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Agence France-Presse, ‘‘Taiwan inaugurates missile ships amid buildupvow,’’ April 7, <strong>2011</strong>. http://www.defensenews.com/s<strong>to</strong>ry.php?c=ASI&s=TOP&i=6173472; <strong>and</strong> Agence France-Presse, ‘‘Taiwan Inaugurates ‘Stealth’ Missile Boat Squadron,’’May 18, 2010. http://www.defensenews.com/s<strong>to</strong>ry.php?i=4630623.250. J. Michael Cole, ‘‘Taiwanese military <strong>report</strong>edly develops ‘stealth’ coating,’’Taipei Times, July 5, <strong>2011</strong>. http://www.taipeitimes.com/News/front/archives/<strong>2011</strong>/07/05/2003507440.251. Agence France-Presse, ‘‘Taiwan unveils upgraded fighter jets,’’ June 30,<strong>2011</strong>. http://www.google.com/hostednews/afp/article/ALeqM5j2duqRzA_oUE2O2ow3l17zx3xmJw?docId=CNG.1c577930381fad6dfc4d633656a73e2f.61.252. Aries Poon <strong>and</strong> Fanny Liu, ‘‘Taiwan’s Test of Missiles Falls Short,’’ WallStreet Journal, January 19, <strong>2011</strong>. http://online.wsj.com/article/SB10001424052748703954004576089404084137200.html.253. Agence France-Presse, ‘‘Taiwan air force missile test flops again,’’ March 23,<strong>2011</strong>. 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, <strong>2011</strong>.255. Vincent Y. Chao, ‘‘Pundits say defense cuts invite aggression,’’ Taipei Times,June 22, <strong>2011</strong>. http://www.taipeitimes.com/News/front/archives/<strong>2011</strong>/06/22/2003506383; <strong>and</strong> Agence France-Presse, ‘‘Taiwan <strong>to</strong> cut 9,200 troops as ties warm,’’March 7, <strong>2011</strong>. http://www.scmp.com/portal/site/SCMP/menuitem.2af62ecb329d3d7733492d9253a0a0a0/?vgnex<strong>to</strong>id=dd0dc15ea8e8e210VgnVCM100000360a0a0aRCRD&ss=china&s=news.256. Agence France-Presse, ‘‘Taiwan <strong>to</strong> Delay Buying Arms From US: Lawmaker,’’May 10, <strong>2011</strong>. http://www.defensenews.com/s<strong>to</strong>ry.php?i=6460744&c=ASI&s = TOP.257. Associated Press,’’Taiwan <strong>to</strong> postpone purchases of US weapons,’’ May 10,<strong>2011</strong>. http://www.cbsnews.com/s<strong>to</strong>ries/<strong>2011</strong>/05/10/ap/asia/main20061683.shtml.258. Office of the Assistant Secretary of Defense (Public Affairs), ‘‘Contracts’’ No.566–11 (Washing<strong>to</strong>n, DC: U.S. Department of Defense, June 30, <strong>2011</strong>). http://www.defense.gov/Contracts/Contract.aspx?ContractID=4568.259. Defense <strong>Security</strong> Cooperation Agency, ‘‘News Release: Taipei <strong>Economic</strong> <strong>and</strong>Cultural Representative Office in the United States—Retrofit of F–16A/B Aircraft’’(Washing<strong>to</strong>n, DC: U.S. Department of Defense, September 21, <strong>2011</strong>).260. Defense <strong>Security</strong> Cooperation Agency, ‘‘News Release: Taipei <strong>Economic</strong> <strong>and</strong>Cultural Representative Office in the United States—Retrofit of F–16A/B Aircraft’’(Washing<strong>to</strong>n, DC: U.S. Department of Defense, September 21, <strong>2011</strong>).261. U.S. Department of Defense, ‘‘Joint Press Conference with Secretary Gates<strong>and</strong> General Liang from Beijing, <strong>China</strong>,’’ January 10, <strong>2011</strong>. http://www.defense.gov/transcripts/transcript.aspx?transcriptid=4750; <strong>and</strong> Amy Chang, ‘‘The Chinese People’sLiberation Army Delegation Visit <strong>to</strong> the United States, May <strong>2011</strong>: A Summaryof Key Ac<strong>to</strong>rs <strong>and</strong> Issues,’’ Staff Backgrounder (Washing<strong>to</strong>n, DC: U.S.-<strong>China</strong> <strong>Economic</strong><strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, June 30, <strong>2011</strong>), p. 1.262. Xinhua, ‘‘Foreign Ministry Spokesman Ma Zhaoxu Expounds on <strong>China</strong>’s SolemnStance on the Announced Arms Sale Package <strong>to</strong> Taiwan by the US Government,’’September 21, <strong>2011</strong>. http://www.fmprc.gov.cn/eng/xwfw/s2510/t861278.htm.VerDate Nov 24 2008 13:46 Nov 10, <strong>2011</strong> Jkt 067464 PO 00000 Frm 00326 Fmt 6601 Sfmt 6621 G:\GSDD\USCC\<strong>2011</strong>\067464.XXX 067464
dkrause on DSKHT7XVN1PROD with $$_JOB315263. Yang Jiechi (foreign minister of <strong>China</strong>), speech <strong>to</strong> the National Committeeon U.S.-<strong>China</strong> Relations <strong>and</strong> the U.S.-<strong>China</strong> Business Council, September 22, <strong>2011</strong>,New York City. http://www.mfa.gov.cn/chn/pds/ziliao/zyjh/t861433.htm.264. Josh Rogin, ‘‘<strong>China</strong> <strong>to</strong> Suspend some Military-<strong>to</strong>-Military Activities with U.S.over Taiwan Arms Sales,’’ Financial Times, September 26, <strong>2011</strong>.265. Shirley A. Kan, ‘‘Taiwan: Major U.S. Arms Sales since 1990’’ (Washing<strong>to</strong>n,DC: Congressional Research Service, August 2, <strong>2011</strong>), pp. 19–23.266. Ma Ying-jeou (president of Taiwan), meeting with Commissioners, August17, <strong>2011</strong>, Taipei, Taiwan.267. Zhang Fan, ‘‘Zong<strong>to</strong>ng Pan Jixu Zhengqu F–16C/D’’ (President Hopes <strong>to</strong> Continue<strong>to</strong> 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’’ (Washing<strong>to</strong>n,DC: Congressional Research Service, August 2, <strong>2011</strong>), pp. 10–14.269. Ma Ying-jeou (president of Taiwan), meeting with Commissioners, August17, <strong>2011</strong>, Taipei, Taiwan.270. Kao Hua-chu (minister of Defense, Taiwan), meeting with Commissioners,Taipei, Taiwan, August 17, <strong>2011</strong>.271. National People’s Congress of the People’s Republic of <strong>China</strong>, The Basic Lawof the Hong Kong Special Administrative Region of the People’s Republic of <strong>China</strong>(Beijing, <strong>China</strong>: April 4, 1990). http://www.basiclaw.gov.hk/en/basiclawtext/images/basiclaw_full_text.pdf.272. Frank Ching, ‘‘Hong Kong’s Au<strong>to</strong>nomy Slips Away,’’ Hong Kong Journal(April <strong>2011</strong>). http://www.hkjournal.org/archive/<strong>2011</strong>_summer/1.htm; Li Keqiang,‘‘Step Up Cooperation for Development <strong>and</strong> Prosperity’’ (Speech at the Forum on12th Five-Year Plan <strong>and</strong> Mainl<strong>and</strong>-Hong Kong <strong>Economic</strong>, Trade <strong>and</strong> Financial Cooperation,’’Hong Kong, August 17, <strong>2011</strong>).273. Li Keqiang, ‘‘Step Up Cooperation for Development <strong>and</strong> Prosperity’’ (Speechat the Forum on the 12th Five-Year Plan <strong>and</strong> Mainl<strong>and</strong>-Hong Kong <strong>Economic</strong>,Trade <strong>and</strong> Financial Cooperation,’’ Hong Kong, August 17, <strong>2011</strong>).274. Koh Gui Qing, ‘‘Factbox: How will <strong>China</strong> internationalize the yuan?’’ Reuters,August 31, <strong>2011</strong>. http://www.reuters.com/article/<strong>2011</strong>/08/24/us-china-yuanfactbox-idUSTRE77N1XG<strong>2011</strong>0824;Robert Cookson, ‘‘Renminbi has yet <strong>to</strong> findgreat favour in loan market,’’ Financial Times, September 13, <strong>2011</strong>. http://www.ft.com/cms/s/0/816111d8-d2ec-11e0–9aae-00144feab49a.html#axzz1YXNp9EeK.275. Hong Kong <strong>Economic</strong> <strong>and</strong> Trade Office, ‘‘Ca<strong>to</strong> Institute Releases 15th Repor<strong>to</strong>n Global <strong>Economic</strong> Freedom’’ (Hong Kong, SAR [Special Administrative Region]:September 20, <strong>2011</strong>). http://www.sacbee.com/<strong>2011</strong>/09/20/3925114/hong-kong-remainsworlds-freest.html.276. Goldman Sachs representative, meeting with the U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong><strong>Security</strong> <strong>Review</strong> Commission, Hong Kong, August 15, <strong>2011</strong>.277. Li Keqiang, ‘‘Step Up Cooperation for Development <strong>and</strong> Prosperity’’ (Speechat the Forum on 12th Five-Year Plan <strong>and</strong> Mainl<strong>and</strong>-Hong Kong <strong>Economic</strong>, Trade<strong>and</strong> Financial Cooperation,’’ Hong Kong, August 17, <strong>2011</strong>); Wang Yong, ‘‘Internationalizingthe Yuan: Completing the Circuit’’ (Ontario, Canada: The Centre forInternational Governance Innovation, August 31, <strong>2011</strong>). http://www.cigionline.org/publications/<strong>2011</strong>/8/internationalizing-yuan-completing-circuit.278. Goldman Sachs representatives, Hong Kong <strong>Economic</strong> <strong>and</strong> Trade Office officials,<strong>and</strong> journalists, meetings with the U.S.-<strong>China</strong> <strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong>Commission, Hong Kong, August 15, <strong>2011</strong>.279. Hong Kong <strong>Economic</strong> <strong>and</strong> Trade Office officials, meetings with U.S.-<strong>China</strong><strong>Economic</strong> <strong>and</strong> <strong>Security</strong> <strong>Review</strong> Commission, Hong Kong, August 15, <strong>2011</strong>.280. Andy Lau, ‘‘KC Chan: Yuan globalization <strong>to</strong> drive growth of <strong>China</strong>’s financialmarket,’’ International Business Times, May 21, <strong>2011</strong>. http://hken.ibtimes.com/articles/149626/<strong>2011</strong>0521/china-gdp-yuan-hong-kong-rmb-qfii-qdii.htm; Hong KongInformation Services Department, ‘‘RMB deposits up 6.4%,’’ September 30, <strong>2011</strong>.http://www.news.gov.hk/en/categories/finance/html/<strong>2011</strong>/09/<strong>2011</strong>0930-165401.shtml.281. Ben Richardson <strong>and</strong> Sophie Leung, ‘‘<strong>China</strong> Vice Premier’s Hong Kong TourShows City in Dual Light,’’ Bloomberg News, August 16, <strong>2011</strong>. http://www.bloomberg.com/news/<strong>2011</strong>–08–16/chinese-vice-premier-s-hong-kong-<strong>to</strong>ur-shows-city-indual-light.html.282. Anthony B. L. Cheung, ‘‘Hong Kong: A City of Unhappiness,’’ Hong KongJournal (July <strong>2011</strong>). http://www.hkjournal.org/archive/<strong>2011</strong>_fall/1.htm; RobertKeatley, ‘‘Mid-Year Malaise: No Progress on Leading Issues,’’ Hong Kong Journal(July <strong>2011</strong>). http://www.hkjournal.org/archive/commentaries/07<strong>2011</strong>.htm; <strong>and</strong> KevinDrew, ‘‘Growing Discontent Seen in Annual Hong Kong Protest,’’ New York Times,July 1, <strong>2011</strong>. http://www.nytimes.com/<strong>2011</strong>/07/02/world/asia/02iht-hong02.html?pagewanted=all.VerDate Nov 24 2008 13:46 Nov 10, <strong>2011</strong> Jkt 067464 PO 00000 Frm 00327 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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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 331 and 332: 323mation Office. Day-to-day superv
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- Page 335 and 336: 327Although the slogans change over
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- Page 343 and 344: 335What Constitutes a ‘‘Core In
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- Page 347 and 348: 339Selected CAIFC/CPD Track Two Exc
- Page 349 and 350: 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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