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

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154510. U.S.-China Economic and Security Review Commission, Hearing on China’sInternal Dilemmas, written testimony of Murray Scot Tanner, February 25, 2011.511. Keith Richburg, ‘‘In China, Microblogging sites become free-speech platform,’’Washington Post, March 27, 2011.512. Charles Chao, ‘‘Chinese microblogs growing faster than Twitter,’’ WantChinaTimes.com, May 20, 2011.513. U.S.-China Economic and Security Review Commission, Hearing on China’sInternal Dilemmas, testimony of Murray Scot Tanner, February 25, 2011.514. Andrew Jacobs, ‘‘As China steps Up Web Monitoring, Many Wi-Fi UsersStay Away,’’ New York Times, July 26, 2011.515. David Barboza, ‘‘Despite Restrictions, Twitterish Microblogs Are Booming inChina,’’ New York Times, May 16, 2011.516. Andrew Jacobs, ‘‘As China steps Up Web Monitoring, Many Wi-Fi UsersStay Away,’’ New York Times, July 26, 2011.517. Agence France-Presse, ‘‘PRC’s Plan to Send Chartered Jets to Cairo BringHome 500 Stranded Chinese,’’ January 31, 2011.518. Christopher Bodeen, ‘‘Chinese newspaper attacks Middle East uprisings,’’Associated Press, March 6, 2011.519. Tania Brannigan, ‘‘Crackdown in China spreads terror among dissidents,’’Guardian (United Kingdom), March 31, 2011.520. Andrew Quinn, ‘‘U.S. urges China to halt detention of activists,’’ Reuters,March 8, 2011.521. Keith Richburg, ‘‘In China, Microblogging sites become free-speech platform,’’Washington Post, March 27, 2011.522. Sui-Lee Wee, Huang Yan, and Jonathan Standing, ‘‘U.S. envoy’s nameblocked in latest run-in with China,’’ Reuters, February 25, 2011.523. Sui-Lee Wee, ‘‘Ai Weiwei endured ‘immense pressure’ in detention: source,’’Reuters, August 10, 2011. www.reuters.com/article/2011/08/10/us-china-artist-idUSTRE7793E620110810.524. Tania Branigan, ‘‘Ai Weiwei interrogated by Chinese police ‘more than 50times’,’’ Guardian (United Kingdom), August 10, 2011. www.guardian.co.uk/artanddesign/2011/aug/10/ai-weiwei-chinese-police.525. Foreign Policy, ‘‘Charter 08’’ (October 8, 2010).526. Isaac Stone Fish and Duncan Hewitt, ‘‘All Eyes on the Prize,’’ Newsweek, October8, 2010.527. Andrew Jacobs, ‘‘China, Angered by Peace Prize, Blocks Celebration,’’ NewYork Times, October 9, 2010.528. Brian Walker and Steven Jiang, ‘‘Chinese Nobel prize winner’s wife detained,’’CNN, October 11, 2010.529. Debbi Wilgoren, Keith B. Richburg, and Chris Richards, ‘‘Liu Xiaobo, jailedin China, honored in absentia by Nobel committee,’’ Washington Post, December 10,2010.530. Sharon LaFraniere and David Barboza, ‘‘China Tightens Censorship of ElectronicCommunications,’’ New York Times, March 21, 2011.531. Keith B. Richburg, ‘‘Amid fears of unrest, China imposes new restrictions onforeign journalists,’’ Washington Post, March 8, 2011.532. U.S. State Department Daily Press Briefing, comments by Spokesman P.J.Crowley (Washington, DC: March 8, 2011).533. Edward Wong, ‘‘China: Government Tells U.N. Agency Not To Interfere,’’New York Times, March 29, 2011.dkrause on DSKHT7XVN1PROD with $$_JOBVerDate Nov 24 2008 13:46 Nov 10, 2011 Jkt 067464 PO 00000 Frm 00166 Fmt 6601 Sfmt 6621 G:\GSDD\USCC\2011\067464.XXX 067464
dkrause on DSKHT7XVN1PROD with $$_JOBCHAPTER 2CHINA’S ACTIVITIES DIRECTLYAFFECTING U.S. SECURITY INTERESTSSECTION 1: MILITARY AND SECURITY YEARIN REVIEWIntroductionThis section provides an overview of the most relevant Chinesemilitary and security developments since the Commission’s 2010Annual Report to Congress. It is divided into three subsections:military developments, China’s recent foreign policy activities, andupdates on China’s cyber activities. This year’s military developmentssection describes progress in China’s military modernizationefforts, official statements from Beijing concerning its security interests,recent People’s Liberation Army (PLA) activities, and theU.S.-China military-to-military relationship. China’s foreign policysubsection focuses on China’s assertive behavior in the SouthChina Sea over the past year. The final subsection describes China’srecent cyber activities, both at home and abroad.Military Developments in 2011Over the past year, several notable developments involving China’smilitary have occurred. China’s military modernization continuedto progress, as evidenced by a series of firsts: China conductedtest flights of its first stealth fighter, conducted a sea trial of itsfirst aircraft carrier, and may have deployed the world’s first ballisticmissile capable of hitting moving ships at sea. China also conducteda major noncombatant evacuation of its citizens from Libya,the first involving the PLA. The past year also saw the resumptionof military-to-military engagement between the United States andChina, with three consecutive meetings between senior U.S. andChinese military officials. The following subsection describes theseevents.Military ModernizationJ–20 stealth fighterIn January 2011, China conducted the inaugural test flight of itsnext-generation fighter aircraft, the J–20. Although the flight attractedconsiderable attention in and outside of China, few detailsemerged about the fighter. Developed at the Chengdu Aircraft DesignInstitute, the plane appears to have a sufficient combat radius(155)VerDate Nov 24 2008 13:46 Nov 10, 2011 Jkt 067464 PO 00000 Frm 00167 Fmt 6601 Sfmt 6601 G:\GSDD\USCC\2011\067464.XXX 067464
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12011REPORT TO CONGRESSof theU.S.-C
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U.S.-CHINA ECONOMIC AND SECURITY RE
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CONTENTSPageTRANSMITTAL LETTER TO T
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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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47panies are less profitable, after
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49erate primarily within state-cont
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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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95Consultative Conference National
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99panies account[ed] for fully 7 pe
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101Dr. Shih has testified before th
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Page 113 and 114: 105Addendum II: Figures 1-2Figure 1
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Page 207 and 208: 199trates the depth of China’s sp
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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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RECOMMENDATIONSChina’s ‘‘Area
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239320. Chang Xianqi, Military Astr
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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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289fense, since its current fleet o
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323mation Office. Day-to-day superv
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327Although the slogans change over
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335What Constitutes a ‘‘Core In
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339Selected CAIFC/CPD Track Two Exc
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341disseminated through diplomatic
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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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