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

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166Recent Chinese Assertiveness in the South China SeaTension between China and other claimants in the South ChinaSea territorial disputes [see figure 1, below] has waxed and wanedin recent years, with periods of confrontation and intimidation followedby attempts at reconciliation and confidence building.* Chinadisplayed increasing territorial aggression in the spring and summermonths of 2011. In June, Ian Storey, fellow at the Institute forSoutheast Asian Studies in Singapore, noted that tensions in thedisputed seas were at their highest levels since the end of the ColdWar. 82 Notwithstanding China’s intermittent displays of cooperation,China’s expanding military, commercial, and rhetorical assertivenessin the South China Sea indicates that China is unlikelyto concede any of its sovereignty claims in the area. 83 Expert witnessestestified to the Commission that China’s patterns of assertivenessin the South China Sea call into question its ‘‘peacefulrise’’ as well as its long-term views toward its regional neighborsand the United States. 84dkrause on DSKHT7XVN1PROD with $$_JOB* Brunei, China, Malaysia, the Philippines, Taiwan, and Vietnam are claimants in maritimedisputes in the South China Sea. For information on developments in the South China Sea in2009 and 2010, see U.S.-China Economic and Security Review Commission, 2010 Annual Reportto Congress (Washington, DC: U.S. Government Printing Office, 2010), pp. 132–137.VerDate Nov 24 2008 13:46 Nov 10, 2011 Jkt 067464 PO 00000 Frm 00178 Fmt 6601 Sfmt 6601 G:\GSDD\USCC\2011\067464.XXX 067464
167Figure 1:Territorial Disputes in the South China SeaSource: James Clad, Sean M. McDonald, and Bruce Vaughn, eds., The Borderlands of SoutheastAsia (Washington, DC: National Defense University, 2011), p. 121. Note: Indonesia does notconsider itself a claimant to any dispute in the South China Sea, even though its territorialclaims in the region overlap with China’s. Permanent Mission of the Republic of Indonesia tothe United Nations, Circular Note No. 480/POL–703/VII/10, July 8, 2010. http://www.un.org/Depts/los/clcslnew/submissionslfiles/mysvnm33l09/idnl2010relmyslvnmle.pdf.The following are examples of China’s assertiveness in the SouthChina Sea in the past year:Obstruction of resource exploration activities—Chinese vessels obstructedresource exploration activities in the claimed territories ofother countries at least three times in the first half of 2011. Eachof these instances may constitute a violation of the United NationsConvention on the Law of the Sea, which allows any country sovereignrights to conduct economic or resource management activitiesin an exclusive economic zone (EEZ) up to 200 nautical milesfrom its shores and to which China is a signatory.† In March 2011,dkrause on DSKHT7XVN1PROD with $$_JOB† An exclusive economic zone is the maritime territory of a coastal state out to 200 nauticalmiles, where the coastal state enjoys ‘‘sovereign rights for the purpose of exploring and exploit-ContinuedVerDate Nov 24 2008 13:46 Nov 10, 2011 Jkt 067464 PO 00000 Frm 00179 Fmt 6601 Sfmt 6601 G:\GSDD\USCC\2011\067464.XXX 067464Ch2Fig1.eps
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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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dkrause on DSKHT7XVN1PROD with $$_J
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CONTENTSPageTRANSMITTAL LETTER TO T
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23Figure 1:China’s Share of the U
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25The weakness in U.S. exports of a
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31Table 3:RMB Bond Issuances by Mul
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35of bilateral negotiations under t
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37Stonewalling the WTO: A Case Stud
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39that China’s existing system of
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41now. Because the structures of th
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43How Big Is China’s State Sector
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45Fortune Global 500, compared to j
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47panies are less profitable, after
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49erate primarily within state-cont
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57Figure 1: Chinese FDI Stock in th
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63U.S. firms with sensitive technol
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65Addendum I: SASAC Companies, Larg
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67Addendum I: SASAC Companies, Larg
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69dkrause on DSKHT7XVN1PROD with $$
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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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103ment subsidies, which in turn wi
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105Addendum II: Figures 1-2Figure 1
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113drivers cited increased fuel pri
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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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3190aRCRD&ss=Hong+Kong&s=News; Pete
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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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