[This is an EXCELLENT move by the USA. The Russians & Chinese have been spying on the USA for years and acquiring highly sensitive technology under false pretenses. This is brilliant. EXCELLENT STUFF. It might even result in the USA moving ahead of the Russians and Chinese and not allowing them the means to catch up. Jan]

The US government is poised to propose rules that could restrict the ability of Chinese and other foreign nationals to engage in high-level research in the country, a plan that is generating fierce opposition from companies and universities.

The move comes amid growing fears in the US that its relatively open rules allowing foreign nationals to work with sensitive technologies leave the country open to espionage.

Law enforcement and intelligence officials fear China in particular could be using some of its more than 150,000 students in the US to spy on behalf of Beijing.

In a few weeks, the commerce department is expected to respond to a report by its inspector-general, which warned of the espionage risks last year. The inspector-general™s proposal called for an expansion of the rules that restrict the sharing of advanced technologies with foreign nationals.

Under existing law, companies or universities are required to seek a government export licence if they allow citizens from controlled countries, most prominently China, to engage in research involving technologies with potential military uses.

But licences are not required if a Chinese national becomes a citizen or a permanent resident in another country “ such as Canada or the UK “ which is not subject to stringent US export controls.

There are particular concerns about the tens of thousands of Chinese who have taken out citizenship in countries that exchange technology freely with the US.

The proposal under consideration would expand the so-called œdeemed export requirement to cover anyone born in China or other controlled countries such as Iran and North Korea, even if they had taken out citizenship in another country.

The idea has particularly angered US universities, which have seen the enrolment of foreign students drop sharply owing to the stricter visa requirements imposed after the September 11 2001 terror attacks.

International student enrolment at US colleges and universities has fallen by 1.3 per cent in the last academic year, following a 2.4 per cent fall the year before.

œThe most alarming outcome of this proposed rule will be the substantial negative impact on attracting the best and brightest people from round the world to participate in the conduct of basic and applied research, which is of extraordinary social and economic value to the nation, wrote Robert Goldston, director of the Princeton Plasma Physics laboratory, in one of hundreds of comments sent to the commerce department in the past six months.

Lawyers and lobbyists following the debate in the US government say the administration might opt for a less restrictive rule than that proposed in the inspector-general™s report.

A senior commerce department official said that whatever rule was adopted would œstrive to protect national security while meeting the needs of industry and academia.

œControls on the release of technology to foreign nationals in the US must “ and can “ protect national security while allowing business and the academic research community to employ the world™s best minds, no matter their nationality.

Source: Financial Times
URL: http://news.ft.com/cms/s/5a57b68e-5d2f-11da-8…/p>