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Watchdog Group Sees Links Between ‘Validated’ Exporters, Arms Violators
A U.S. research and public education group says moves last year by the Commerce Dept. to relax some export control regulations under a new “Validated End User” (VEU) program have allowed two companies with ties to arms control regulation violators special privileges to bypass review for sales to China of sensitive technology that could be used for military purposes. The first, Shanghai Hua Hong NEC Electronics Company, is linked through a parent company to a separate subsidiary that was cited in 2006 for unapproved sales to Iran and/or Syria.