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354 2016, 86; Andrew Small, The China-Pakistan Axis: Asia’s New Geopolitics, Oxford University Press, 2015, 81. 174. Andrew Small, The China-Pakistan Axis: Asia’s New Geopolitics, Oxford University Press, 2015, 68, 81, 86, 88, 89; Jacob Zenn, “Insurgency in Xinjiang Complicates Chinese-Pakistani Relations,” Jamestown Foundation, April 20, 2012. 175. U.S.-China Economic and Security Review Commission, Hearing on China-South Asia Relations, written testimony of Andrew Small, March 10, 2016. 176. Andrew Small, The China-Pakistan Axis: Asia’s New Geopolitics, Oxford University Press, 2015, 88. 177. Andrew Small, The China-Pakistan Axis: Asia’s New Geopolitics, Oxford University Press, 2015, 89–91. 178. Various interlocutors, meeting with Commission, New Delhi, India, June 29, 2016. 179. Zhao Huasheng, “What Is behind China’s Growing Attention to Afghanistan?” Carnegie Endowment for International Peace, March 8, 2015. 180. U.S.-China Economic and Security Review Commission, Hearing on China and Central Asia, written testimony of Andrew Small, March 18, 2015. 181. Zhao Huasheng, “What Is behind China’s Growing Attention to Afghanistan?” Carnegie Endowment for International Peace, March 8, 2015. 182. U.S. Department of State Office of the Spokesperson, Joint Press Release of the Quadrilateral Coordination Group on Afghan Peace and Reconciliation, January 11, 2016. 183. Jessica Donati and Ehsanullah Amiri, “China Offers Afghanistan Army Expanded Military Aid,” Wall Street Journal, March 9, 2016. 184. Ibrahim Nasar and Jafar Haand, “Afghanistan Welcomes Chinese Anti-Terror Proposal,” Voice of America, March 1, 2016. 185. Andrew Small, The China-Pakistan Axis: Asia’s New Geopolitics, Oxford University Press, 2015, 162. 186. Dinshaw Mistry, “Aligning Unevenly: India and the United States,” East-West Center, 2016, 2, 7. 187. Dinshaw Mistry, “Aligning Unevenly: India and the United States,” East-West Center, 2016, 4. 188. Aaron Mehta and Joe Gould, “Modi Visit Underlines Changed India-US Relationship,” Defense News, June 5, 2016. 189. White House, U.S.-India Joint Strategic Vision for the Asia-Pacific and Indian Ocean Region, January 25, 2015. 190. White House, Joint Statement: The United States and India: Enduring Global Partners in the 21st Century, June 7, 2016. 191. White House, Joint Statement: The United States and India: Enduring Global Partners in the 21st Century, June 7, 2016. 192. Harvard University Center for International Development, “Atlas of Economic Complexity.” http://atlas.cid.harvard.edu/. 193. Senate Foreign Relations Committee, Hearing on U.S.-India Relations: Balancing Progress and Managing Expectations, written testimony of Nisha Desai Biswal, May 24, 2016. 194. Shailaja Neelakantan, “GDP Jumps 7.9% in January-March 2016, Beats Analysts’ Estimates,” Times of India, May 31, 2016. 195. Senate Foreign Relations Committee, Hearing on U.S.-India Relations: Balancing Progress and Managing Expectations, written testimony of Sadanand Dhume, May 24, 2016; Senate Foreign Relations Committee, Hearing on U.S.-India Relations: Balancing Progress and Managing Expectations, written testimony of Alyssa Ayres, May 24, 2016. 196. White House, Joint Statement: The United States and India: Enduring Global Partners in the 21st Century, June 7, 2016. 197. White House, Joint Statement: The United States and India: Enduring Global Partners in the 21st Century, June 7, 2016. 198. Ankit Panda, “U.S.-India Patrols in the South China Sea? Maybe Not Just Yet,” Diplomat (Japan), February 11, 2016; James Lamont, “India: A Tiger Awakes to Challenge the Chinese Military,” Financial Times, September 12, 2011. 199. Harry Harris, “Let’s Be Ambitious Together” (Raisina Dialogue, New Delhi, India, March 2, 2016); Ellen Barry, “U.S. Proposes Reviving Naval Coalition to Balance China’s Expansion,” New York Times, March 2, 2016. 200. Ellen Barry, “U.S. Proposes Reviving Naval Coalition to Balance China’s Expansion,” New York Times, March 2, 2016. 201. U.S. Department of State, Inaugural U.S.-India-Japan Trilateral Ministerial, September 29, 2015.
355 202. Aaron Mehta and Joe Gould, “Modi Visit Underlines Changed India-US Relationship,” Defense News, June 5, 2016. 203. U.S. Department of Defense, Framework for the U.S.-India Defense Relationship, June 3, 2015. 204. White House, Joint Statement: The United States and India: Enduring Global Partners in the 21st Century, June 7, 2016. 205. S. Amer Latif and Karl F. Inderfurth, “U.S.-India Military Engagement: Steady as They Go,” Center for Strategic and International Studies, December 2012, viii. 206. Subrahmanyam Jaishankar, “U.S.-India Relations” (Carnegie Endowment for International Peace, Washington, DC, January 29, 2014). 207. Indian Navy, Exercise Malabar – 2016. http://www.indiannavy.nic.in/content/ exercise-malabar-2016; Abhijit Singh, “Malabar 2015: Strategic Power Play in the Indian Ocean,” Diplomat (Japan), October 28, 2015. 208. U.S. Department of Defense, Report to Congress on U.S.-India Security Cooperation, November 2011, 3–4. 209. U.S. Department of Defense, Joint Press Conference by Secretary Carter and Minister Parrikar in the Pentagon Briefing Room, August 29, 2016. 210. Vivek Raghuvanshi, “India, US Reach Agreement on Logistics, Boost Defense Ties,” Defense News, April 12, 2016. 211. Ankit Panda, “LSA, CISMOA, BECA and the Future of the US-India Defense Partnership,” Diplomat (Japan), April 7, 2016. 212. Mugdha Variyar, “For the First Time, India Buys More Arms from the U.S. than Russia,” International Business Times, August 13, 2014. 213. White House, Joint Statement: The United States and India: Enduring Global Partners in the 21st Century, June 7, 2016; Office of the Undersecretary of Defense for Acquisition, Technology, and Logistics, U.S.-India Defense Technology and Trade Initiative (DTTI). http://www.acq.osd.mil/ic/DTTI.html. 214. Stockholm International Peace Research Institute, “Arms Transfers Database.” http://armstrade.sipri.org/armstrade/page/trade_register.php. 215. Ankit Panda, “LSA, CISMOA, BECA and the Future of the US-India Defense Partnership,” Diplomat (Japan), April 7, 2016; Teresita C. Schaffer, “U.S. Sale of F–16 Jets to Pakistan Riles India,” Brookings Institution, March 30, 2016. 216. U.S.-China Economic and Security Review Commission, Hearing on China-South Asia Relations, written testimony of Tanvi Madan, March 10, 2016. 217. Francesca Chambers, “ ‘We Are Not in Favor of Independence’: President Barack Obama Reiterates U.S. Position That Tibet Is Part of China,” Daily Mail (UK), November 12, 2014. 218. Susan V. Lawrence, “The Tibetan Policy Act of 2002: Background and Implementation,” Congressional Research Service, July 9, 2015, 1. 219. U.S. Department of State, Under Secretary Sewall at the ‘Lockdown in Tibet’ Event, June 15, 2015. 220. Suhasini Haidar and Varghese K. George, “India Calls U.S. Envoy, Protests F–16 Sale to Pakistan,” Hindu (India), February 14, 2016; Smriti Kak Ramachandran, “India Raises Arms Sale to Pakistan with U.S.” Hindu (India), June 4, 2015.
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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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299 such as power transmission grid
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301 for transferring trade secrets
Page 317 and 318: 303 nal U.S. discussions of issues
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Page 321 and 322: 307 29. U.S. Department of Justice,
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Page 328 and 329: 314 sure its own ambitions in South
Page 330 and 331: 316 Chinese foreign direct investme
Page 332 and 333: 318 • Pakistan: In 2015, China an
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Page 358 and 359: 344 of China, but has advocated for
Page 360 and 361: 346 • Recent U.S.-China tensions
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Page 372 and 373: 358 Taiwan’s Economic Challenges
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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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