dkrause on DSKHT7XVN1PROD with $$_JOB144262. Chinese Ministry of Finance, Ministry of Science <strong>and</strong> Technology, <strong>and</strong> NationalDevelopment <strong>and</strong> Reform Commission, Notice Concerning the Repeal of TrialMeasures for the Administration for the Accreditation of National Indigenous InnovationProducts (Beijing, <strong>China</strong>: July 4, <strong>2011</strong>).263. U.S.-<strong>China</strong> Business Council, Issues Brief: <strong>China</strong>’s Domestic Innovation <strong>and</strong>Government Procurement Policies (Washing<strong>to</strong>n DC: March <strong>2011</strong>), p. 8.264. U.S.-<strong>China</strong> Business Council, ‘‘USCBC Statement on <strong>China</strong>’s Innovation<strong>and</strong> Procurement Regula<strong>to</strong>ry Changes’’ (Washing<strong>to</strong>n, DC: June 29, <strong>2011</strong>). https://www.uschina.org/public/documents/<strong>2011</strong>/06/statement-on-regula<strong>to</strong>ry-changes.html.265. European Union Chamber of Commerce in <strong>China</strong>, ‘‘European Chamber Welcomesthe Ministry of Finance’s Announcement on Abolishing Indigenous Innovation-RelatedPolicies’’ (Beijing, <strong>China</strong>: July 1, <strong>2011</strong>). http://www.europeanchamber.com.cn/view/media/printview?cid=8939&print=1.266. Jiangsu Province Government Procurement Office, Provincial governmentministries <strong>and</strong> agencies convened for a conference on the government procurementpolicy for indigenous innovation products, Vice Minister Song Yiwu attended <strong>and</strong>spoke, Jiangsu Government Procurement website, July 19, <strong>2011</strong>. http://www.ccgpjiangsu.gov.cn/pub/jszfcg/xwdt/xw/<strong>2011</strong>07/t<strong>2011</strong>0719l50444.html.267. Jiangsu Province Government Procurement Office, Provincial governmentministries <strong>and</strong> agencies convened for a conference on the government procurementpolicy for indigenous innovation products, Vice Minister Song Yiwu attended <strong>and</strong>spoke, Jiangsu Government Procurement website, July 19, <strong>2011</strong>. http://www.ccgpjiangsu.gov.cn/pub/jszfcg/xwdt/xw/<strong>2011</strong>07/t<strong>2011</strong>0719l50444.html.268. Shanghai Municipality Finance Bureau, Notice Regarding the Repeal ofShanghai Municipality Operating Procedures on the Government Procurement ofIndigenous Innovation Products (Shanghai, <strong>China</strong>: June 30, <strong>2011</strong>). http://www.czj.sh.gov.cn/zcfg/gfxwj/zfcg/<strong>2011</strong>07/t<strong>2011</strong>0708l128212.html.269. Dustin Ensinger, ‘‘Locke Chides <strong>China</strong> on Indigenous Innovation,’’ Economyin Crisis; America’s <strong>Economic</strong> Report, February 3, <strong>2011</strong>. http://economyincrisis.org/content/locke-chides-china-indigenous-innovation.270. Gary Locke, ‘‘Remarks <strong>to</strong> Asia Society on Chinese Foreign Direct Investmentin America,’’ An American Open Door? Maximizing the Benefits of Chinese ForeignDirect Investment (Keynote Address: Asia Society, Kissinger Institute on <strong>China</strong><strong>and</strong> the United States, Washing<strong>to</strong>n, DC, May 4, <strong>2011</strong>). http://asiasociety.org/policy/center-us-china-relations/complete-text-us-commerce-secretary-gary-lockes-asia-societyspeech.271. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, Hearing on ChineseState-Owned Enterprises <strong>and</strong> U.S.-<strong>China</strong> Bilateral Investment, testimony of TheodoreH. Moran, March 30, <strong>2011</strong>.272. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, Hearing on <strong>China</strong>’sFive-Year Plan, Indigenous Innovation <strong>and</strong> Technology Transfers <strong>and</strong> Outsourcing,written testimony of Dieter Ernst, June 15, <strong>2011</strong>.273. Sohu Finance, ‘‘The catalogue for the government procurement of indigenousinnovation products has not yet been issued,’’ July 6, <strong>2011</strong>. http://www.ccgp.gov.cn/llsj/cgxx/<strong>2011</strong>07/t<strong>2011</strong>0706l1680731.shtml.274. Gary Locke, ‘‘Keynote Address, U.S.-<strong>China</strong> Business Council Luncheon’’(U.S.-<strong>China</strong> Business Council, Washing<strong>to</strong>n DC, January 13, <strong>2011</strong>). http://www.commerce.gov/news/secretary-speeches/<strong>2011</strong>/01/13/remarks-us-china-business-councilluncheon.275. Colin Beere, ‘‘Hybrid in a Trade Squeeze,’’ New York Times, September 5,<strong>2011</strong>.276. Sharon Terlep, ‘‘Road Gets Bumpy for GM in <strong>China</strong>,’’ Wall Street Journal,September 16, <strong>2011</strong>.277. Sharon Terlep, ‘‘Road Gets Bumpy for GM in <strong>China</strong>,’’ Wall Street Journal,September 16, <strong>2011</strong>.278. World Trade Organization, ‘‘Intellectual Property: Protection <strong>and</strong> Enforcement’’(Geneva, Switzerl<strong>and</strong>). http://www.w<strong>to</strong>.org/english/thew<strong>to</strong>le/whatisle/tifle/agrm7le.htm.279. Office of the United States Trade Representative, <strong>2011</strong> Special 301 Report(Washing<strong>to</strong>n, DC: <strong>2011</strong>).280. Wayne M. Morrison, ‘‘<strong>China</strong>-U.S. Trade Issues’’ (Washing<strong>to</strong>n, DC: CongressionalResearch Service, August 10, <strong>2011</strong>).281. U.S. Cus<strong>to</strong>ms <strong>and</strong> Border Protection, ‘‘Department of Homel<strong>and</strong> <strong>Security</strong>IPR [intellectual property rights] Seizures’’ (Washing<strong>to</strong>n DC: Intellectual PropertyRights National Targeting <strong>and</strong> Analysis Group, March 16, <strong>2011</strong>).282. U.S. International Trade Commission, ‘‘<strong>China</strong>: Effects of Intellectual PropertyInfringement <strong>and</strong> Indigenous Innovation Policies on the U.S. Economy’’ (Washing<strong>to</strong>n,DC: May <strong>2011</strong>), pp. 2–3.VerDate Nov 24 2008 13:46 Nov 10, <strong>2011</strong> Jkt 067464 PO 00000 Frm 00156 Fmt 6601 Sfmt 6621 G:\GSDD\USCC\<strong>2011</strong>\067464.XXX 067464
dkrause on DSKHT7XVN1PROD with $$_JOB145283. Paul Goldstein, Intellectual Property: The Tough New Realities That CouldMake or Break Your Business (New York: Portfolio, 2007), p. 2.284. Nam Pham, ‘‘The Impact of Innovation <strong>and</strong> the Role of Intellectual PropertyRights on U.S. Productivity, Competitiveness, Jobs, Wages <strong>and</strong> Exports’’ (Washing<strong>to</strong>n,DC: NDP Consulting, April 2010).285. Nam Pham, ‘‘The Impact of Innovation <strong>and</strong> the Role of Intellectual PropertyRights on U.S. Productivity, Competitiveness, Jobs, Wages <strong>and</strong> Exports’’ (Washing<strong>to</strong>n,DC: NDP Consulting, April 2010).286. Nam Pham, ‘‘The Impact of Innovation <strong>and</strong> the Role of Intellectual PropertyRights on U.S. Productivity, Competitiveness, Jobs, Wages <strong>and</strong> Exports’’ (Washing<strong>to</strong>n,DC: NDP Consulting, 2010).287. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, Hearing on ‘‘<strong>China</strong>’sIntellectual Property Rights <strong>and</strong> Indigenous Innovation Policy, testimony of MichaelSchlesinger, May 4, <strong>2011</strong>.288. Robert Holleyman, ‘‘How Chinese companies steal a critical business advantage,’’Hill (Washing<strong>to</strong>n, DC), May 11, <strong>2011</strong>.289. Business Software Alliance, ‘‘Eighth Annual BSA Global Software 2010 PiracyStudy’’ (Washing<strong>to</strong>n, DC: May <strong>2011</strong>).290. Business Software Alliance, ‘‘Eighth Annual BSA Global Software 2010 PiracyStudy’’ (Washing<strong>to</strong>n, DC: May <strong>2011</strong>).291. David Leonhardt, ‘‘Software Piracy in <strong>China</strong>,’’ New York Times, January 19,<strong>2011</strong>.292. International Intellectual Property Alliance, <strong>2011</strong> Special 301 Report onCopyright Protection <strong>and</strong> Enforcement, People’s Republic of <strong>China</strong> (Washing<strong>to</strong>n, DC:February 15, <strong>2011</strong>). http://www.iipa.com/rbc/<strong>2011</strong>/<strong>2011</strong>SPEC301PRC.pdf.293. International Intellectual Property Alliance, <strong>2011</strong> Special 301 Report onCopyright Protection <strong>and</strong> Enforcement, People’s Republic of <strong>China</strong> (Washing<strong>to</strong>n, DC:February 15, <strong>2011</strong>). http://www.iipa.com/rbc/<strong>2011</strong>/<strong>2011</strong>SPEC301PRC.pdf.294. John H. Jackson, William J. Davey, <strong>and</strong> Alan O. Sykes, Jr., Legal Problemsof International <strong>Economic</strong> Relations, Documents Supplement, Trade Related Aspectsof Intellectual Property Rights (St. Paul, MN: Thomson-West, 2008), p. 360.295. TechNode, ‘‘Baidu Promises <strong>to</strong> Put An End <strong>to</strong> its Music Piracy,’’ June14, <strong>2011</strong>. http://technode.com/<strong>2011</strong>/06/14/baidu-promises-<strong>to</strong>-put-an-end-<strong>to</strong>-its-musicpiracy/;Office of the U.S. Trade Representative, <strong>2011</strong> Special 301 Report (Washing<strong>to</strong>n,DC: April <strong>2011</strong>), p. 21.296. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, Hearing on <strong>China</strong>’sIntellectual Property Rights <strong>and</strong> Indigenous Innovation Policy, testimony of MichaelSchlesinger, May 4, <strong>2011</strong>.297. Business Software Alliance, ‘‘Internet Software Piracy; A Multifaceted Challenge’’(Washing<strong>to</strong>n, DC). http://internet.bsa.org/overview/home.aspx.298. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, Hearing on <strong>China</strong>’sIntellectual Property Rights <strong>and</strong> Indigenous Innovation Policy, testimony of MichaelSchlesinger, May 4, <strong>2011</strong>.299. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, Hearing on <strong>China</strong>’sIntellectual Property Rights <strong>and</strong> Indigenous Innovation Policy, testimony of KenWasch, May 4, <strong>2011</strong>.300. International Intellectual Property Alliance, <strong>2011</strong> Special 301 Report onCopyright Protection <strong>and</strong> Enforcement, People’s Republic of <strong>China</strong> (Washing<strong>to</strong>n, DC:February 15, <strong>2011</strong>). http://www.iipa.com/rbc/<strong>2011</strong>/<strong>2011</strong>SPEC301PRC.pdf.301. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, Hearing on <strong>China</strong>’sIntellectual Property Rights <strong>and</strong> Indigenous Innovation Policy, testimony of MichaelSchlesinger, May 4, <strong>2011</strong>.302. Interview with local American business representatives, U.S.-<strong>China</strong> <strong>Economic</strong><strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission in Hong Kong, August <strong>2011</strong>.303. U.S. House of Representatives, Committee on Energy <strong>and</strong> Commerce, Subcommitteeon Commerce, Manufacturing <strong>and</strong> Trade, Hearing on Made in America:Increasing Jobs through Exports <strong>and</strong> Trade, testimony of Robert W. Holleyman II,107th Cong., 1st sess., March 16, 2001.304. Business Software Alliance, ‘‘ITC [U.S. International Trade Commission] ReportHighlights Severe <strong>Economic</strong> Consequences of Intellectual Property Theft in<strong>China</strong>’’ (Washing<strong>to</strong>n DC: May 18, <strong>2011</strong>). http://www.bsa.org/country/News%20<strong>and</strong>%20Events/News%20Archives/en/<strong>2011</strong>/en-0518<strong>2011</strong>-itc.aspx.305. Forbes, ‘‘<strong>China</strong> Tops U.S. As the World’s Largest PC [personal computer]Market,’’ August 23, <strong>2011</strong>. http://www.forbes.com/sites/ericsavitz/<strong>2011</strong>/08/23/china<strong>to</strong>ps-u-s-as-the-worlds-largest-pc-market/.306. U.S. International Trade Commission, ‘‘<strong>China</strong>: Effects of Intellectual PropertyInfringement <strong>and</strong> Indigenous Innovation Policies on the U.S. Economy’’ (Washing<strong>to</strong>n,DC: May <strong>2011</strong>), pp. 3–15.VerDate Nov 24 2008 13:46 Nov 10, <strong>2011</strong> Jkt 067464 PO 00000 Frm 00157 Fmt 6601 Sfmt 6621 G:\GSDD\USCC\<strong>2011</strong>\067464.XXX 067464
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23Figure 1:China’s Share of the U
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25The weakness in U.S. exports of a
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31Table 3:RMB Bond Issuances by Mul
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35of bilateral negotiations under t
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37Stonewalling the WTO: A Case Stud
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39that China’s existing system of
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41now. Because the structures of th
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43How Big Is China’s State Sector
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45Fortune Global 500, compared to j
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57Figure 1: Chinese FDI Stock in th
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63U.S. firms with sensitive technol
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65Addendum I: SASAC Companies, Larg
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67Addendum I: SASAC Companies, Larg
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69dkrause on DSKHT7XVN1PROD with $$
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71January 2010, the heads of 19 U.S
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77cause Beijing had sought to exclu
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81China in Search of Western Techno
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83scious policy seeking to drive Ch
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89Like previous plans, the 12th Fiv
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197ther moves toward independence,
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199trates the depth of China’s sp
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201Figure 2:Representation of Beido
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205ganization, modeled on the Europ
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207China’s leadership also places
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211[General Armaments Department] p
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213Table 2: Select Chinese Satellit
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215weapons or coorbital satellite w
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217Malicious Cyber ActivitiesDirect
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243woman Jiang Yu simply expressed
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245Table 1:Timeline of Sino-North K
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249China also provides economic sup
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251economic and social strains woul
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255Iran’s South Pars Gas Field af
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257When asked by Commissioners abou
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281trade, and dispute settlement. 2
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287of Request to the United States
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327Although the slogans change over
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339Selected CAIFC/CPD Track Two Exc
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375ecutive Schedule under section 5
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APPENDIX IIIPUBLIC HEARINGS OF THE
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APPENDIX IIIALIST OF WITNESSES TEST
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393Alphabetical Listing of Panelist
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397In TaiwanU.S. Government• Amer
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APPENDIX VLIST OF RESEARCH MATERIAL
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401The National Security Implicatio
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APPENDIX VIACRONYMS AND ABBREVIATIO
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