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

More documents

Recommendations

Info

dkrause on DSKHT7XVN1PROD with $$_JOB140182. Thilo Hanemann, ‘‘It’s Official: Chinese FDI in the U.S. is Soaring,’’ ChinaInvestment Monitor (New York, NY: The Rhodium Group, LLC: August 25, 2011).http://rhgroup.net/china-investment-monitor/.183. Thilo Hanemann, ‘‘It’s Official: Chinese FDI in the U.S. is Soaring,’’ ChinaInvestment Monitor (New York, NY: The Rhodium Group, LLC: August 25, 2011).http://rhgroup.net/china-investment-monitor/.184. U.S. Department of the Treasury, ‘‘Major Foreign Holders of Treasury Securities’’(Washington, DC: September 16, 2011). http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt.185. For more information about CIC, its creation and mission, see U.S.-ChinaEconomic and Security Review Commission, ‘‘China’s Capital Investment Vehiclesand Implications for the U.S. Economy and National Security,’’ 2008 Annual Reportto Congress (Washington, DC: U.S. Government Printing Office, November 2008),pp. 43–68.186. Lingling Wei, Bob Davis, and Dinny McMahon, ‘‘China Fund Confident ofGetting More Cash,’’ Wall Street Journal, May 13, 2011.187. U.S. Department of the Treasury, Report on Foreign Portfolio Holdings ofU.S. Securities as of June 30, 2010 (Washington, DC: April 2011). http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/shla2010r.pdf.188. Kevin Davies, ‘‘Outward [Chinese] FDI and its Policy Context’’ (New York:Vale Columbia Center, 2010), pp. 259–262.189. Kevin Davies, ‘‘Outward [Chinese] FDI and its Policy Context’’ (New York:Vale Columbia Center, 2010), p. 259.190. Derek Scissors (research fellow, The Heritage Foundation), e-mail interviewwith Commission staff, March 2, 2011.191. Derek Scissors (research fellow, The Heritage Foundation), e-mail interviewwith Commission staff, March 2, 2011.192. Ministry of Commerce of the People’s Republic of China, 2009 StatisticalBulletin of China’s Outward Foreign Direct Investment (Beijing, China: 2010), p. 12.http://hzs.mofcom.gov.cn/accessory/201009/1284339524515.pdf. The $38.2 billion figureis attributed to zhongyang qiye, or ‘‘central enterprise,’’ which refers specificallyto SOEs under the direct control of the central government, as opposed to the moregeneric guoyou qiye, which simply means ‘‘state-owned enterprise.’’193. For more information on China’s investment patterns, see NargizaSalidjanova, ‘‘Going Out: Overview of China’s Outward Foreign Direct Investment’’(Washington, DC: USCC Staff Research Report, March 30, 2011). http://www.uscc.gov/researchpapers/2011/GoingOut.pdf.194. Daniel H. Rosen and Thilo Hanemann, An American Open Door? Maximizingthe Benefits of Chinese Foreign Direct Investment (New York, NY: Asia Society SpecialReport, May 2011), p. 33.195. The authors conclude that the high share of deal value attributable to SOEsis mostly due to three large-scale acquisitions and one big greenfield project bystate-owned firms: CIC’s stake in AES ($2.5 billion), the Tianjin Pipe steel plant ($1billion), CNOOC’s stake in the Ford Eagle Shale project ($1 billion), and PacificCentury’s acquisition of Nexteer Automotive ($450 million). See Daniel H. Rosenand Thilo Hanemann, An American Open Door? Maximizing the Benefits of ChineseForeign Direct Investment (New York, NY: Asia Society Special Report, May 2011),p. 33.196. Paritosh Bansal, Soyoung Kim, and Benjamin Lim, ‘‘Special Report: The U.S.and China Start an M&A [mergers and acquisitions] Cold War,’’ Reuters, April 12,2011.197. Edward M. Graham and David M. Marchick, U.S. National Security andForeign Direct Investment (Washington, DC: Peterson Institute for International Economics,May 2006), p. 105.198. Edward M. Graham and David M. Marchick, U.S. National Security andForeign Direct Investment (Washington, DC: Peterson Institute for International Economics,May 2006), p. 107.199. U.S.-China Economic and Security Review Commission, Hearing on ChineseState-Owned Enterprises and U.S.-China Bilateral Investment, testimony of DanielRosen, March 30, 2011.200. John Burke, ‘‘The United States Welcomes Chinese Foreign Direct Investment—TheHandful of Deals Blocked by CFIUS are Aberrant,’’ China-U.S.-TradeLaw blog, February 7, 2011. http://www.chinaustradelawblog.com/2011/02/articles/investment/the-united-states-welcomes-chinese-foreign-direct-investment-the-handful-ofdeals-blocked-by-cfius-are-aberrant/.201. Clint Shields, ‘‘Pipeline to the World,’’ Texas Rising (March/April 2009).http://www.texasahead.org/texasrising/tr0903/.VerDate Nov 24 2008 13:46 Nov 10, 2011 Jkt 067464 PO 00000 Frm 00152 Fmt 6601 Sfmt 6621 G:\GSDD\USCC\2011\067464.XXX 067464
dkrause on DSKHT7XVN1PROD with $$_JOB141202. Felicity Carus, ‘‘Suntech Chief Praises China’s Policy Incentives, BuildsPlant in Arizona,’’ AOL Energy, May 17, 2011.203. Paritosh Bansal, Soyoung Kim, and Benjamin Lim, ‘‘Special Report: The U.S.and China Start an M&A [mergers and acquisitions] Cold War,’’ Reuters, April 12,2011.204. U.S.-China Economic and Security Review Commission, Hearing on ChineseState-Owned Enterprises and U.S.-China Bilateral Investment, testimony of DanielRosen, March 30, 2011. Also see Daniel H. Rosen and Thilo Hanemann, An AmericanOpen Door? Maximizing the Benefits of Chinese Foreign Direct Investment (NewYork, NY: Asia Society Special Report, May 2011), pp. 66–67.205. Michael Wines, ‘‘China Fortifies State Businesses to Fuel Growth,’’ New YorkTimes, August 29, 2010.206. Wen Jiabao, 2010 Report on the Work of the Government (Beijing, China:March 5, 2010).207. Office of the U.S. Trade Representative, ‘‘United States Details China andIndia Subsidy Programs in Submission to WTO’’ (Washington, DC: October 6, 2011).http://www.ustr.gov/about-us/press-office/press-releases/2011/october/united-states-details-china-and-india-subsidy-prog.208. U.S.-China Economic and Security Review Commission, ‘‘An Assessment ofChina’s Subsidies to Strategic and Heavyweight Industries’’ (Washington, DC: CapitalTrade, Incorporated, March 2009), pp. ix-x.209. U.S.-China Economic and Security Review Commission, Hearing on ChineseState-Owned Enterprises and U.S.-China Bilateral Investment, testimony of DerekScissors, March 30, 2011.210. U.S.-China Business Council [USCBC], USCBC 2010 Member Priorities SurveyResults (Washington, DC: November 17, 2010), pp. 1, 9. http://www.uschina.org/public/documents/2010/membership_survey.pdf.211. U.S. Department of the Treasury, ‘‘The 2011 U.S.-China Strategic and EconomicDialogue U.S. Fact Sheet—Economic Track’’ (Washington, DC: May 10, 2011).http://www.treasury.gov/press-center/press-releases/Pages/TG1172.aspx.212. According to the Bureau of Economic Analysis, Chinese majority-ownednonbank affiliates in the United States employed 4,300 U.S. workers in 2009 (mostrecent data available).213. Woodrow Wilson Center for International Scholars, ‘‘Chinese Foreign DirectInvestment: Is It a Threat to the United States, Domestically or Globally?’’ (Washington,DC: June 21, 2011). http://www.wilsoncenter.org/index.cfm?topic_id=514556&fuseaction=topics.event_summary&event_id=700288.214. Scott Otteman, ‘‘Chamber Seeks U.S. Effort to Pry China Open to More ForeignInvestment,’’ Inside U.S.-China Trade, July 13, 2011.215. Wayne M. Morrison, ‘‘China-U.S. Trade Issues’’ (Washington, DC: CongressionalResearch Service, June 2, 2011), pp. 16–17.216. Cheng Li, ‘‘China’s Midterm Jockeying: Gearing Up for 2012 (Part 4: TopLeaders of Major State-Owned Enterprises),’’ China Leadership Monitor 34(2011):5–8.217. European Union Chamber of Commerce in China, Public Procurement inChina: European Business Experiences Competing for Public Contracts in China(Beijing, China: April 2011), p. 15. This figure includes public works projectssuch as water, transportation, telecommunications, and energy as well as governmentprocurement. http://www.europeanchamber.com.cn/images/documents/marketingldepartment/beijing/publications/2011/PP%20Study%20EN%20Finall0421.pdf.218. U.S. International Trade Commission, ‘‘China: Effects of Intellectual PropertyInfringement and Indigenous Innovation Policies on the U.S. Economy’’ (Washington,DC: May 2011).219. Jiang Zemin, ‘‘The Government Procurement Law of the People’s Republicof China (order of the President No. 68),’’ Chinese Government’s Official Web Portal,June 29, 2002. http://www.gov.cn/english/laws/2005-10/08/contentl75023.htm.220. Chinese Government’s Official Web Portal, ‘‘China issues S&T [scientific andtechnology] development guidelines,’’ February 2006; State Council of the People’sRepublic of China, Outline of the National Medium- and Long-Term Program onScientific and Technological Development (2006–2020) (Beijing, China: February 9,2006). http://www.gov.cn/english/2006-02/09/contentl183426.htm.221. Chinese Government’s Official Web Portal, ‘‘China issues S&T [scientific andtechnology] development guidelines,’’ February 2006; State Council of the People’sRepublic of China, Outline of the National Medium- and Long-Term Program onScientific and Technological Development (2006–2020) (Beijing, China: February 9,2006). http://www.gov.cn/english/2006-02/09/contentl183426.htm.222. U.S.-China Economic and Security Review Commission, Hearing on China’sIntellectual Property Rights and Indigenous Innovation Policy, written testimony ofVerDate Nov 24 2008 13:46 Nov 10, 2011 Jkt 067464 PO 00000 Frm 00153 Fmt 6601 Sfmt 6621 G:\GSDD\USCC\2011\067464.XXX 067464
Page 1 and 2:
12011REPORT TO CONGRESSof theU.S.-C
Page 3 and 4:
U.S.-CHINA ECONOMIC AND SECURITY RE
Page 5 and 6:
dkrause on DSKHT7XVN1PROD with $$_J
Page 7 and 8:
CONTENTSPageTRANSMITTAL LETTER TO T
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
23Figure 1:China’s Share of the U
Page 33 and 34:
25The weakness in U.S. exports of a
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
31Table 3:RMB Bond Issuances by Mul
Page 41 and 42:
Page 43 and 44:
35of bilateral negotiations under t
Page 45 and 46:
37Stonewalling the WTO: A Case Stud
Page 47 and 48:
39that China’s existing system of
Page 49 and 50:
41now. Because the structures of th
Page 51 and 52:
43How Big Is China’s State Sector
Page 53 and 54:
45Fortune Global 500, compared to j
Page 55 and 56:
47panies are less profitable, after
Page 57 and 58:
49erate primarily within state-cont
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
57Figure 1: Chinese FDI Stock in th
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
63U.S. firms with sensitive technol
Page 73 and 74:
65Addendum I: SASAC Companies, Larg
Page 75 and 76:
67Addendum I: SASAC Companies, Larg
Page 77 and 78:
69dkrause on DSKHT7XVN1PROD with $$
Page 79 and 80:
71January 2010, the heads of 19 U.S
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
77cause Beijing had sought to exclu
Page 87 and 88:
Page 89 and 90:
81China in Search of Western Techno
Page 91 and 92:
83scious policy seeking to drive Ch
Page 93 and 94:
Page 95 and 96:
Page 97 and 98: 89Like previous plans, the 12th Fiv
Page 99 and 100: dkrause on DSKHT7XVN1PROD with $$_J
Page 103 and 104: 95Consultative Conference National
Page 107 and 108: 99panies account[ed] for fully 7 pe
Page 109 and 110: 101Dr. Shih has testified before th
Page 111 and 112: 103ment subsidies, which in turn wi
Page 113 and 114: 105Addendum II: Figures 1-2Figure 1
Page 121 and 122: 113drivers cited increased fuel pri
Page 131 and 132: 123uating from college and hoping t
Page 139 and 140: 131unfairly or unjustifiably harm U
Page 147: dkrause on DSKHT7XVN1PROD with $$_J
Page 169 and 170: 161gress, the DoD noted that China
Page 173 and 174: 165eral U.S. military policies, inc
Page 175 and 176: 167Figure 1:Territorial Disputes in
Page 179 and 180: 171provides guidelines for dealing
Page 181 and 182: 173network exploitations to facilit
Page 189 and 190: 181ligence, surveillance, and recon
Page 195 and 196: 187Therefore, the PLA maintains the
Page 197 and 198: 189Of import, the PLA’s geographi
Page 199 and 200:
Page 201 and 202:
Page 203 and 204:
Page 205 and 206:
197ther moves toward independence,
Page 207 and 208:
199trates the depth of China’s sp
Page 209 and 210:
201Figure 2:Representation of Beido
Page 211 and 212:
Page 213 and 214:
205ganization, modeled on the Europ
Page 215 and 216:
207China’s leadership also places
Page 217 and 218:
Page 219 and 220:
211[General Armaments Department] p
Page 221 and 222:
213Table 2: Select Chinese Satellit
Page 223 and 224:
215weapons or coorbital satellite w
Page 225 and 226:
217Malicious Cyber ActivitiesDirect
Page 227 and 228:
Page 229 and 230:
RECOMMENDATIONSChina’s ‘‘Area
Page 231 and 232:
Page 233 and 234:
Page 235 and 236:
Page 237 and 238:
Page 239 and 240:
Page 241 and 242:
Page 243 and 244:
Page 245 and 246:
Page 247 and 248:
239320. Chang Xianqi, Military Astr
Page 249 and 250:
Page 251 and 252:
243woman Jiang Yu simply expressed
Page 253 and 254:
245Table 1:Timeline of Sino-North K
Page 255 and 256:
Page 257 and 258:
249China also provides economic sup
Page 259 and 260:
251economic and social strains woul
Page 261 and 262:
Page 263 and 264:
255Iran’s South Pars Gas Field af
Page 265 and 266:
257When asked by Commissioners abou
Page 267 and 268:
Page 269 and 270:
Page 271 and 272:
Page 273 and 274:
Page 275 and 276:
Page 277 and 278:
Page 279 and 280:
Page 281 and 282:
Page 283 and 284:
Page 285 and 286:
Page 287 and 288:
Page 289 and 290:
281trade, and dispute settlement. 2
Page 291 and 292:
Page 293 and 294:
Page 295 and 296:
287of Request to the United States
Page 297 and 298:
289fense, since its current fleet o
Page 299 and 300:
Page 301 and 302:
Page 303 and 304:
Page 305 and 306:
Page 307 and 308:
Page 309 and 310:
Page 311 and 312:
Page 313 and 314:
Page 315 and 316:
Page 317 and 318:
Page 319 and 320:
Page 321 and 322:
Page 323 and 324:
Page 325 and 326:
Page 327 and 328:
3190aRCRD&ss=Hong+Kong&s=News; Pete
Page 329 and 330:
Page 331 and 332:
323mation Office. Day-to-day superv
Page 333 and 334:
Page 335 and 336:
327Although the slogans change over
Page 337 and 338:
Page 339 and 340:
Page 341 and 342:
Page 343 and 344:
335What Constitutes a ‘‘Core In
Page 345 and 346:
Page 347 and 348:
339Selected CAIFC/CPD Track Two Exc
Page 349 and 350:
341disseminated through diplomatic
Page 351 and 352:
Page 353 and 354:
Page 355 and 356:
Page 357 and 358:
Page 359 and 360:
Page 361 and 362:
Page 363 and 364:
Page 365 and 366:
Page 367 and 368:
Page 369 and 370:
Page 371 and 372:
Page 373 and 374:
Page 375 and 376:
Page 377 and 378:
Page 379 and 380:
Page 381 and 382:
Page 383 and 384:
375ecutive Schedule under section 5
Page 385 and 386:
Page 387 and 388:
Page 389 and 390:
Page 391 and 392:
Page 393 and 394:
Page 395 and 396:
APPENDIX IIIPUBLIC HEARINGS OF THE
Page 397 and 398:
Page 399 and 400:
APPENDIX IIIALIST OF WITNESSES TEST
Page 401 and 402:
393Alphabetical Listing of Panelist
Page 403 and 404:
Page 405 and 406:
397In TaiwanU.S. Government• Amer
Page 407 and 408:
APPENDIX VLIST OF RESEARCH MATERIAL
Page 409 and 410:
401The National Security Implicatio
Page 411 and 412:
APPENDIX VIACRONYMS AND ABBREVIATIO
Page 413 and 414:
show all

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

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?