*American Capital Markets*
The Iran-Libya Sanctions Act forbids foreign companies that invest in Iran's energy sector from tapping American capital markets. The New York Stock Exchange lists 33 Chinese companies, many of which maintain ownership by or close ties with the communist government.
Our government bars American companies from doing business with Iran, but the Bush regime has recently opened American capital markets to foreign companies that do business with Iran. Even though, it violate American law
The United States has been trying to isolate Iran, but the Chinese are doing business with them. A state-owned Chinese oil company CNOOC has pledged $16 billion to develop Iranian natural gas fields, thereby disregarding American foreign policy and undermining our government's stated goal.
Congress’s goal was to cut off the extra flow of funds that were generated by the Iran oil and gas sector so that we could limit their ability to fund terrorism and to develop weapons of mass destruction.
The State Department says, "We think this is a particularly bad time to be initiating major new commercial deals with Iran. We have raised our concerns about this reported deal with the oil company and the Chinese authorities."
The New York Stock Exchange says since no action has been taken against CNOOC, "We don't comment on hypotheticals." But as the Treasury Department aggressively tries to isolate Iran, foreign companies using American capital markets are injecting funds into a country with a long list of dangerous ambitions.
By law, this proposed CNOOC deal requires Bush to launch an investigation to determine which sanctions apply here. Congress has begun looking into the matter, which is on the top of the agenda for the House Foreign Relations Committee.
*Technology to China*
Communist China's demonstrated ability to launch a satellite-killing missile has led to calls for tougher limits on the so-called dual-use technology that American companies have been selling to the Chinese for years.
This anti-satellite test is a textbook example of the dangers of American and Western technology leaking to China. The technology transfer has been more of a torrent than a leak, despite an arms embargo that's been in place since the massacre at Tiananmen Square in 1989. China has swiftly modernized its military with the American know-how and technology. Although, the Commerce Department wants to strengthen those export controls, business interests are resisting. They insist our allies will sell China high-technology, if we won't.
Over the objections of U.S. multinational corporations and the communist Chinese government, the U.S. Commerce Department has apparently decided to reverse its policy direction of recent years and is preparing to toughen export controls of U.S. technology to China.
We cannot unilaterally impose export controls on any country and expect them to work unless we have the support of our allies. In 2005, only six percent of American imports to China required special licenses, and a mere $12.5 million in exports were declined.
The Chinese leadership is quick to remind the U.S. that, in its judgment, the best way to rein in the staggering deficit is to sell more high technology to China. There hasn’t been an uproar in Congress, because too much technology has already passed and export controls have become a moot point.