U.S. Defense Bill Targets Use of Chinese Rockets

October 20, 2008 at 7:17 am | Posted in Space Law, Space Law Current Events | Leave a comment

by Joanne Irene Gabrynowicz with the blog faculty

Source: Space News

The U.S. secretary of defense will review whether allowing companies with U.S. defense contracts to launch satellites in China presents security risks under legislation signed into law Oct. 14 by U.S. President George W. Bush.

The law, called the “Duncan Hunter National Defense Authorization Act for Fiscal Year 2009,” mainly deals with U.S. defense programs and policies.

But it includes an order that the U.S. defense secretary investigate “whether there are any security risks associated” when companies that do business with U.S. Defense Department participate in “the development or manufacture of satellites for launch from the People’s Republic of China; and the launch of satellites” from China.

Satellite manufacturer Thales Alenia Space of Europe has built satellites that are free of U.S. parts, which are effectively barred from being shipped to China under U.S. International Traffic in Arms Regulations (ITAR) rules. Another company, OHB Technology of Germany, is designing a new satellite line with European Space Agency funds that is intended to include a so-called ITAR-free option for customers wanting to launch from China.

Space Systems/Loral, a major U.S. commercial satellite builder, has complained to U.S. government authorities that the ITAR-free option gives these European contractors an advantage because China’s rockets are less expensive to use than U.S., European or Japanese rockets.