ANNUAL REPORT

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222 Table 1: Significant PLA Bilateral and Multilateral Military Exercises, November 2015–October 2016 * Date Exercise Name or Type (Location) Other Participants PLA Weapons Systems and Units Involved (if reported) Details 11/12/15– 11/30/15 Falcon Strike-2015 (Thailand) Thailand J–11A fighters 264 This exercise was the first ever between the two air forces. According to a Chinese Defense Ministry spokesperson, the purpose of the exercise was to enhance mutual understanding, deepen bilateral cooperation, and increase mutual trust. 265 12/31/15– 1/1/16 Naval Exercise (East China Sea) Pakistan Two missile frigates The first naval exercise between the two countries in the East China Sea included drills on ship formation movement, search and rescue, and live-fire drills striking targets in the air and at sea. The exercise also had antipiracy and antisubmarine components. 266 2/7/16 China-India 2016 Cooperation (India) India 30 border troops The first combined exercise between Chinese and Indian border troops was focused on HA/DR. It was designed to preserve peace and stability in the border region and promote trust between the two militaries. 267 3/23/16– 3/24/16 Joint Evacuation- 2016 (Nanjing, China) Great Britain Not reported The two countries conducted their first simulated tabletop noncombatant evacuation operation together, which simulated evacuating people from an unnamed third country in a civil war beset by terrorism, and each shared their respective policies and experiences in such operations. 268 dkrause on DSKHT7XVN1PROD with USCC * Not noted in this table is the PLA’s involvement in military competitions with foreign armed forces, which serve as another venue for the PLA to engage with other countries’ militaries and gain experience in logistics and deployment of forces in unfamiliar environments. Rather than focusing on tactics and involving specific scenarios like most military exercises, competitions typically only test certain combat skills and weapons systems. From July 30 to August 13, 2016, the PLA Army, Navy, and Air Force attended the International Army Games 2016 in Russia. Joining over 17 countries, the PLA delegation reportedly included more than 1,000 officers and soldiers participating in 21 competitions—a larger footprint than previous years. China Military Online, ‘‘International Army Games 2016 Wraps Up in Russia,’’ August 15, 2016; China Military Online, ‘‘China Sends Troops to Participate in International Army Games 2016,’’ July 18, 2016. VerDate Sep 11 2014 12:16 Nov 02, 2016 Jkt 020587 PO 00000 Frm 00132 Fmt 6601 Sfmt 6601 G:\GSDD\USCC\2016\FINAL\06_C1_C2_M.XXX 06_C1_C2_M
223 Table 1: Significant PLA Bilateral and Multilateral Military Exercises, November 2015–October 2016—Continued Date Exercise Name or Type (Location) Other Participants PLA Weapons Systems and Units Involved (if reported) Details 4/9/16– 4/30/16 Shaheed V (Pakistan) Pakistan JH–7A, J–8II, and J–11 fighters, and KJ–200 early warning aircraft This annual exercise consisted of ground attack and air-to-air combat and simulated fighting against extremists in China’s Xinjiang Uyghur Autonomous Region, Central Asia, and the northern tribal areas of Pakistan. 269 4/12/16– 4/16/16 Komodo-2016 (Indonesia) United States (and 34 other countries) Guided-missile frigate and salvage lifting ship This exercise (now in its second iteration) consisted of drills on maritime peacekeeping and HA/DR, live-fire drills directed at surface targets, and early warning drills. 270 5/2/16– 5/12/16 ASEAN Defense Minister’s Meeting Plus (ADMM- Plus) Maritime Security and Counterterrorism Exercise (Singapore and Brunei) ASEAN,* the United States (and seven other countries) Guided-missile destroyer This semiannual exercise was larger and more complex than any previous ADMM-Plus exercise. Maritime security and counterterrorism drills included helicopter operations, divisional tactics, and land storming in a counterterrorism scenario. 271 5/21/16– 6/10/16 Blue Strike-2016 (Thailand) Thailand Warship, nine amphibious armored vehicles, air defense and antitank missile launchers, naval aviation troops, and 266 marines In the third major exercise between the two militaries, China sent a warship and naval aviation troops to the exercise for the first time. Marines from both sides held seminars on antipiracy, disaster relief, and air defense operations. The exercise also included training at sea and on land, including counterterrorism, antichemical warfare, and live-fire drills. 272 5/23/16– 5/28/16 Aerospace Security- 2016 (Russia) Russia Not reported The two countries conducted their first ‘‘computer-assisted antimissile defense exercise.’’ dkrause on DSKHT7XVN1PROD with USCC * All ASEAN members sent troops to the exercise except Burma and Laos. China Military Online, ‘‘Destroyer Lanzhou Leaves Singapore after ADMM-Plus Exercise,’’ May 13, 2016. VerDate Sep 11 2014 12:16 Nov 02, 2016 Jkt 020587 PO 00000 Frm 00133 Fmt 6601 Sfmt 6601 G:\GSDD\USCC\2016\FINAL\06_C1_C2_M.XXX 06_C1_C2_M
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USCC 2016 ANNUAL REPORT
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1 2016 REPORT TO CONGRESS of the U.
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U.S.-CHINA ECONOMIC AND SECURITY RE
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• The safety of food, drug, and o
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CONTENTS Page TRANSMITTAL LETTER TO
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IX Page Recommendations ...........
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2 ernment’s “going out” strat
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4 economically and politically stra
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6 wage rates are determined by free
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8 while allowing a greater role for
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10 began construction on its first
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12 from—the People’s Republic o
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14 cluding cyber and human intellig
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16 exporter of manufactured goods,
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18 Pakistan’s economic and securi
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20 Beijing appears to remain skepti
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22 trends in Hong Kong with regard
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24 UNSCR 2270. However, in May and
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26 Korea, designating Dandong Hongx
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28 tional order—both before and a
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30 to examine China’s economic an
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32 debt, and jeopardizing long-term
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Introduction CHAPTER 1 U.S.-CHINA E
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37 Statistics with Chinese Characte
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39 up from 52.3 percent in the seco
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41 Early signs suggest President Xi
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43 Figure 4: China’s Total Debt b
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45 reserves to defend the RMB. 75 I
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47 The pace of U.S. export growth t
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49 The United States continued to r
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51 commitments, China has only take
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53 Table 3: Top Five Business Chall
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55 U.S. Tech Firms and Their Chines
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57 ment of Justice’s May 2014 ind
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59 Internet Censorship As a result
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61 on the future of U.S.-China rela
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63 Chapter 1, Section 2, “State-O
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65 Table 5: Failed Chinese Bids for
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67 • Accelerating Bilateral Inves
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69 cess capacity, which will share
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71 United States Challenges Chinese
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73 rulings of the DSB [Dispute Sett
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75 Conclusions • In 2015, the U.S
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77 Addendum I: WTO Cases Recent and
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79 ENDNOTES FOR SECTION 1 1. Lucy H
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81 55. Gabriel Wildau and Don Weinl
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83 119. American Chamber of Commerc
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85 and Espionage Operations, oral t
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87 217. Kane Wu, “Chinese Compani
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89 271. Office of the U.S. Trade Re
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dkrause on DSKHT7XVN1PROD with USCC
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93 Lardy, senior fellow at the Pete
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99 pany competitiveness and stimula
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105 Table 2: Select Chinese Overcap
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107 levels. 135 The situation is on
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109 Figure 5: China’s Monthly Cru
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111 Figure 6: U.S. Steel Industry Q
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123 Addendum I: Section 15 of China
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125 Addendum II: AD and CVD Investi
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141 dkrause on DSKHT7XVN1PROD with
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143 lifetime cost of bringing the e
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145 gets achieved). 57 Using satell
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147 cost of compliance,’’ and p
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151 boost the efficiency of China
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Table 1: 157 Chinese Attempted and
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Table 1: 159 Chinese Attempted and
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163 Figure 4: China’s Total Debt-
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Page 191 and 192: 177 Addendum I: Key Targets in Chin
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Page 209 and 210: 195 The ultimate impact of the ruli
Page 211 and 212: 197 Environmental Impact of China
Page 215 and 216: 201 China’s Maritime Disputes in
Page 217 and 218: 203 Reform and Reorganization of th
Page 221 and 222: 207 • PLA Army Headquarters: Chin
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Page 247 and 248: 233 Select U.S.-China Security-Rela
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275 conflict Chinese expeditionary
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279 RECOMMENDATIONS Developments in
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SECTION 3: CHINESE INTELLIGENCE SER
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291 Strategic Support Force In Dece
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293 of advanced intelligence, surve
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295 tives, and sexual entrapment. 4
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297 information to a Chinese intell
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299 such as power transmission grid
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301 for transferring trade secrets
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303 nal U.S. discussions of issues
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305 ENDNOTES FOR SECTION 3 1. U.S.-
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307 29. U.S. Department of Justice,
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309 63. U.S. Department of Justice,
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311 106. Eric Holder, “Attorney G
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314 sure its own ambitions in South
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316 Chinese foreign direct investme
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318 • Pakistan: In 2015, China an
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320 India “Acts East” and Puts
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322 Counter Terrorism and Religious
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324 tivities of the Dalai Lama and
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326 incursions across the border fr
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328 conducive to sea lane protectio
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330 Karachi Port, that could eventu
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332 India and OBOR India has not en
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334 China’s Arms Sales to Pakista
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336 For China, the goals of CPEC ar
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338 according to Mr. Small, “The
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340 side the Treaty on the Non-Prol
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342 Facets of U.S.-India Defense Re
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344 of China, but has advocated for
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346 • Recent U.S.-China tensions
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348 24. Debasish Roy Chowdhury, “
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350 71. Jeff Smith, Cold Peace: Chi
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352 127. U.S.-China Economic and Se
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354 2016, 86; Andrew Small, The Chi
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358 Taiwan’s Economic Challenges
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364 agreements. 57 Since then, many
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366 $67.2 billion, comprising 25.4
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368 Foreign Direct Investment China
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370 is leading the initiative, have
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374 Taiwan and the 11-Dash Line The
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384 trade-based partner to an innov
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390 • China’s military moderniz
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410 Hong Kong’s Political Gossip
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414 moving up one place compared to
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418 Chinese Censorship of Prize-Win
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420 Hong Kong and the ‘‘Panama
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424 Table 1: Select PLA Hong Kong G
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428 sitive periods in Hong Kong, le
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436 150. Commission meeting with Ta
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442 Korea. The resolution also bans
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444 increase pressure on Pyongyang.
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446 pand China-South Korea ties. 54
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448 Technical Details of THAAD The
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456 Korea runs perpetual merchandis
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460 pressure is more likely to brin
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462 ty for sanctions violations, co
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479 sailors would be stationed in J
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485 Table 1: U.S. Goods Trade with
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489 basis for President Obama’s c
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APPENDIX II BACKGROUND OF COMMISSIO
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APPENDIX III PUBLIC HEARINGS OF THE
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537 June 9, 2016: Public Hearing on
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APPENDIX IIIA LIST OF WITNESSES TES
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541 Alphabetical Listing of Panelis
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APPENDIX IV LIST OF RESEARCH MATERI
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547 China’s Military Agreements w
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APPENDIX V ACRONYMS AND ABBREVIATIO
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551 OPM PBOC PLA PMI PPI PPP PRC QD
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553 2016 COMMISSION STAFF MICHAEL R
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