Cox Report

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The Report of the Select Committee on U.S. National Security and Military/Commercial Concerns with the People's Republic of China, commonly known as the Cox Report after Representative Chris Cox, is a classified U.S. government document reporting on the People's Republic of China's covert operations within the United States during the 1980s and 1990s. Specifically, the report (released January 3, 1999) focused on China's alleged theft of design information regarding the U.S.'s most advanced thermonuclear weapons, MIRV, and missile technology. The Chinese government, which had recently fended off accusations it attempted to influence American politics by donating funds to U.S. politicians and political parties in violation of U.S. law, called the allegations "groundless" <ref name=response>"China rejects nuclear spying charge", BBC, April 22, 1999</ref>.

The report was the work product of the Select Committee on U.S. National Security and Military/Commercial Concerns with the People's Republic of China. This special committee, created by a 409-10 vote of the U.S. House of Representatives on June 18, 1998, was tasked with the responsibility of investigating whether technology or information was transferred to the People's Republic of China that may have contributed to the enhancement of the nuclear-armed intercontinental ballistic missiles or to manufacture of weapons of mass destruction.

The Chairman of the Committee was Republican Rep. Chris Cox of California, whose name became synonymous with the committee's final report. Four other Republicans and Democrats served on the panel, including Representative Norm Dicks, who served as the senior Democratic member. The committee's final report was approved unanimously by all 9 members. The redacted version of the report was released to the public May 25, 1999.

While several groups, including the People's Republic of China, contend that the Report is overstated or inaccurate, its authors and supporters maintain that its gist is undeniable. The report's basic findings were as follows, quoted from the above document's opening summary:

The People's Republic of China (PRC) has stolen design information on the United States' most advanced thermonuclear weapons. The Select Committee judges that the PRC's next generation of thermonuclear weapons, currently under development, will exploit elements of stolen U.S. design information. PRC penetration of our national nuclear weapons laboratories spans at least the past several decades and almost certainly continues today.

The PRC has stolen or otherwise illegally obtained U.S. missile and space technology that improves PRC military and intelligence capabilities.

In response, the PRC has maintained that its nuclear technology was indigenously developed and was not the result of espionage.

The Cox Report's release prompted major legislative and administrative reforms. More than two dozen of the Select Committee's recommendations were enacted into law, including the creation of a new National Nuclear Security Administration to take over the nuclear weapons security responsibilities of the United States Department of Energy. At the same time, no person has ever been convicted of providing nuclear information to the PRC, and the one case that was brought in connection to these charges, that of Wen Ho Lee, fell apart.

Two of the U.S. companies named in the report – Loral Space and Communications Corp. and Hughes Electronics Corp. – were later successfully prosecuted by the federal government for violations of U.S. export control law, resulting in the two largest fines in the history of the Arms Export Control Act. Loral paid a $14 million fine in 2002<ref name=loralfine>Mintz, John, "2 U.S. space giants accused of aiding China Hughes, Boeing allegedly gave away missile technology illegally", Washington Post, Jan. 1, 2003</ref>, and Hughes paid a $32 million fine in 2003.<ref name=hughesfine>"Boeing, Hughes settle technology transfer charges", Associated Press, March 6, 2003</ref> Loral CEO Bernard Schwartz was a large donor to President Clinton's 1996 re-election bid.<ref name=liudenial>"Chinese Aerospace Official Denies Giving To Dems", CNN.com, May 21, 1998</ref>