China tightens rules on dual-use nuclear exports

BEIJING, Feb 16 (Reuters) China has tightened its rules on ''dual-use'' nuclear exports with both civilian and military applications, hoping to sell more nuclear technology abroad but fend off Western charges it has helped spread nuclear arms.

The State Council today signed new regulations which show China's responsibility on nuclear non-proliferation and help prevent acts of nuclear terrorism, it said in an announcement on the central government's Web site (www.gov.cn).

The regulations specify that dual-use technology provided by China cannot be used or duplicated for purposes not under the scrutiny of the International Atomic Energy Agency (IAEA), or by countries not in voluntary association with the IAEA.

They prohibit transfer of nuclear technology or equipment to third-party users other than those declared in the export agreement.

They also clarify export procedures and licensing.

The new regulations replace ones dating from 1998, before the September 11, 2001 attacks on New York and Washington increased international fears of nuclear technologies falling into the hands of terrorists.

China has had nuclear weapons since the early 1960s and has long provided nuclear technology to Pakistan, which in recent years has developed nuclear arms -- as has its arch-enemy India.

In 2004, China joined the 45-member Nuclear Suppliers' Group. The group will this year consider whether to approve a deal signed by US president George W Bush that effectively ended a ban on civilian nuclear trade with India, which has not signed the nuclear Non-proliferation Treaty.

Russia in January signed a deal to build more nuclear power plants in India, also provided the Nuclear Suppliers' Group lifts its restrictions on India this year.

Chinese president Hu Jintao in November visited India and Pakistan. Relations with India are warming, despite lingering distrust after a border war in 1962. Bilateral trade between China and India is expected to double to 40 billion dollars by 2010.

While Hu was in Islamabad, China and Pakistan signed a free trade pact that could boost annual trade from 4.26 billion dollars in 2005 to 15 billion dollars within five years. China said it would continue to support Pakistan's nuclear energy programme, but made no commitment to build six new power plants Pakistan wants.

China is developing its own ''pebble bed'' reactor technology, which would help meet its ambitious nuclear expansion plans and reduce the amount of uranium fuel it needs. If successful, the design could compete for new markets against Canadian, French, Russian or US reactor designs.

Last June, China agreed to work together for the peaceful use of nuclear technology with South Africa, which is separately developing a pebble bed reactor and is one of the world's leading producers of uranium.

REUTERS KR KN2154