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

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dkrause on DSKHT7XVN1PROD with $$_JOB35096. Shirley A. Kan, ‘‘U.S.-China Military Contacts: Issues for Congress’’ (Washington,DC: Congressional Research Service, December 2010), pp. 3–4.97. Chen Bingde ‘‘Speech presented at the National Defense University’’ (Washington,DC, May 20, 2011). Notes taken by USCC staff.98. According to scholar Michael Swaine, the term ‘‘core interests’’ appeared inarticles in the People’s Daily three times in 2003; 55 times in 2005; 95 times in2008; 260 times in 2009; and 325 times in 2010. See Michael Swaine, ‘‘China’s AssertiveBehavior, Part One: On ‘Core Interests’,’’ China Leadership Monitor 34(2011).99. Comments made by Chinese academics in a roundtable discussion withmembers of the U.S.-China Economic and Security Review Commission, U.S. Consulatein Shanghai, August 11, 2011.100. Huai Chengbo, ‘‘How Do We Understand ‘National Core Interests’?’’ (ZenmoLijie ‘‘Guojia Hexin Liyi’’?), Qstheory.cn (website of the official CCP theoretical journalQiushi), January 25, 2011. http://www.qstheory.cn/hqwg/2011/201102/201101/t20110125_63092.htm. Translation by USCC staff.101. PRC State Councilor Dai Bingguo, remarks made at the closing of the U.S.-China Strategic and Economic Dialogue, Washington, DC, July 28, 2009. http://www.state.gov/secretary/rm/2009a/july/126599.htm. Chinese academics have citedMr. Dai’s remarks as the authoritative position of the CCP, as with comments madeby Chinese academics in a roundtable discussion with members of the U.S.-ChinaEconomic and Security Review Commission, U.S. Consulate in Shanghai, August 11,2011.102. U.S.-China Economic and Security Review Commission, Hearing on China’sNarratives on National Security Policy, written testimony of John Park, March 10,2011.103. Greg Sheridan, ‘‘China Actions Meant as Test, Hillary Clinton Says,’’ Australian(Sydney, Australia), November 9, 2010.104. John Pomfret, ‘‘Beijing Claims ‘Indisputable Sovereignty’ Over South ChinaSea,’’ Washington Post, July 31, 2010.105. Edward Wong, ‘‘China Hedges Over Whether South China Sea Is a ‘Core Interest’Worth War,’’ New York Times, March 30, 2011. For commentary from aprominent PRC academic that seeks to downplay the significance of this controversy,see Wang Jisi, ‘‘A Rising Great Power Finds its Way,’’ Foreign Affairs(March/April 2011).106. Huai Chengbo, ‘‘How Do We Understand ‘National Core Interests’?’’ (ZenmoLijie ‘‘Guojia Hexin Liyi’’?), Qstheory.cn (website of the official CCP theoretical journalQiushi), January 25, 2011. http://www.qstheory.cn/hqwg/2011/201102/201101/t20110125_ 63092.htm.107. John Milligan-Whyte and Dai Min, ‘‘Getting Tough or a New Era of Partnership?’’People’s Daily Online (in English), March 26, 2010. http://english.peopledaily.com.cn/90001/90780/91343/6932227.html.108. Comments by Hu Jintao made in Islamabad, Pakistan, on November 24,2006, as cited in Michael Swaine, ‘‘China’s Assertive Behavior, Part One: On ‘CoreInterests’,’’ China Leadership Monitor 34 (2011).109. Da Wei, ‘‘A Clear Signal of ‘Core Interests’ to the World,’’ China Daily, August2, 2010. http://www.chinadaily.com.cn/usa/2010-08/02/content_11083124.htm.110. U.S.-China Economic and Security Review Commission, Hearing on China’sNarratives on National Security Policy, written statement of Alison Kaufman (‘‘The‘Century of Humiliation’ and China’s National Narratives’’), March 10, 2011. For astatement by a paramount Chinese leader on the direct linkage between the historyof imperialism and China’s present-day circumstances, see Deng Xiaoping, ‘‘WeMust Adhere To Socialism and Prevent Peaceful Evolution Towards Capitalism’’ (excerptfrom a conversation with Julius Nyerere, former president of Tanzania), November23, 1989. From the Selected Works of Deng Xiaoping, Vol. 3 (Beijing, China:Foreign Languages Press, 1994). http://www.archive.org/stream/SelectedWorksOfDengXiaopingVol.3/Deng03_djvu.txt.111. ‘‘China is to a considerable extent a bargaining culture in which prior bargainsare open for renegotiation whenever the underlying power positions, or broadercircumstances, of the two (or more) parties shift. China, meaning its governmentand its people, has been chafing at some of the implicit or explicit bargains struckin the past with the United States, most notably regarding Taiwan, the U.S. military’sclose-in surveillance of the Mainland, visits to the White House by the DalaiLama, vulnerability of the PRC’s nuclear deterrent, and so forth. Now that Chinaperceives itself stronger, and America and its allies on a trajectory of decreaseddominance, it is no surprise Beijing is asking to ‘renegotiate’ the prior bargains itfinds most unsatisfactory.’’ U.S.-China Economic and Security Review Commission,VerDate Nov 24 2008 13:46 Nov 10, 2011 Jkt 067464 PO 00000 Frm 00362 Fmt 6601 Sfmt 6621 G:\GSDD\USCC\2011\067464.XXX 067464
dkrause on DSKHT7XVN1PROD with $$_JOB351Hearing on China’s Narratives on National Security Policy, written testimony ofDavid Lampton, March 10, 2011.112. Wang Guosheng, ‘‘Comments and Analysis on China’s Traditional Strategyof Defense,’’ Zhongguo Junshi Kexue (China Military Science) 4 (2005).113. Alastair Iain Johnston, Cultural Realism: Strategic Culture and GrandStrategy in Chinese History (Princeton, NJ: Princeton University Press, 1995).114. Andrew Scobell, China and Strategic Culture (Carlisle, PA: U.S. Army WarCollege Strategic Studies Institute, 2002), p. V. http://www.strategicstudies institute.army.mil/pdffiles/pub60.pdf.115. Xiaoming Zhang, ‘‘China’s 1979 War with Vietnam: A Reassessment,’’ ChinaQuarterly 184 (December 2005). http://www.viet-studies.info/kinhte/China G7
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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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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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Page 383 and 384: 375ecutive Schedule under section 5
Page 395 and 396: APPENDIX IIIPUBLIC HEARINGS OF THE
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Page 407 and 408: 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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