 1979 to begin selling
surpluses.
Consequently, according to the NIE, Beijing ended its
abstention from commercial trade in conventional arms
and nuclear materials. During the 1980s and 1990s, China
transferred nuclear and missile technology to other
countries' weapons programs. China provided assistance to
Pakistan's nuclear weapons program and engaged in
nuclear cooperation with Iran. Beijing exported missiles to
Pakistan, Saudi Arabia, and Iran. (For more information,
see CRS Report RL33192, U.S.-China Nuclear
Cooperation Agreement, by Mark Holt, Mary Beth D.
Nikitin, and Paul K. Kerr.)
According to U.S. government reports and official
statements, China significantly curtailed its nuclear- and
missile-related transfers during the 1990s; Beijing also
committed to improving its export controls. For example,
the 1998 State Department report cited above noted China's
1996 pledge to refrain from assisting unsafeguarded nuclear

facilities and 1997 changes to Chinese nuclear export
policy, as well as other Chinese nonproliferation efforts.
The United States has extensive nuclear cooperation with
China, which is governed by a civil nuclear cooperation
agreement, renewed in 2015. (See CRS Report RL33192,
U.S.-China Nuclear Cooperation Agreement.)
The above-described changes in Chinese behavior took
place after the two governments concluded their first
nuclear cooperation agreement in 1985. Laws subsequently
adopted by Congress required, as a condition for U.S.
implementation of the agreement, the President to submit to
Congress certain nonproliferation-related certifications, as
well as a report about Beijing's nonproliferation policies
and practices. President William Clinton stated in a
January 1998 letter to Congress that China had made
substantial strides in joining the international
nonproliferation regime, and in putting in place a
comprehensive system of nuclear-related, nationwide
export controls, since concluding the 1985 agreement.
Beijing acceded in 1992 to the Nuclear Nonproliferation
Treaty (NPT) as a nuclear-weapon state (NWS) and has
voluntary IAEA safeguards on its civil reactors. The treaty
defines NWS as those that exploded a nuclear weapon or
other nuclear explosive device prior to January 1, 1967:
China, France, Russia, the United Kingdom, and the United
States. All other NPT states-parties are nonnuclear-weapon
states. According to the treaty, a NWS is not to transfer
nuclear weapons to any recipient whatsoever or to in
any way ... assist, encourage, or induce any nonnuclear-
weapon state to manufacture or otherwise acquire nuclear
weapons.
China is also a participant in the Nuclear Suppliers Group
(NSG)-a multilateral control regime for nuclear-related
exports. The Missile Technology Control Regime (MTCR)
performs an analogous function for missiles and related
items. China is not an MTCR partner but has agreed to
adhere to the regime's export guidelines.
The Chinese government continues to express support for
the international arms control and nonproliferation regime.
According to a July 2019 Chinese government publication
titled China 's National Defense in the New Era, China
actively participates in international arms control,
disarmament and non-proliferation and objects to arms
race and strives to protect global strategic balance and
stability. Similarly, Fu Cong, Director General of the
Department of Arms Control of China's Ministry of
Foreign Affairs, stated during the December 9-10, 2020,
16th Asian Senior-Level Talks on Non-Proliferation that
China is ready to enhance non-proliferation policy

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