dkrause on DSKHT7XVN1PROD with $$_JOB232180. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, Hearing on <strong>China</strong>’sActive Defense <strong>and</strong> its Regional Impact, written testimony of David A. Deptula, January27, <strong>2011</strong>.181. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, Hearing on <strong>China</strong>’sActive Defense <strong>and</strong> its Regional Impact, written testimony of Roger Cliff, January27, <strong>2011</strong>; U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, Hearing on <strong>China</strong>’sActive Defense <strong>and</strong> its Regional Impact, written testimony of David A. Deptula,January 27, <strong>2011</strong>; <strong>and</strong> U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission,Hearing on <strong>China</strong>’s Active Defense <strong>and</strong> its Regional Impact, written testimony ofMartin C. Libicki, January 27, <strong>2011</strong>.182. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, Hearing on <strong>China</strong>’sActive Defense <strong>and</strong> its Regional Impact, written testimony of Roger Cliff, January27, <strong>2011</strong>.183. Roger Cliff (nonresident senior fellow at the Project 2049 Institute), e-mailcorrespondence with Commission staff, August 8, <strong>2011</strong>.184. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, Hearing on <strong>China</strong>’sActive Defense <strong>and</strong> its Regional Impact, written testimony of Roger Cliff, January27, <strong>2011</strong>; <strong>and</strong> U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, Hearing on<strong>China</strong>’s Active Defense <strong>and</strong> its Regional Impact, written testimony of David A.Deptula, January 27, <strong>2011</strong>.185. Peng Guangqian <strong>and</strong> Yao Youzhi, eds., The Science of Military Strategy (Beijing,<strong>China</strong>: Military Science Publishing House, 2005), p. 461.186. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, Hearing on <strong>China</strong>’sActive Defense <strong>and</strong> its Regional Impact, written testimony of Roger Cliff, January27, <strong>2011</strong>.187. Zhang Yuliang, ed., Zhanyi Xue [The Science of Campaigns] (Beijing, <strong>China</strong>:Guofang Daxue Chubanshe, 2006), p. 96. USCC staff translation.188. Office of the Secretary of Defense, Annual Report <strong>to</strong> Congress: Military <strong>and</strong><strong>Security</strong> Developments Involving the People’s Republic of <strong>China</strong> 2010 (Washing<strong>to</strong>n,DC: U.S. Department of Defense, 2010), pp. 22–23; U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong><strong>Review</strong> Commission, Hearing on <strong>China</strong>’s Active Defense <strong>and</strong> its Regional Impact,written testimony of Oriana Skylar Mastro, January 27, <strong>2011</strong>; U.S.-<strong>China</strong> <strong>Economic</strong><strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, Hearing on <strong>China</strong>’s Active Defense <strong>and</strong> itsRegional Impact, written testimony of Cortez A. Cooper, January 27, <strong>2011</strong>; U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, 2009 Annual Report <strong>to</strong> Congress(Washing<strong>to</strong>n, DC: U.S Government Printing Office, November 2009), pp. 130–34;<strong>and</strong> Michael J. McDevitt, ‘‘The PLA Navy Anti-Access Role in a Taiwan Contingency’’(paper presented at the 2010 Pacific Symposium, June 16, 2010, p. 16).189. Michael J. McDevitt, ‘‘The Strategic <strong>and</strong> Operational Context Driving PLANavy Building,’’ in Right-Sizing the People’s Liberation Army: Exploring the Con<strong>to</strong>ursof <strong>China</strong>’s Military, eds. Roy Kamphausen <strong>and</strong> Andrew Scobell (Carlisle, PA:U.S. Army War College, 2007), pp. 485–486; US–<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong>Commission, Hearing on <strong>China</strong>’s Active Defense Strategy <strong>and</strong> Its Regional Impact,written testimony of Cortez A. Cooper, January 27, <strong>2011</strong>; <strong>and</strong> Dean Cheng,‘‘Sea Power <strong>and</strong> the Chinese State: <strong>China</strong>’s Maritime Ambitions,’’ HeritageBackgrounder 2576 (July 11, <strong>2011</strong>). http://www.heritage.org/research/<strong>report</strong>s/<strong>2011</strong>/07/sea-power-<strong>and</strong>-the-chinese-state-chinas-maritime-ambitions;190. Peng Guangqian <strong>and</strong> Yao Youzhi, eds., The Science of Military Strategy (Beijing,<strong>China</strong>: Military Science Publishing House, 2005), p. 461.191. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, Hearing on <strong>China</strong>’sActive Defense <strong>and</strong> its Regional Impact, written testimony of Oriana Skylar Mastro,January 27, <strong>2011</strong>; U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, Hearingon <strong>China</strong>’s Active Defense <strong>and</strong> its Regional Impact, written testimony of Cortez A.Cooper, January 27, <strong>2011</strong>; <strong>and</strong> U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission,Hearing on <strong>China</strong>’s Active Defense <strong>and</strong> its Regional Impact, written testimonyof David A. Deptula, January 27, <strong>2011</strong>. See also U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong><strong>Review</strong> Commission, 2009 Annual Report <strong>to</strong> Congress (Washing<strong>to</strong>n, DC: U.S. GovernmentPrinting Office, November 2009), p. 144.192. Officials of the Singaporean government, meeting with Commissioners,Singapore, December 13, 2010.193. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, 2009 Annual Report<strong>to</strong> Congress (Washing<strong>to</strong>n, DC: U.S Government Printing Office, November 2009), p.147; <strong>and</strong> U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, 2010 Annual AnnualReport <strong>to</strong> Congress (Washing<strong>to</strong>n, DC: U.S. Government Printing Office, November2010), p. 91.194. Information Office of the State Council, <strong>China</strong>’s National Defense in 2010(Beijing, <strong>China</strong>: March <strong>2011</strong>); <strong>and</strong> Information Office of the State Council, <strong>China</strong>’sNational Defense in 2008 (Beijing. <strong>China</strong>: January 2009).VerDate Nov 24 2008 13:46 Nov 10, <strong>2011</strong> Jkt 067464 PO 00000 Frm 00244 Fmt 6601 Sfmt 6621 G:\GSDD\USCC\<strong>2011</strong>\067464.XXX 067464
dkrause on DSKHT7XVN1PROD with $$_JOB233195. Office of the Secretary of Defense, Annual Report <strong>to</strong> Congress: Military <strong>and</strong><strong>Security</strong> Developments Involving the People’s Republic of <strong>China</strong> <strong>2011</strong> (Washing<strong>to</strong>n,DC: U.S. Department of Defense, <strong>2011</strong>), p. 32.196. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, Hearing on <strong>China</strong>’sActive Defense <strong>and</strong> its Regional Impact, written testimony of Stacy A. Pedrozo, January27, <strong>2011</strong>.197. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, Hearing on <strong>China</strong>’sActive Defense <strong>and</strong> its Regional Impact, written testimony of David A. Deptula, January27, <strong>2011</strong>.198. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, 2009 Annual Report<strong>to</strong> Congress (Washing<strong>to</strong>n, DC: U.S. Government Printing Office, November 2009), p.136.199. Ronald O’Rourke, <strong>China</strong> Naval Modernization: Implications for U.S. NavyCapabilities—Background <strong>and</strong> Issues for Congress (Washing<strong>to</strong>n, DC: CongressionalResearch Service, June 8, <strong>2011</strong>), pp. 16–22.200. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, 2010 Annual Report<strong>to</strong> Congress (Washing<strong>to</strong>n, DC: U.S. Government Printing Office, November 2010),pp. 85–87. The Department of Defense’s recent <strong>report</strong> on <strong>China</strong>’s military powersimilarly lists between 1,000 <strong>and</strong> 1,200 short-range ballistic missiles. Office of theSecretary of Defense, Annual Report <strong>to</strong> Congress: Military <strong>and</strong> <strong>Security</strong> DevelopmentsInvolving the People’s Republic of <strong>China</strong> <strong>2011</strong> (Washing<strong>to</strong>n, DC: U.S. Departmen<strong>to</strong>f Defense, <strong>2011</strong>), p. 78.201. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, Hearing on <strong>China</strong>’sActive Defense <strong>and</strong> its Regional Impact, written testimony of David A. Deptula, January27, <strong>2011</strong>.202. Office of the Secretary of Defense, Annual Report <strong>to</strong> Congress: Military <strong>and</strong><strong>Security</strong> Developments Involving the People’s Republic of <strong>China</strong> <strong>2011</strong> (Washing<strong>to</strong>n,DC: U.S. Department of Defense, <strong>2011</strong>), p. 3.203. Jan Van Tol et al., AirSea Battle: A Point of Departure Operational Concept(Washing<strong>to</strong>n, DC: Center for Strategic <strong>and</strong> Budgetary Assessments, 2010), p. 18.204. Office of the Secretary of Defense, Annual Report <strong>to</strong> Congress: Military <strong>and</strong><strong>Security</strong> Developments Involving the People’s Republic of <strong>China</strong> <strong>2011</strong> (Washing<strong>to</strong>n,DC: U.S. Department of Defense, <strong>2011</strong>), p. 78.205. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, 2009 Annual Report<strong>to</strong> Congress (Washing<strong>to</strong>n, DC: U.S Government Printing Office, November 2009), p.138.206. Ronald O’Rourke, <strong>China</strong> Naval Modernization: Implications for U.S. NavyCapabilities—Background <strong>and</strong> Issues for Congress (Washing<strong>to</strong>n, DC: CongressionalResearch Service, June 8, <strong>2011</strong>), p. 42.207. Andrew S. Erickson, Lyle J. Goldstein, <strong>and</strong> William S. Murray, ‘‘ChineseMine Warfare: A PLA Navy ‘Assassin’s Mace’ Capability,’’ <strong>China</strong> Maritime Studies3 (Newport, RI: U.S. Naval War College, June 2009): 25.208. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, 2010 Annual Report<strong>to</strong> Congress (Washing<strong>to</strong>n, DC: U.S. Government Printing Office, November 2010),pp. 73–91.209. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, 2010 Annual Report<strong>to</strong> Congress (Washing<strong>to</strong>n, DC: U.S. Government Printing Office, November 2010), p.80.210. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, Hearing on <strong>China</strong>’sActive Defense <strong>and</strong> its Regional Impact, written testimony of David A. Deptula, January27, <strong>2011</strong>.211. Office of the Secretary of Defense, Annual Report <strong>to</strong> Congress: Military <strong>and</strong><strong>Security</strong> Developments Involving the People’s Republic of <strong>China</strong> <strong>2011</strong> (Washing<strong>to</strong>n,DC: U.S. Department of Defense, <strong>2011</strong>), p. 28.212. U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, 2010 Annual Report<strong>to</strong> Congress (Washing<strong>to</strong>n, DC: U.S. Government Printing Office, November 2010),pp. 82–83.213. Information Office of the State Council, <strong>China</strong>’s National Defense in 2010(Beijing, <strong>China</strong>: March <strong>2011</strong>).214. Jan Van Tol et al., AirSea Battle: A Point of Departure Operational Concept(Washing<strong>to</strong>n, DC: Center for Strategic <strong>and</strong> Budgetary Assessments, 2010), pp. 19<strong>and</strong> 21.215. David D. Chen, ‘‘<strong>2011</strong> PLA Military Training: Toward Greater Interoperability,’’<strong>China</strong> Brief 11:2 (January 21, <strong>2011</strong>): 10–11.216. Bryan Krekel, with George Bakos <strong>and</strong> Chris<strong>to</strong>pher Barnett, Capability of thePeople’s Republic of <strong>China</strong> <strong>to</strong> Conduct Cyber Warfare <strong>and</strong> Computer Network Exploitation(McLean, VA: Northrup Grumman Corporation, Oc<strong>to</strong>ber 9, 2009). http://www.uscc.gov/researchpapers/2009/NorthropGrumman l PRC l Cyber l PaperVerDate Nov 24 2008 13:46 Nov 10, <strong>2011</strong> Jkt 067464 PO 00000 Frm 00245 Fmt 6601 Sfmt 6621 G:\GSDD\USCC\<strong>2011</strong>\067464.XXX 067464
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12011REPORT TO CONGRESSof theU.S.-C
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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 247 and 248: 239320. Chang Xianqi, Military Astr
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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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