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

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dkrause on DSKHT7XVN1PROD with $$_JOB228101. Matthew Pennington, ‘‘Amid South China Sea Tensions US Says Committedto Protect Philippines,’’ Associated Press, June 23, 2011. http://www.660news.com/news/world/article/245086—amid-south-china-sea-tensions-us-says-it-is-committed-todefence-of-the-philippines.102. U.S.-China Economic and Security Review Commission, Hearing on China’sActive Defense Strategy and its Regional Impacts, written testimony of Stacy A.Pedrozo, January 27, 2011.103. Michael D. Swaine and M. Taylor Fravel, ‘‘China’s Assertive Behavior PartTwo: The Maritime Periphery, China Leadership Monitor 35 (Summer 2011): 6.http://web.mit.edu/ssp/people/fravel/SwainelFravellCLMl35l0624111.pdf.104. Kyodo News (Japan), ‘‘Chinese fishery vessel sets sail for disputed waters,’’ September 2, 2011. http://english.kyodonews.jp/news/2011/09/112598.html.105. Shi Jiangtao, ‘‘China charts course to project marine power,’’ South ChinaMorning Post, June 9, 2011.106. People’s Daily, ‘‘China to beef up maritime forces amid disputes,’’ June 17,2011. http://english.people.com.cn/90001/90776/90883/7412388.html#; Grace Ng,‘‘China Beefs Up Maritime Patrol Force,’’ Straits Times Indonesia, May 3, 2011.http://www.thejakartaglobe.com/asia/china-beefs-up-maritime-patrol-force/438869.107. Grace Ng, ‘‘China Beefs Up Maritime Patrol Force,’’ Straits Times Indonesia,May 3, 2011. http://www.thejakartaglobe.com/asia/china-beefs-up-maritime-patrolforce/438869.108. Open Source Center Graphic, ‘‘Military-Related Events in South China Sea,13 to 21 June 2011,’’ June 21, 2011. CPP20110622017001. www.opensource.gov.109. BBC, ‘‘Singapore urges China to clarify South China Sea claim,’’ June 20,2011. http://www.bbc.co.uk/news/world-asia-pacific-13838462.110. Ben Bland and Girija Shivakumar, ‘‘China confronts Indian vessel,’’ August31, 2011. http://www.ft.com/cms/s/0/883003ec-d3f6-11e0-b7eb-00144feab49a.html#axzz1WdFprBsj.111. James Rupert and Daniel Ten Kate, ‘‘China Pushing for Binding S. ChinaSea Code, Aquino Says,’’ Bloomberg News, September 1, 2011. http://www.bloomberg.com / news/2011-08-31/china-wants-binding-conduct-code-in-s-chinasea-aquino-says.html.112. U.S.-China Economic and Security Review Commission, Hearing on China’sActive Defense Strategy and its Regional Impacts, written testimonies of Stacy A.Pedrozo and Jim Thomas, January 27, 2011.113. U.S.-China Economic and Security Review Commission, Hearing on China’sActive Defense Strategy and its Regional Impacts, written testimonies of Stacy A.Pedrozo and Jim Thomas, January 27, 2011.114. Agence France-Presse, ‘‘China Stages Military Drills in South China Sea,’’June 17, 2011. http://www.straitstimes.com/BreakingNews/Asia/Story/STIStoryl680861.html.115. Xinhua, ‘‘PLA’s Operation in S China routine drill: Ministry,’’ August 9,2011. http://www.chinadaily.com.cn/china/2011-08/09/contentl13080729.htm.116. U.S.-China Economic and Security Review Commission, Hearing on China’sActive Defense Strategy and its Regional Impact, written testimony of Jim Thomas,January 27, 2011.117. Philippine Star, ‘‘Manila Protests Presence of Chinese Navy Vessels in PhilippineWaters,’’ June 2, 2011.118. Philippines Department of Foreign Affairs, ‘‘Statement of the Department ofForeign Affairs on Developments in the West Philippine Sea (South China Sea)’’(Pasay City, Philippines: June 1, 2011). http://www.dfa.gov.ph/main/index.php/officeof-the-undersecretary-for-policy/3111-statement-of-the-department-of-foreign-affairs-on-developments-in-the-west-philippine-sea-south-china-sea.119. Association of Southeast Asian Nations, Declaration on the Conduct of Partiesin the South China Sea, 2002. http://www.aseansec.org/13163.htm.120. Ian Storey, ‘‘Recent Developments in the South China Sea’’ (Center for Strategicand International Studies conference, ‘‘Maritime Security in the South ChinaSea,’’ Washington, DC, June 20–21, 2011).121. Representatives of the Singaporean Ministry of Foreign Affairs, and Singaporeanacademics, meetings with Commissioners, Singapore, December 13, 2010;Representatives of the Indonesian Ministry of Foreign Affairs, meetings with Commissioners,Jakarta, Indonesia, December 15, 2010.122. Representatives of the Singaporean government, meetings with Commissioners,Singapore, December 13, 2010; Representatives of the Indonesian government,meetings with Commissioners, Jakarta, Indonesia, December 15, 2010; U.S.-China Economic and Security Review Commission, 2010 Annual Report to Congress(Washington, DC: U.S. Government Printing Office, 2010), p. 139.VerDate Nov 24 2008 13:46 Nov 10, 2011 Jkt 067464 PO 00000 Frm 00240 Fmt 6601 Sfmt 6621 G:\GSDD\USCC\2011\067464.XXX 067464
dkrause on DSKHT7XVN1PROD with $$_JOB229123. Representatives of the Singaporean government, meeting with Commissioners,Singapore, December 13, 2010; Ian Storey, ‘‘China’s Missteps in SoutheastAsia: Less Charm, More Offensive’’ China Brief 10:25 (December 17, 2010). http://www.jamestown.org/single/?nolcache=1&txlttnews[ttlnews]=37294.124. Representatives of the Singaporean government, meeting with Commissioners,Singapore, December 13, 2010.125. Jim Gomez, ‘‘SE Asia risks China’s ire to discuss sea dispute,’’ AssociatedPress, September 22, 2011. http://my.news.yahoo.com/se-asia-risks-chinas-ire-discusssea-dispute-062157276.html;Xinhua, ‘‘China opposes attempts to internationalizeSouth China Sea disputes,’’ September 28, 2011. http://news.xinhuanet.com/english2010/china/2011-09/28/cl131165615.htm.126. Long Tao, ‘‘Time to teach those around the South China Sea a lesson,’’ GlobalTimes, September 29, 2011. http://www.globaltimes.cn/NEWS/tabid/99/ID/677717/Time-to-teach-those-around-South-China-Sea-a-lesson.aspx.127. U.S.-China Economic and Security Review Commission, Hearing on China’sActive Defense Strategy and its Regional Impacts, written testimonies of Jim Thomas,January 27, 2011.128. U.S.-China Economic and Security Review Commission, Hearing on China’sActive Defense Strategy and its Regional Impacts, written testimonies of Stacy A.Pedrozo, January 27, 2011.129. U.S.-China Economic and Security Review Commission, Hearing on China’sActive Defense Strategy and its Regional Impacts, written testimonies of BalbinaHwang, January 27, 2011.130. U.S.-China Economic and Security Review Commission, Hearing on China’sActive Defense Strategy and its Regional Impacts, written testimonies of Stacy A.Pedrozo, January 27, 2011.131. U.S.-China Economic and Security Review Commission, Hearing on China’sActive Defense Strategy and its Regional Impacts, written testimonies of Stacy A.Pedrozo, January 27, 2011; People’s Daily, ‘‘China to strengthen maritime forcesamid dispute,’’ June 17, 2011. http://english.people.com.cn/90001/90776/90883/7412388.html#.132. Elinor Mills, ‘‘China linked to new breaches tied to RSA,’’ CNET News InsecurityComplex, June 6, 2011. http://news.cnet.com/8301-27080l3-20068836-245/china-linked-to-new-breaches-tied-to-rsa/#ixzz1WY7QASTd; and Christopher Drew,‘‘Stolen Data Is Tracked to Hacking at Lockheed,’’ New York Times, June 3, 2011.http://www.nytimes.com/2011/06/04/technology/04security.html.133. For example, the ‘‘Shadows in the Cloud’’ case study documented 131 compromisedinformation systems in 31 countries. Information Warfare Monitor andShadowserver Foundation, ‘‘Shadows in the Cloud: Investigating Cyber Espionage2.0,’’ April 6, 2010, p. 27. http://shadows-in-the-cloud.net.134. Dmitri Alperovitch, Revealed: Operation Shady RAT (Santa Clara, CA:McAfee, August 2011), p. 4. http://www.mcafee.com/us/resources/white-papers/wpoperation-shady-rat.pdf.135. Dmitri Alperovitch, Revealed: Operation Shady RAT (Santa Clara, CA:McAfee, August 2011), p. 6. http://www.mcafee.com/us/resources/white-papers/wpoperation-shady-rat.pdf.136. Zhao Huanxin, ‘‘China names key industries for absolute state control,’’China Daily, December 19, 2006. http://www.chinadaily.com.cn/china/2006-12/19/contentl762056.htm.137. McAfee Foundstone Professional Services/McAfee Labs, Global EnergyCyberattacks: ‘Night Dragon’ (Santa Clara, CA: McAfee, February 10, 2011). http://www.mcafee.com/us/resources/white-papers/wp-global-energy-cyberattacks-night-dragon.pdf.138. McAfee Foundstone Professional Services/McAfee Labs, Global EnergyCyberattacks: ‘Night Dragon’ (Santa Clara, CA: McAfee, February 10, 2011). http://www.mcafee.com/us/resources/white-papers/wp-global-energy-cyberattacks-night-dragon.pdf.139. The Official Google Blog, ‘‘Ensuring your information is safe online,’’ June1, 2011. http://googleblog.blogspot.com/2011/06/ensuring-your-information-issafe.html.140. U.S.-China Economic and Security Review Commission, 2009 Annual Reportto Congress (Washington, D.C.: U.S. Government Printing Office, November 2009),p. 172. http://www.uscc.gov/annual/report/2009/annual/report/full/09.pdf; and NorthropGrumman Corporation, ‘‘Capability of the People’s Republic of China to ConductCyber Warfare and Computer Network Exploitation’’ (contracted researchpaper for the U.S.-China Economic and Security Review Commission, June 2009),p. 32. http://www.uscc.gov/researchpapers/2009/NorthropGrumman/PRC/Cyber/Paper/FINAL/Approved%20Report/16Oct2009.pdf.VerDate Nov 24 2008 13:46 Nov 10, 2011 Jkt 067464 PO 00000 Frm 00241 Fmt 6601 Sfmt 6621 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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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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123uating from college and hoping t
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131unfairly or unjustifiably harm U
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161gress, the DoD noted that China
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165eral U.S. military policies, inc
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167Figure 1:Territorial Disputes in
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171provides guidelines for dealing
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173network exploitations to facilit
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Page 189 and 190: 181ligence, surveillance, and recon
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Page 207 and 208: 199trates the depth of China’s sp
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Page 229 and 230: RECOMMENDATIONSChina’s ‘‘Area
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Page 247 and 248: 239320. Chang Xianqi, Military Astr
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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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