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

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dkrause on DSKHT7XVN1PROD with $$_JOB314241. Agence France-Presse, ‘‘Ten mainland moles ‘infiltrated’ Taipei,’’ February13, 2011. http://www.google.com/hostednews/afp/article/ALeqM5gDv7A4cNvPRI_wO5Kb3lO_3-GfeQ?docId=CNG.7fc 4d4a8584041 6799351787f9748bf5.301.242. Taiwan Today, ‘‘Military stages highway landing, takeoff drill in Hainan,’’April 12, 2011. http://www.taiwantoday.tw/ct.asp?xitem=159578&CtNode=414.243. Paul Mozur, ‘‘Taiwan Seeks to Move U.S. on Arms Sales,’’ Wall Street Journal,April 13, 2011. http://online.wsj.com/article/SB10001424052748704336504576258711163099214.html.244. Paul Mozur, ‘‘Taiwan Produces New Type of Missile,’’ Wall Street Journal,December 10, 2010. http://online.wsj.com/article/SB10001424052748704720804576009320033954668.html?mod=WSJ_hps_sections_world.245. Wendell Minnick, ‘‘Taiwan’s ‘Carrier Killer’ Aims To Sink China’s Carrier,’’Defense News, August 10, 2011. http://www.defensenews.com/story.php?i=7356595.246. Paul Mozur, ‘‘Taiwan Produces New Type of Missile,’’ Wall Street Journal,December 10, 2010. http://online.wsj.com/article/SB10001424052748704720804576009320033954668.html?mod=WSJ_hps_sections_world.247. Agence France-Presse, ‘‘Taiwan to Deploy Supersonic Missile on Warships,’’May 8, 2011. http://www.defensenews.com/story.php?i=6447237&c=ASI&s=SEA.248. Agence France-Presse, ‘‘Taiwan supersonic missile test flops,’’ June 28, 2011.http: // www.scmp.com/portal/site/SCMP/menuitem.2af62ecb329d3d7733492d9253a0a0a0/?vgnextoid=5f629af3694d0310VgnVCM100000360a0a0aRCRD&ss=china&s=news.249. Agence France-Presse, ‘‘Taiwan inaugurates missile ships amid buildupvow,’’ April 7, 2011. http://www.defensenews.com/story.php?c=ASI&s=TOP&i=6173472; and Agence France-Presse, ‘‘Taiwan Inaugurates ‘Stealth’ Missile Boat Squadron,’’May 18, 2010. http://www.defensenews.com/story.php?i=4630623.250. J. Michael Cole, ‘‘Taiwanese military reportedly develops ‘stealth’ coating,’’Taipei Times, July 5, 2011. http://www.taipeitimes.com/News/front/archives/2011/07/05/2003507440.251. Agence France-Presse, ‘‘Taiwan unveils upgraded fighter jets,’’ June 30,2011. http://www.google.com/hostednews/afp/article/ALeqM5j2duqRzA_oUE2O2ow3l17zx3xmJw?docId=CNG.1c577930381fad6dfc4d633656a73e2f.61.252. Aries Poon and Fanny Liu, ‘‘Taiwan’s Test of Missiles Falls Short,’’ WallStreet Journal, January 19, 2011. http://online.wsj.com/article/SB10001424052748703954004576089404084137200.html.253. Agence France-Presse, ‘‘Taiwan air force missile test flops again,’’ March 23,2011. http://www.google.com/hostednews/afp/article/ALeqM5jMBuC2_AlSKy8KjrkC9kwG7Ank4g?docId=CNG.708d1a839f1c5f21bc13ae791866aef8.2a1.254. Officials of Taiwan’s Ministry of National Defense, meeting with Commissioners,Taipei, Taiwan, August 17, 2011.255. Vincent Y. Chao, ‘‘Pundits say defense cuts invite aggression,’’ Taipei Times,June 22, 2011. http://www.taipeitimes.com/News/front/archives/2011/06/22/2003506383; and Agence France-Presse, ‘‘Taiwan to cut 9,200 troops as ties warm,’’March 7, 2011. http://www.scmp.com/portal/site/SCMP/menuitem.2af62ecb329d3d7733492d9253a0a0a0/?vgnextoid=dd0dc15ea8e8e210VgnVCM100000360a0a0aRCRD&ss=china&s=news.256. Agence France-Presse, ‘‘Taiwan to Delay Buying Arms From US: Lawmaker,’’May 10, 2011. http://www.defensenews.com/story.php?i=6460744&c=ASI&s = TOP.257. Associated Press,’’Taiwan to postpone purchases of US weapons,’’ May 10,2011. http://www.cbsnews.com/stories/2011/05/10/ap/asia/main20061683.shtml.258. Office of the Assistant Secretary of Defense (Public Affairs), ‘‘Contracts’’ No.566–11 (Washington, DC: U.S. Department of Defense, June 30, 2011). http://www.defense.gov/Contracts/Contract.aspx?ContractID=4568.259. Defense Security Cooperation Agency, ‘‘News Release: Taipei Economic andCultural Representative Office in the United States—Retrofit of F–16A/B Aircraft’’(Washington, DC: U.S. Department of Defense, September 21, 2011).260. Defense Security Cooperation Agency, ‘‘News Release: Taipei Economic andCultural Representative Office in the United States—Retrofit of F–16A/B Aircraft’’(Washington, DC: U.S. Department of Defense, September 21, 2011).261. U.S. Department of Defense, ‘‘Joint Press Conference with Secretary Gatesand General Liang from Beijing, China,’’ January 10, 2011. http://www.defense.gov/transcripts/transcript.aspx?transcriptid=4750; and Amy Chang, ‘‘The Chinese People’sLiberation Army Delegation Visit to the United States, May 2011: A Summaryof Key Actors and Issues,’’ Staff Backgrounder (Washington, DC: U.S.-China Economicand Security Review Commission, June 30, 2011), p. 1.262. Xinhua, ‘‘Foreign Ministry Spokesman Ma Zhaoxu Expounds on China’s SolemnStance on the Announced Arms Sale Package to Taiwan by the US Government,’’September 21, 2011. http://www.fmprc.gov.cn/eng/xwfw/s2510/t861278.htm.VerDate Nov 24 2008 13:46 Nov 10, 2011 Jkt 067464 PO 00000 Frm 00326 Fmt 6601 Sfmt 6621 G:\GSDD\USCC\2011\067464.XXX 067464
dkrause on DSKHT7XVN1PROD with $$_JOB315263. Yang Jiechi (foreign minister of China), speech to the National Committeeon U.S.-China Relations and the U.S.-China Business Council, September 22, 2011,New York City. http://www.mfa.gov.cn/chn/pds/ziliao/zyjh/t861433.htm.264. Josh Rogin, ‘‘China to Suspend some Military-to-Military Activities with U.S.over Taiwan Arms Sales,’’ Financial Times, September 26, 2011.265. Shirley A. Kan, ‘‘Taiwan: Major U.S. Arms Sales since 1990’’ (Washington,DC: Congressional Research Service, August 2, 2011), pp. 19–23.266. Ma Ying-jeou (president of Taiwan), meeting with Commissioners, August17, 2011, Taipei, Taiwan.267. Zhang Fan, ‘‘Zongtong Pan Jixu Zhengqu F–16C/D’’ (President Hopes to Continueto Fight for F–16C/D), Radio Taiwan International, September 22, 1011.http://news.rti.org.tw/index_newsContent.aspx?nid=319109.268. Shirley A. Kan, ‘‘Taiwan: Major U.S. Arms Sales since 1990’’ (Washington,DC: Congressional Research Service, August 2, 2011), pp. 10–14.269. Ma Ying-jeou (president of Taiwan), meeting with Commissioners, August17, 2011, Taipei, Taiwan.270. Kao Hua-chu (minister of Defense, Taiwan), meeting with Commissioners,Taipei, Taiwan, August 17, 2011.271. National People’s Congress of the People’s Republic of China, The Basic Lawof the Hong Kong Special Administrative Region of the People’s Republic of China(Beijing, China: April 4, 1990). http://www.basiclaw.gov.hk/en/basiclawtext/images/basiclaw_full_text.pdf.272. Frank Ching, ‘‘Hong Kong’s Autonomy Slips Away,’’ Hong Kong Journal(April 2011). http://www.hkjournal.org/archive/2011_summer/1.htm; Li Keqiang,‘‘Step Up Cooperation for Development and Prosperity’’ (Speech at the Forum on12th Five-Year Plan and Mainland-Hong Kong Economic, Trade and Financial Cooperation,’’Hong Kong, August 17, 2011).273. Li Keqiang, ‘‘Step Up Cooperation for Development and Prosperity’’ (Speechat the Forum on the 12th Five-Year Plan and Mainland-Hong Kong Economic,Trade and Financial Cooperation,’’ Hong Kong, August 17, 2011).274. Koh Gui Qing, ‘‘Factbox: How will China internationalize the yuan?’’ Reuters,August 31, 2011. http://www.reuters.com/article/2011/08/24/us-china-yuanfactbox-idUSTRE77N1XG20110824;Robert Cookson, ‘‘Renminbi has yet to findgreat favour in loan market,’’ Financial Times, September 13, 2011. http://www.ft.com/cms/s/0/816111d8-d2ec-11e0–9aae-00144feab49a.html#axzz1YXNp9EeK.275. Hong Kong Economic and Trade Office, ‘‘Cato Institute Releases 15th Reporton Global Economic Freedom’’ (Hong Kong, SAR [Special Administrative Region]:September 20, 2011). http://www.sacbee.com/2011/09/20/3925114/hong-kong-remainsworlds-freest.html.276. Goldman Sachs representative, meeting with the U.S.-China Economic andSecurity Review Commission, Hong Kong, August 15, 2011.277. Li Keqiang, ‘‘Step Up Cooperation for Development and Prosperity’’ (Speechat the Forum on 12th Five-Year Plan and Mainland-Hong Kong Economic, Tradeand Financial Cooperation,’’ Hong Kong, August 17, 2011); Wang Yong, ‘‘Internationalizingthe Yuan: Completing the Circuit’’ (Ontario, Canada: The Centre forInternational Governance Innovation, August 31, 2011). http://www.cigionline.org/publications/2011/8/internationalizing-yuan-completing-circuit.278. Goldman Sachs representatives, Hong Kong Economic and Trade Office officials,and journalists, meetings with the U.S.-China Economic and Security ReviewCommission, Hong Kong, August 15, 2011.279. Hong Kong Economic and Trade Office officials, meetings with U.S.-ChinaEconomic and Security Review Commission, Hong Kong, August 15, 2011.280. Andy Lau, ‘‘KC Chan: Yuan globalization to drive growth of China’s financialmarket,’’ International Business Times, May 21, 2011. http://hken.ibtimes.com/articles/149626/20110521/china-gdp-yuan-hong-kong-rmb-qfii-qdii.htm; Hong KongInformation Services Department, ‘‘RMB deposits up 6.4%,’’ September 30, 2011.http://www.news.gov.hk/en/categories/finance/html/2011/09/20110930-165401.shtml.281. Ben Richardson and Sophie Leung, ‘‘China Vice Premier’s Hong Kong TourShows City in Dual Light,’’ Bloomberg News, August 16, 2011. http://www.bloomberg.com/news/2011–08–16/chinese-vice-premier-s-hong-kong-tour-shows-city-indual-light.html.282. Anthony B. L. Cheung, ‘‘Hong Kong: A City of Unhappiness,’’ Hong KongJournal (July 2011). http://www.hkjournal.org/archive/2011_fall/1.htm; RobertKeatley, ‘‘Mid-Year Malaise: No Progress on Leading Issues,’’ Hong Kong Journal(July 2011). http://www.hkjournal.org/archive/commentaries/072011.htm; and KevinDrew, ‘‘Growing Discontent Seen in Annual Hong Kong Protest,’’ New York Times,July 1, 2011. http://www.nytimes.com/2011/07/02/world/asia/02iht-hong02.html?pagewanted=all.VerDate Nov 24 2008 13:46 Nov 10, 2011 Jkt 067464 PO 00000 Frm 00327 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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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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