ANNUAL REPORT

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350 71. Jeff Smith, Cold Peace: China-India Rivalry in the Twenty-First Century, Lexington Books, 2014, 93. 72. BBC, “China Urged to Release Panchen Lama after 20 Years,” May 17, 2015. 73. Jeff Smith, Cold Peace: China-India Rivalry in the Twenty-First Century, Lexington Books, 2014, 103; Edward Wong, “China Creates Specter of Dueling Dalai Lamas,” New York Times, June 6, 2009. 74. His Holiness the 14th Dalai Lama of Tibet, “Statement of His Holiness the Fourteenth Dalai Lama, Tenzin Gyatso, on the Issue of His Reincarnation,” September 24, 2011. 75. BBC, “Dalai Lama Concedes He May Be the Last,” December 17, 2014. 76. Jeff Smith, Cold Peace: China-India Rivalry in the Twenty-First Century, Lexington Books, 2014, 101. 77. Jayadeva Renade, “The Dalai Lama and India-China Relations,” Centre for Air Power Studies, December 1, 2009, 4. 78. Jeff Smith, Cold Peace: China-India Rivalry in the Twenty-First Century, Lexington Books, 2014, 106–109. 79. Ma Haoliang, “The Chain of Belonging of the 18 Group Armies Has Been Confirmed,” Ta Kung Pao, February 23, 2016. Staff translation; Guo Yuandan, Ren Zhong, and Lan Yage, “Experts: The Five PLA Theater Commands Have Clear Goals, with the Southeast Coastal Front Being the Key Link of Future Military Operations,” Global Times (China), February 2, 2016. Staff translation. 80. Christopher Colley, Instructor, School of International Studies, Renmin University, meeting with Commission, Beijing, China, June 24, 2016. 81. Sudha Ramachandran, “China and India’s Border Infrastructure Race,” Jamestown Foundation, September 13, 2016. 82. Daniel S. Markey, “Armed Confrontation between China and India,” Council on Foreign Relations, November 2015, 1; Jeff Smith, Cold Peace: China-India Rivalry in the Twenty-First Century, Lexington Books, 2014, 65. 83. Srinath Raghavan, “The Fifty-Year Crisis: India and China Since 1962.” http://www.india-seminar.com/2013/641/641_srinath_raghavan.htm. 84. Jeff Smith, Cold Peace: Sino-Indian Rivalry in the Twenty-First Century, Lexington Books, 2014, 22, 28, 39–51. 85. BBC, “Why Border Standoffs between India and China Are Increasing,” September 26, 2014. 86. Jeff Smith, Cold Peace: China-India Rivalry in the Twenty-First Century, Lexington Books, 2014, 22–28. 87. India’s Ministry of External Affairs, 18th Round of Talks between the Special Representatives of India and China on the Boundary Question, March 24, 2015; Jeff Smith, Cold Peace: China-India Rivalry in the Twenty-First Century, Lexington Books, 2014, 29–30. 88. Katherine Richards, “China-India: An Analysis of the Himalayan Territorial Dispute,” Australian Defence College Centre for Defence and Strategic Studies, February 2015, 11–14; Jeff Smith, Cold Peace: China-India Rivalry in the Twenty-First Century, Lexington Books, 2014, 61. 89. Jeff Smith, Cold Peace: China-India Rivalry in the Twenty-First Century, Lexington Books, 2014, 61. 90. Jeff Smith, Cold Peace: China-India Rivalry in the Twenty-First Century, Lexington Books, 2014, 30–31, 41–42. 91. UN Peacemaker, “Agreement between the Government of the Republic of India and the Government of the People’s Republic of China on Confidence-Building Measures in the Military Field along the Line of Actual Control in the India-China Border Areas,” November 29, 1996; Press Information Bureau, Prime Minister’s Office, Government of India, Border Defence Cooperation Agreement between India and China, October 23, 2013. 92. Katherine Richards, “China-India: An Analysis of the Himalayan Territorial Dispute,” Australian Defence College Centre for Defence and Strategic Studies, February 2015, 15. 93. Rajat Pandit, “Army Chief Reviews Mountain Strike Corps,” Times of India, May 8, 2014; Jeff Smith, Cold Peace: China-India Rivalry in the Twenty-First Century, Lexington Books, 2014, 41–42; Economist, “India as a Great Power: Know Your Strength,” March 30, 2013; and Deepak K. Upreti, “LAC Airbases to Be Upgraded,” Deccan Herald (India), March 11, 2012. 94. Katherine Richards, “China-India: An Analysis of the Himalayan Territorial Dispute,” Australian Defence College Centre for Defence and Strategic Studies, February 2015, 14–16. 95. Brahma Chellaney, Water: Asia’s New Battleground, Georgetown University Press, 2011, 98.
351 96. U.S.-China Economic and Security Review Commission, Hearing on China’s Global Quest for Resources and Implications for the United States, written testimony of Brahma Chellaney, January 26, 2012. 97. Nilanthi Samaranayake, Satu Limaye, and Joel Wuthnow, “Water Resource Competition in the Brahmaputra River Basin: China, India, and Bangladesh,” CNA, May 2016, 16, 26. 98. Nilanthi Samaranayake, Satu Limaye, and Joel Wuthnow, “Water Resource Competition in the Brahmaputra River Basin: China, India, and Bangladesh,” CNA, May 2016, 16, 28. 99. U.S.-China Economic and Security Review Commission, Hearing on China-South Asia Relations, written testimony of David Brewster, March 10, 2016; Ge Dongsheng, Guojia Anquan Zhanlue Lun (Discussion of National Security Strategy), Military Science Publishing, 2006, 222–225. 100. China’s Information Office of the State Council, China’s Military Strategy, May 2015. 101. U.S.-China Economic and Security Review Commission, Hearing on China-South Asia Relations, written testimony of David Brewster, March 10, 2016. 102. U.S.-China Economic and Security Review Commission, 2015 Annual Report to Congress, November 2015, 250–251. 103. Sam LaGrone, “U.S. AFRICOM Commander Confirms Chinese Logistics Base in Djibouti,” USNI News, November 25, 2015. 104. Various interlocutors, meetings with Commission, Beijing, China, and New Delhi, India, June 24, 2016 and June 30, 2016. 105. Various interlocutors, meetings with Commission, Beijing, China, and New Delhi and Mumbai, India, June 24, and June 29–July 1, 2016. 106. U.S.-China Economic and Security Review Commission, Hearing on China-South Asia Relations, written testimony of David Brewster, March 10, 2016. 107. Richard Rossow, “A New Vision for U.S.-India Cooperation in Asia,” Center for Strategic and International Studies, Asia Maritime Transparency Initiative, February 4, 2015. 108. U.S.-China Economic and Security Review Commission, Hearing on China-South Asia Relations, written testimony of David Brewster, March 10, 2016. 109. Abhijit Singh, “India’s Maritime Stakes in the South Asian Littoral,” National Bureau of Asian Research, May 2016; U.S.-China Economic and Security Review Commission, Hearing on China-South Asia Relations, written testimony of David Brewster, March 10, 2016. 110. U.S.-China Economic and Security Review Commission, China Extends its Combat Reach to the Indian Ocean, March 14, 2014, 6. 111. Abhijit Singh, “India’s Maritime Stakes in the South Asian Littoral,” National Bureau of Asian Research, May 2016. 112. U.S.-China Economic and Security Review Commission, Hearing on China-South Asia Relations, written testimony of David Brewster, March 10, 2016. 113. U.S.-China Economic and Security Review Commission, Hearing on China-South Asia Relations, written testimony of Andrew Small, March 10, 2016. 114. David Brewster, “China and India at Sea: A Contest of Status and Legitimacy in the Indian Ocean,” Australia India Institute, September 2015, 9. 115. U.S.-China Economic and Security Review Commission, Hearing on China-South Asia Relations, written testimony of David Brewster, March 10, 2016. 116. U.S.-China Economic and Security Review Commission, Hearing on China-South Asia Relations, written testimony of David Brewster, March 10, 2016. 117. Business representatives, meeting with Commission, Mumbai, India, July 1, 2016; Tom Miller, “A Sino-Indian Powerhouse?” Gavekal Dragonomics, May 8, 2015. 118. Economist, “Arrive Full, Leave Empty,” February 27, 2016. 119. U.S.-China Economic and Security Review Commission, Hearing on China-South Asia Relations, written testimony of Tanvi Madan, March 10, 2016. 120. Harvard University Center for International Development, “Atlas of Economic Complexity.” http://atlas.cid.harvard.edu/. 121. Economist, “Arrive Full, Leave Empty,” February 27, 2016. 122. Business representatives, meeting with Commission, Mumbai, India, July 1, 2016; Think tank scholars, meeting with Commission, Mumbai, India, July 1, 2016. 123. Times of India, “Curbs Stay – Govt Rules out Total Ban on Imports from China,” April 26, 2016. 124. Tom Miller, “A Sino-Indian Powerhouse?” Gavekal Dragonomics, May 8, 2015. 125. Victor Mallet, “China-India Border Standoff Overshadows Xi Jinping’s Deals,” Financial Times, September 18, 2014. 126. NDTV.com (India), “India-China Border Face-off Worsens as New Delhi Welcomes President Xi,” September 18, 2014.
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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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173 weapons, opens the U.S. militar
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175 ests, and allow for greater vol
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177 Addendum I: Key Targets in Chin
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179 Addendum I: Key Targets in Chin
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195 The ultimate impact of the ruli
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197 Environmental Impact of China
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201 China’s Maritime Disputes in
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203 Reform and Reorganization of th
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207 • PLA Army Headquarters: Chin
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211 Figure 5: Type 072A Tank Landin
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215 Figure 7: JL-2 Missile Range Co
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221 Space-Tracking Facility in Arge
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223 Table 1: Significant PLA Bilate
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227 Nigeria will be the first expor
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231 tional annexes to the 2014 Noti
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233 Select U.S.-China Security-Rela
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257 China’s Core Interests—Cont
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259 guerrillas in Colombia and held
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271 stan. 109 In 2014, the PLA Air
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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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Page 317 and 318: 303 nal U.S. discussions of issues
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Page 330 and 331: 316 Chinese foreign direct investme
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Page 360 and 361: 346 • Recent U.S.-China tensions
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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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