2011 report to congress - U.S.-China Economic and Security Review ...

dkrause on DSKHT7XVN1PROD with $$_JOBRECOMMENDATIONSChinese State-owned Enterprises and U.S.-China BilateralInvestmentThe Commission recommends that:• Congress urge the administration to employ all necessary remediesauthorized by WTO rules to counter the anticompetitiveand trade-distorting effects of the Chinese government’s extensivesubsidies for Chinese companies operating in China andabroad.• Congress assess the extent to which existing laws provide for effectiveremedies against the anticompetitive actions of Chinesestate-owned or state-invested enterprises operating in the U.S.market. Appropriate remedies, if they are not readily available,should also be considered.• Congress urge the administration to include in any bilateral investmenttreaty with China the principles of nondiscriminationand competitive neutrality between SOEs and other state-investedor -supported entities and private enterprises.• Congress assess China’s new national security review process forforeign investment to determine whether it is being used as atrade barrier.• Congress direct the U.S. Department of Commerce to report annuallyon Chinese investment in the United States including,among other things, data on investment in the United States byChinese SOEs and other state-affiliated entities.• Congress direct the U.S. Securities and Exchange Commission torevise its protocols for reviewing filings by foreign entities listedon or seeking to be listed on the U.S. stock exchanges. The Securitiesand Exchange Commission should develop country-specificdata to address unique country risks to assure that U.S. investorshave sufficient information to make investment decisions.The commission should focus, in particular, on state-owned and-affiliated companies, and subsidies and pricing mechanisms thatmay have material bearing on the investment.• Congress urge the administration to review federally subsidizedcontracts provided under the American Recovery and ReinvestmentAct of 2009 and report on the extent to which Chinese-producedgoods and services were procured using such funds.• Congress urge the administration to direct the USTR to move aggressivelyto bring more WTO cases against China for violatingits obligations under the WTO Subsidies Agreement.(129)VerDate Nov 24 2008 13:46 Nov 10, 2011 Jkt 067464 PO 00000 Frm 00141 Fmt 6601 Sfmt 6601 G:\GSDD\USCC\2011\067464.XXX 067464