The bilateral seminar on export controls held earlier this month in Washington was a good beginning to this process, and we hope to expand our dialogue with the Chinese to reach greater mutual understanding and cooperation in export controls and end use visits. Satellite exports are an example of how effective dual-use export controls allow American exporters to compete and win without risk to our national security. Our controls on satellite exports to China are extensive and involve a number of measures to reduce the risk of unauthorized transfers of technology, including a bilateral technology safeguards agreement and the presence of Department of Defense monitors at Chinese launch sites. Also, sensitive military satellite technology remains on the U.S. Munitions List administered by the Department of State. Allowing China to launch U.S.-made satellites, under these safeguards, has been an important factor in helping U.S. companies dominate the satellite market.
Most sales are to U.S. or third country firms who have chosen to purchase Chinese launch services.
The U.S. has the lion's share of this market. Thirty-five commercial launches took place in 1997, by France, the United States, Russia and China, and we expect more in the years ahead. Commercial satellites are a key industry sector and vital to the health of the American economy as a whole. Our ability to maintain our leadership in this sector also has important implications for our military, which utilizes the same technology and depends on healthy American companies to meet its needs. Jurisdiction for licensing exports of communications satellites was transferred from the State Department to Commerce in November, 1996.