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The US took most of the restrictions off high technology exports such as telecommunications equipment and computers to China and former Soviet bloc countries. Government officials report the decision will not affect national security because most of the goods that were part of the export controls are available from international suppliers as well. Export-controls were lifted for computers that operate slower than 1,000 million theoretical operations per second (MTOPS). North Korea is still covered by the export ban because the government believes it is designing and developing nuclear weapons. Industry executives are pleased with the turn of events and companies such as AT&T are now able to freely export their telecommunications equipment to Russia and China.

The easing of export restrictions on high technology products and computers to Eastern Europe could considerably boost sales of those products for many US manufacturers. Digital Equipment states that the lifting of strict export controls by the Coordinating Committee on Multilateral Export Controls, or Cocom, is likely to increase its international exports. Cocom was originally formed to control exports of sensitive technology to Eastern Europe, but recent political changes in the region have led to an about face from the member countries, which include the nations of the North Atlantic Treaty Organization (NATO), Australia, and Japan. IBM and some other companies are not as exuberant as DEC, being unsure the new rules go far enough.

The United States and Japan have agreed to a new set of licensing regulations for the international export of supercomputers. The new regulations allow for the exporting of high-powered computers to allied countries in the industrialized world, but they restrict export to 30 or so countries that have not signed the nuclear-nonproliferation agreement. The restrictions also apply to countries thought to be developing long range missile capabilities. For friendly countries, only routine licenses will be required unless the machines exceed 195 million theoretical operations per second. That level is also considered the minimum speed required for designation as a 'supercomputer.'

The United States Department of Commerce is allowing U.S. exporters to ship all but the most sensitive high-technology products to U.S. allies without first obtaining licenses. The new rules will reduce 20,000 export licenses a year and help speed up deliveries of $30 billion in annual shipments of computers, semiconductor-manufacturing equipment, precision instruments, telecommunications equipment and other high technology equipment. Licensing requirements will remain for certain critical items including X-ray lithography systems, underwater sensing equipment and cryptographic devices. The new rules, to take effect in Jul 1990, are expected to make U.S. exporters more competitive in the international marketplace.

The official termination of the duties of the multinational body called Coordinating Committee on Multilateral Export Controls has opened the opportunity for more extensive technology sales to hitherto blacklisted countries such as China. Although the termination does not remove restrictions on direct sales to the military of those countries, it will make available to their commercial sectors high-quality telecommunications equipment. Many Western companies will likewise benefit from the lifting of the ban. US firm AT and T, for instance, has already made $70 million in sales of equipment to China.

US firms are concerned over the potential adverse effects on their businesses in China of a 700-page report by a special committee of the House of Representatives urging for tighter controls on high-technology exports to the Asian country. A committee headed by Rep Christopher Cox recommended stricter scrutiny of exports to China as it alleged that the latter stole ideas from US laboratories in building its nuclear weaponry. The twin worries of US companies are that the US will impose tighter control on exports to China and that Chinese firms will prefer non-US-made products to do away with the risks and hassles.