Officials say lifting embargo would jeopardise European defence companies' chances of winning future business

US Department of Defense officials have warned of dire consequences for transatlantic industrial co-operation if the European Union lifts its embargo on arms sales to China. The strongly worded warnings came as European leaders discussed lifting the 12-year-old ban at last week's EU summit.

On the eve of the EU summit, European officials failed to convince the USA that proposed safeguards would be enough to prevent the sale of sensitive technology to China if the arms embargo is lifted. Speaking at last week's AIAA Defense 2005 conference in Washington DC, senior DoD officials said lifting the ban would make it even more difficult for European defence firms to penetrate the US defence market.

"If you are a foreign company, and I know you sell engines, radars or electronic-warfare jammers to China, and you want to team with an American company to do work on a Defense Department programme, I have to ask some very hard questions," said Lisa Bronson, deputy undersecretary of defence for technology security policy and counterproliferation. "How do I know that JSF [Joint Strike Fighter] technology won't turn up in a Chinese fighter jet? I have to be absolutely sure that it won't. If I am not, it's a risk I'm not prepared to take."

Officials warned that European governments do not understand how seriously US Congress views arms exports to China. "Washing-ton and Europe are talking past each other until a crisis is reached," said Alfred Volkman, director, international co-operation for the US undersecretary of defence, acquisition, technology and logistics. "This is an extremely sensitive issue," said Gregory Suchan, deputy assistant secretary for defence trade, US Bureau of Political-Military Affairs, adding: "You can count on it – Congress will legislate on this, and when they spank, they will spank hard."

Whatever the EU decision, the UK's BAE Systems says it will not jeopardise its business with the DoD, which will make up more than half its defence sales once the takeover of US armoured vehicle manufacturer United Defense Industries is approved. "For my company, it's a no-brainer," chief executive Mike Turner told the conference. "Companies make their own decisions, and nothing forces us to sell to China."

Entering last week's summit, the EU was split on whether to give in to Chinese pressure and end the embargo imposed after the 1989 Tiananmen Square massacre. France and Germany support lifting the ban, but the UK, Sweden and others have been more reticent. The EU appeared close to ending the embargo until China earlier this month passed an anti-secession law authorising force if Taiwan seeks independence.

European leaders agreed in December to decide by June on whether to lift the ban, and EU foreign policy chief Javier Solana supports ending the embargo. French president Jacques Chirac has tried to quell US and Japanese fears that Europe would flood China with arms.

GRAHAM WARWICK/WASHINGTON DC

Source: Flight International