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

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dkrause on DSKHT7XVN1PROD with $$_JOB370(B) The acquisition by the People’s Republic of China of advancedmilitary or dual-use technologies from the United States by trade(including procurement) and other technology transfers, especiallythose transfers, if any, that contribute to the proliferation of weaponsof mass destruction or their delivery systems, or that undermineinternational agreements or United States laws with respectto nonproliferation.(C) Any transfers, other than those identified under subparagraph(B), to the military systems of the People’s Republic of Chinamade by United States firms and United States-based multinationalcorporations.(D) An analysis of the statements and writing of the People’s Republicof China officials and officially-sanctioned writings that bearon the intentions, if any, of the Government of the People’s Republicof China regarding the pursuit of military competition with, andleverage over, or cooperation with, the United States and the Asianallies of the United States.(E) The military actions taken by the Government of the People’sRepublic of China during the preceding year that bear on the nationalsecurity of the United States and the regional stability of theAsian allies of the United States.(F) The effects, if any, on the national security interests of theUnited States of the use by the People’s Republic of China of financialtransactions and capital flow and currency manipulations.(G) Any action taken by the Government of the People’s Republicof China in the context of the World Trade Organization that is adverseor favorable to the United States national security interests.(H) Patterns of trade and investment between the People’s Republicof China and its major trading partners, other than theUnited States, that appear to be substantively different from tradeand investment patterns with the United States and whether thedifferences have any national security implications for the UnitedStates.(I) The extent to which the trade surplus of the People’s Republicof China with the United States enhances the military budget ofthe People’s Republic of China.(J) An overall assessment of the state of the security challengespresented by the People’s Republic of China to the United Statesand whether the security challenges are increasing or decreasingfrom previous years.(3) Recommendations of report. Each report under paragraph (1)shall also include recommendations for action by Congress or thePresident, or both, including specific recommendations for theUnited States to invoke Article XXI (relating to security exceptions)of the General Agreement on Tariffs and Trade 1994 with respectto the People’s Republic of China, as a result of any adverse impacton the national security interests of the United States.(d) Hearings.(1) In general. The Commission or, at its direction, any panel ormember of the Commission, may for the purpose of carrying outthe provisions of this section, hold hearings, sit and act at timesand places, take testimony, receive evidence, and administer oathsto the extent that the Commission or any panel or member considersadvisable.VerDate Nov 24 2008 13:46 Nov 10, 2011 Jkt 067464 PO 00000 Frm 00382 Fmt 6601 Sfmt 6601 G:\GSDD\USCC\2011\067464.XXX 067464
dkrause on DSKHT7XVN1PROD with $$_JOB371(2) Information. The Commission may secure directly from theDepartment of Defense, the Central Intelligence Agency, and anyother Federal department or agency information that the Commissionconsiders necessary to enable the Commission to carry out itsduties under this section, except the provision of intelligence informationto the Commission shall be made with due regard for theprotection from unauthorized disclosure of classified informationrelating to sensitive intelligence sources and methods or other exceptionallysensitive matters, under procedures approved by the Directorof Central Intelligence.(3) Security. The Office of Senate Security shall—(A) provide classified storage and meeting and hearing spaces,when necessary, for the Commission; and(B) assist members and staff of the Commission in obtaining securityclearances.(4) Security clearances. All members of the Commission and appropriatestaff shall be sworn and hold appropriate security clearances.(e) Commission personnel matters.(1) Compensation of members. Members of the United States-China Economic and Security Review Commission shall be compensatedin the same manner provided for the compensation ofmembers of the Trade Deficit Review Commission under section127(g)(1) and section 127(g)(6) of the Trade Deficit Review CommissionAct [19 U.S.C. 2213 note].(2) Travel expenses. Travel expenses of the United States-ChinaEconomic and Security Review Commission shall be allowed in thesame manner provided for the allowance of the travel expenses ofthe Trade Deficit Review Commission under section 127(g)(2) of theTrade Deficit Review Commission Act [19 U.S.C § 2213 note].(3) Staff. An executive director and other additional personnel forthe United States-China Economic and Security Review Commissionshall be appointed, compensated, and terminated in the samemanner provided for the appointment, compensation, and terminationof the executive director and other personnel of the TradeDeficit Review Commission under section 127(g)(3) and section127(g)(6) of the Trade Deficit Review Commission Act [19 U.S.C.§ 2213 note]. The executive director and any personnel who are employeesof the United States-China Economic and Security ReviewCommission shall be employees under section 2105 of title 5,United States Code, for purposes of chapters 63, 81, 83, 84, 85, 87,89, and 90 of that title [language of 2001 amendment, Sec. 645].(4) Detail of government employees. Federal Government employeesmay be detailed to the United States-China Economic and SecurityReview Commission in the same manner provided for the detailof Federal Government employees to the Trade Deficit ReviewCommission under section 127(g)(4) of the Trade Deficit ReviewCommission Act [19 U.S.C. § 2213 note].(5) Foreign travel for official purposes. Foreign travel for officialpurposes by members and staff of the Commission may be authorizedby either the Chairman or the Vice Chairman of the Commission.(6) Procurement of temporary and intermittent services. TheChairman of the United States-China Economic and Security Re-VerDate Nov 24 2008 13:46 Nov 10, 2011 Jkt 067464 PO 00000 Frm 00383 Fmt 6601 Sfmt 6601 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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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 331 and 332: 323mation Office. Day-to-day superv
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Page 383 and 384: 375ecutive Schedule under section 5
Page 395 and 396: APPENDIX IIIPUBLIC HEARINGS OF THE
Page 399 and 400: APPENDIX IIIALIST OF WITNESSES TEST
Page 401 and 402: 393Alphabetical Listing of Panelist
Page 405 and 406: 397In TaiwanU.S. Government• Amer
Page 407 and 408: APPENDIX VLIST OF RESEARCH MATERIAL
Page 409 and 410: 401The National Security Implicatio
Page 411 and 412: APPENDIX VIACRONYMS AND ABBREVIATIO
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