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

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dkrause on DSKHT7XVN1PROD with $$_JOB3122003515299; and Nancy Liu, ‘‘Taiwan ‘optimistic’ over U.S. visa waiver prospects,’’Central News Agency (Taiwan), July 6, 2011. http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?Type=aIPL&ID=201107060008.205. Ma Ying-jeou (president of Taiwan), meeting with Commissioners, August17, 2011, Taipei, Taiwan.206. Jorge Liu and Pin-yu Chen, ‘‘U.S. visa waiver talks on course: National ImmigrationAgency,’’ Focus Taiwan News Channel, June 21, 2011. http://www.wantchinatimes.com/news-subclass-cnt.aspx?cid=1101&MainCatID=&id=20110621000118.207. Shih Hsiu-chuan, ‘‘US–Taiwan draft treaty proposed,’’ Taipei Times, January8, 2011. http://www.taipeitimes.com/News/taiwan/archives/2011/01/08/2003492980;and Taipei Times, ‘‘US extradition treaty a priority: Shen,’’ May 26, 2011. http://www.taipeitimes. com/News/taiwan/archives/2011/05/26/2003504193u208. U.S.-China Economic and Security Review Commission, luncheon with TaipeiEconomic and Cultural Representative Office representatives, Washington, DC,June 14, 2011. See also Shih Hsiu-chuan, ‘‘US–Taiwan draft treaty proposed,’’ TaipeiTimes, January 8, 2011. http://www.taipeitimes.com/News/taiwan/archives/2011/01/08/2003492980; and Taipei Times, ‘‘US extradition treaty a priority: Shen,’’ May26, 2011. http://www.taipeitimes.com/News/taiwan/archives/2011/05/26/2003504193.209. T. Y. Wang, Wei-Chin Lee, and Ching-Hsin Yu, ‘‘Taiwan’s Expansion ofInternational Space: Opportunities and Challenges,’’ Journal of ContemporaryChina 20:69 (March 2011): 255.210. Officials of Taiwan’s Ministry of Economic Affairs, meeting with Commissioners,Taipei, Taiwan, August 17, 2011.211. China Post (Taiwan), ‘‘Taiwan, Singapore begin free trade agreement discussions,’’May 23, 2011. http://www.chinapost.com.tw/taiwan/national/national-news/2011/05/23/303403/Taiwan-Singapore.htm; David Brown, ‘‘China-Taiwan Relations:Steady as She Goes,’’ Comparative Connections (Washington, DC: Center for Strategicand International Studies, May 2011), p. 9; and Carnegie Endowment forInternational Peace, Challenges to Cross-Strait Relations in 2012, keynote addressby Lai Shin-yuan, July 7, 2011.212. Richard Bush, ‘‘Taiwan and East Asian Security,’’ Orbis 2:55 (Spring 2011):276; T. Y. Wang, Wei-Chin Lee, and Ching-Hsin Yu, ‘‘Taiwan’s Expansion of InternationalSpace: opportunities and challenges,’’ Journal of Contemporary China 20:69(March 2011): 255; and Center for National Policy, The Future of the US–TaiwanRelationship, statement by Robert Sutter, August 3, 2011.213. Carnegie Endowment for International Peace, Challenges to Cross-Strait Relationsin 2012, keynote address by Lai Shin-yuan, July 7, 2011.214. Central News Agency (Taiwan), ‘‘Beef issues are affecting TIFA [Trade andInvestment Framework Agreement] talks: US official,’’ April 13, 2011. http://www.chinapost.com.tw/taiwan/foreign-affairs/2011/04/13/298427/Beef-issues.htm; InsideU.S.-China Trade, ‘‘Hill Trade Leaders Slam Taiwan on New Barrier to U.S.Beef Exports,’’ February 18, 2011; and House Committee on Foreign Affairs, Hearingon Why Taiwan Matters, testimony of Rupert Hammond-Chambers, 112thCong., 1st sess., June 16, 2011.215. Inside U.S.-China Trade, ‘‘Hill Trade Leaders Slam Taiwan on New Barrierto U.S. Beef Exports,’’ February 18, 2011; House Committee on Foreign Affairs,Hearing on Why Taiwan Matters, testimony of Rupert Hammond-Chambers, 112thCong., 1st sess., June 16, 2011; U. S. Senate Committee on Finance, Press Release,‘‘Baucus, Hatch, Camp, Levin Urge Taiwan to End Unscientific Restriction on AmericanBeef Exports,’’ February 17, 2011. http://finance.senate.gov/newsroom/chairman/release/?id=67af6705–9378–4602-bb69–1733c2a20ef5; and Shih Hsiu-chuan, ‘‘Officialsindicate ractopamine ban remains in place,’’ Taipei Times, July 10, 2011. http://taipeitimes.com/News/front/archives/2011/07/10/2003507849.216. Office of the U.S. Trade Representative, ‘‘Joint Statement from USTR, USDA[U.S. Department of Agriculture] on Taiwan’s Actions to Unjustifiably Restrict U.S.Beef Imports in Violation of Our Bilateral Agreement,’’ January 2011. http://www.ustr.gov/about-us/press-office/press-releases/2010/january/joint-statement-ustrusda-taiwan%e2%80%99s-actions-unjusti.217. Rachel Chan, ‘‘Ma Calls for Enhancement of Taiwan-US Ties,’’ TaiwanToday, September 15, 2011. http://www.taiwantoday.tw/ct.asp?xItem=175991&CtNode=414.218. Bloomberg, ‘‘ECFA [Economic Cooperation Framework Agreement] ‘earlyharvest’ list tariff cuts come into effect,’’ January 2, 2011. http://www.taipeitimes.com/News/front/archives/2011/01/02/2003492456.219. David Brown, ‘‘China-Taiwan Relations: Steady As She Goes,’’ ComparativeConnections (Washington, DC: Center for Strategic and International Studies, May2011), p. 2.VerDate Nov 24 2008 13:46 Nov 10, 2011 Jkt 067464 PO 00000 Frm 00324 Fmt 6601 Sfmt 6621 G:\GSDD\USCC\2011\067464.XXX 067464
dkrause on DSKHT7XVN1PROD with $$_JOB313220. Ko Shu-ling, ‘‘Taipei, Beijing set up trade committee,’’ Taipei Times, January7, 2011. http://www.taipeitimes.com/News/front/archives/2011/01/07/2003492879.221. China Post (Taiwan), ‘‘ECFA [Economic Cooperation Framework Agreement]follow-up negotiations slated for Aug. 1–7,’’ August 1, 2011. http://www.chinapost.com.tw/taiwan/national/national-news/2011/08/01/311844/ECFA-follow-up.htm.222. Officials of Taiwan’s Ministry of Economic Affairs, meeting with Commissioners,Taipei, Taiwan, August 17, 2011.223. Taipei Economic and Cultural Office, ‘‘MOEA [Ministry of Economic Affairs]further eases rules on mainland Chinese investment,’’ March 3, 2011. http://www.roctaiwan.org/us/ct.asp?xItem=185760&ctNode=2300&mp=12.224. Mainland Affairs Council, Cross-Strait Economic Statistics Monthly No. 217(Taipei, Taiwan: May 30, 2011). http://www.mac.gov.tw/ct.asp?xItem=95294&ctNode=5934&mp=3.225. China Post (Taiwan), ‘‘Chinese investment in Taiwan remains lackluster,’’December 20, 2010. http://www.asianewsnet.net/home/news.php?id=16246.226. Fanny Liu and Paul Mozur, ‘‘Taiwan Opens More Sectors to Chinese Investors,’’Wall Street Journal, March 2, 2011. http://online.wsj.com/article/SB10001424052748703559604576176074279169 148.html.227. Fanny Liu and Paul Mozur, ‘‘Taiwan, China Discuss Possible Rare-EarthsDeal,’’ Wall Street Journal, May 19, 2011. http://online.wsj.com/article/SB100014240527487035091045763310021730 01170.html.228 David Brown, ‘‘China-Taiwan Relations: Steady As She Goes,’’ ComparativeConnections (Washington, DC: Center for Strategic and International Studies, May2011), p. 6.229. Mainland Affairs Council, Cross-Strait Economic Statistics Monthly No. 217(Taipei, Taiwan: May 30, 2011), p. 14. http://www.mac.gov.tw/public/Attachment/15301134762.pdf.230. Mainland Affairs Council, Cross-Strait Economic Statistics Monthly No. 221(Taipei, Taiwan: August 29, 2011), p. 14. http://www.mac.gov.tw/public/Attachment/182914582215.pdf.231. U.S. Census Bureau, ‘‘Trade in Goods with Taiwan’’ (Washington, DC: U.S.Department of Commerce). http://www.census.gov/foreign-trade/balance/c5830.html.232. Wendell Minnick, ‘‘Taiwan President Urges U.S. to Release F–16s,’’ DefenseNews, May 13, 2011 http://www.defensenews.com/story.php?i=6499441&c=AIR&s=ASI.233. Information Office of the State Council, China’s National Defense in 2010(Beijing, China: January 2011).234. Information Office of the State Council, China’s National Defense in 2010(Beijing, China: January 2011); and Ko Shu-ling, ‘‘China’s call for CBMs [confidencebuilding measures] Rejected,’’ Central News Agency (Taiwan), April 1, 2011. http://www.taipeitimes.com/News/taiwan/archives/2011/04/01/2003499639.235. Ko Shu-ling, ‘‘China’s call for CBMs [confidence building measures] measuresRejected,’’ Central News Agency (Taiwan), April 1, 2011. http://www.taipeitimes.com/News/taiwan/archives/2011/04/01/2003499639.236. U.S. Department of Defense, Joint Press Conference with Adm. Mullen andGen. Chen from the Pentagon, May 18, 2011. http://www.defense.gov/transcripts/transcripts.aspx?transcriptid=4824.237. Office of the Secretary of Defense, Military and Security Developments Involvingthe People’s Republic of China 2011 (Washington, DC: U.S. Department ofDefense, August, 2011), p. 2. Taiwan’s recently released defense white paper positsa slightly higher number at more than 1,400. However, this number is slightly ambiguous,since it includes both short-range ballistic missiles and ground-launchedcruise missiles. Taiwan Ministry of National Defense, ‘‘Zhonghua Minguo Yi BaiNian Guofang Baogaoshu’’ (2011 National Defense Report, the Republic of China)(Taipei, Taiwan: July 2011), p. 69.238. Agence France-Presse, ‘‘Ten mainland moles ‘infilitrated’ Taipei,’’ February13, 2011. http://www.google.com/hostednews/afp/article/ALeqM5gDv7A4cNvPRI_wO5Kb3lO_3–GfeQ?docId=CNG.7fc4d4a85840416799351787f9748bf5.301.239. Agence France-Presse, ‘‘Taiwan defense damaged, says ex-spy master,’’February 14, 2011. http://www.scmp.com/portal/site/SCMP/menuitem.2af62ecb329d3d7733492d9253a0a0a0/?vgnextoid=547bb73881e210VgnVCM100000360a0a0aRCRD&ss=china&s= news.240. Joseph Yeh, ‘‘No High-Ranking Officers Involved in Latest Alleged Spy Case:MND [Ministry of National Defense],’’ China Post (Taiwan), June 15, 2011. http://www.chinapost.com.tw/taiwan/china-taiwan-relations/2011/06/15/306244/No-highranking.htm.VerDate Nov 24 2008 13:46 Nov 10, 2011 Jkt 067464 PO 00000 Frm 00325 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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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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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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181ligence, surveillance, and recon
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187Therefore, the PLA maintains the
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189Of import, the PLA’s geographi
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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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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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Page 289 and 290: 281trade, and dispute settlement. 2
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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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