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dkrause on DSKHT7XVN1PROD with USCC 392 ENDNOTES FOR SECTION 2 1. Taiwan official, meeting with Commission, Taipei, Taiwan, June 22, 2016. 2. Bonnie S. Glaser, ‘‘Prospects for Cross-Strait Relations as Tsai Ing-wen Assumes the Presidency in Taiwan,’’ Center for Strategic and International Studies, April 20, 2016, 7. 3. Taiwan’s Central Election Commission, Presidential and Vice Presidential Election, January 16, 2016. http://vote2016.cec.gov.tw/en/IDX/indexP1.html. 4. Taiwan’s Central Election Commission, Presidential and Vice Presidential Election, January 16, 2016. http://vote2016.cec.gov.tw/en/IDX/indexP1.html. 5. Taiwan Brain Trust, ‘‘TBT Survey: Assessment of Taiwan Society, Economics, Cross-Strait Relationship, and 2016 Election,’’ September 26, 2015; Tsai Ingwen, ‘‘Taiwan Faces the Future’’ (Washington, DC, June 3, 2015). 6. Lin Chien-fu, Professor, National Taiwan University, Department of Economics, meeting with Commission, Taipei, Taiwan, June 22, 2016. 7. Taiwan’s Directorate-General of Budget, Accounting and Statistics via CEIC database. 8. Taiwan’s Ministry of Interior via CEIC database. 9. Sean O’Connor and Ethan Meick, ‘‘Taiwan Opposition Party Wins Presidency and Legislative Majority in Historic Elections,’’ U.S.-China Economic and Security Review Commission, January 28, 2016; Sarah Mishkin and David Pilling, ‘‘Taiwan: Time to Change Gear,’’ Financial Times, April 9, 2013. 10. Taiwan official, meeting with Commission, Taipei, Taiwan, June 21, 2016. 11. Taiwan official, meeting with Commission, Taipei, Taiwan, June 21, 2016; Tsai Ing-wen, ‘‘Inaugural Address of ROC 14th-term President Tsai Ing-wen’’ (Taipei, Taiwan, May 20, 2016). 12. Scholars, Chung-Hua Institute for Economic Research, meeting with Commission, Taipei, Taiwan, June 21, 2016. 13. Business representative, meeting with Commission, Taipei, Taiwan, June 23, 2016; Scholar, meeting with Commission, Taipei, Taiwan, June 22, 2016. 14. Eric Huang, ‘‘Realistic Energy Policies for Taiwan,’’ Diplomat (Japan), August 5, 2015. 15. Taiwan official, meeting with Commission, Taipei, Taiwan, June 21, 2016; Aries Poon, Fanny Liu, and Jenny W. Hsu, ‘‘Taiwan’s Move from Nuclear May Increase Power Costs,’’ Wall Street Journal, April 28, 2014. 16. Austin Ramzy, ‘‘Amid Protests, Taiwan to Halt Work on Nuclear Plant,’’ New York Times, April 28, 2014. 17. Scholars, Chung-Hua Institute for Economic Research, meeting with Commission, Taipei, Taiwan, June 21, 2016; Scholar, meeting with Commission, Taipei, Taiwan, June 22, 2016. 18. Scholar, meeting with Commission, Taipei, Taiwan, June 22, 2016. 19. Chris Zappone, ‘‘Hong Kong Pro-Democracy Protests Create Waves in Taiwan,’’ Sydney Morning Herald, October 9, 2014; Cindy Sui, ‘‘Why Taiwan Is Watching Hong Kong Protests,’’ BBC, September 30, 2014. 20. J. Michael Cole, Senior Non-Resident Fellow, University of Nottingham, China Policy Institute, meeting with Commission, Taipei, Taiwan, June 22, 2016. 21. Central News Agency (Taiwan), ‘‘Maintaining Status Quo Means Keeping Cross-Strait Peace: DPP Chair,’’ May 9, 2015; Tsai Ing-wen, ‘‘Taiwan Faces the Future’’ (Washington, DC, June 3, 2015). 22. Tsai Ing-wen, ‘‘Taiwan Faces the Future’’ (Washington, DC, June 3, 2015). 23. Tsai Ing-wen, ‘‘Taiwan Faces the Future’’ (Washington, DC, June 3, 2015). 24. Alan D. Romberg, ‘‘The ‘1992 Consensus’—Adapting to the Future?,’’ Hoover Institution, March 2016, 2, 5. 25. Zou Jingwen, ‘‘Tsai Ing-wen: 1992 Is a Historical Fact, Pushing Forward Cross-Strait Relations,’’ Liberty Times (Taiwan), January 21, 2016. Staff translation. 26. Zou Jingwen, ‘‘Tsai Ing-wen: 1992 Is a Historical Fact, Pushing Forward Cross-Strait Relations,’’ Liberty Times (Taiwan), January 21, 2016. Staff translation. 27. Tsai Ing-wen, ‘‘Inaugural Address of ROC 14th-term President Tsai Ing-wen’’ (Taipei, Taiwan, May 20, 2016). 28. Richard C. Bush, ‘‘Tsai’s Inauguration in Taiwan: It Could Have Been Worse,’’ Brookings Institution, May 23, 2016. 29. China’s Taiwan Affairs Office, Taiwan Affairs Office Press Conference Transcript, January 27, 2016. Staff translation. 30. China’s Taiwan Affairs Office, Taiwan Affairs Office Press Conference Transcript, January 27, 2016. Staff translation. 31. Wang Yi, ‘‘Statesman’s Forum: Wang Yi, Minister of Foreign Affairs, PRC’’ (Washington, DC, February 25, 2016). VerDate Sep 11 2014 14:49 Nov 01, 2016 Jkt 020587 PO 00000 Frm 00037 Fmt 6601 Sfmt 6621 G:\GSDD\USCC\2016\FINAL\09_C3_M.XXX 09_C3_M
dkrause on DSKHT7XVN1PROD with USCC 393 32. Wang Yi, ‘‘Statesman’s Forum: Wang Yi, Minister of Foreign Affairs, PRC’’ (Washington, DC, February 25, 2016). 33. J. Michael Cole, ‘‘The Great Cross-Strait Double-Think Act,’’ Thinking Taiwan, March 4, 2016. 34. Bonnie S. Glaser, ‘‘Prospects for Cross-Strait Relations as Tsai Ing-wen Assumes the Presidency in Taiwan,’’ Center for Strategic and International Studies, April 20, 2016, 7. 35. Austin Ramzy, ‘‘China Resumes Diplomatic Relations with Gambia, Shutting Out Taiwan,’’ New York Times, March 18, 2016. 36. China Post (Taiwan), ‘‘President-Elect Ma Calls for ‘Diplomatic Truce’ with China,’’ May 11, 2008; Taiwan’s Office of the President, Viable Diplomacy. Staff translation. 37. Richard C. Bush, ‘‘China’s Gambia Gambit and What It Means for Taiwan,’’ Brookings Institution, March 22, 2016. 38. Taiwan official, meeting with Commission, Taipei, Taiwan, June 22, 2016. 39. Wang Shu-fen and Frances Huang, ‘‘Chinese Passenger Volume Drops at Most Taiwan Airports in July,’’ Central News Agency (Taiwan), August 19, 2016. 40. Sun Hsin Hsuan, ‘‘Tourism Workers March for Help,’’ China Post (Taiwan), September 13, 2016. 41. Taiwan’s Tourism Bureau, ‘‘Visitor Arrivals by Residence, 2008.’’ http:// admin.taiwan.net.tw/upload/statistic/200812/table02_2008.htm; Taiwan’s Tourism Bureau, ‘‘Visitor Arrivals by Residence, 2015.’’ http://admin.taiwan.net.tw/statistics/year .aspx?no=134. 42. Xu Ziqing and Li Zhongwei, ‘‘Mainland Tour Groups Will be Reduced by One-Third at the End of the Month, A $2 Billion Blow to Tourism,’’ United Daily News (Taiwan), January 23, 2016. Staff translation. 43. Leaf Jiang and Flor Wang, ‘‘Invitation for Taiwan to Attend WHA Meeting Issued: Official,’’ Central News Agency (Taiwan), May 6, 2016. 44. China’s Taiwan Affairs Office, ‘‘Transcript of Taiwan Affairs Office Press Conference’’ (Beijing, China, May 11, 2016). Staff translation. 45. Xinhua, ‘‘CCP Central Committee Taiwan Affairs Office and State Council Taiwan Affairs Office Responsible Person’s Statement on Cross-Strait Relations,’’ China’s Taiwan Affairs Office, May 20, 2016. Staff translation. 46. Xinhua, ‘‘TAO: Cracking Down on Telecommunications Fraud is Supported by the People on Both Sides of the Taiwan Strait,’’ China’s Taiwan Affairs Office, June 25, 2016. Staff translation. 47. Xinhua, ‘‘TAO: Cracking Down on Telecommunications Fraud is Supported by the People on Both Sides of the Taiwan Strait,’’ China’s Taiwan Affairs Office, June 25, 2016. Staff translation. 48. Xinhua, ‘‘TAO: Cracking Down on Telecommunications Fraud is Supported by the People on Both Sides of the Taiwan Strait,’’ China’s Taiwan Affairs Office, June 25, 2016. Staff translation. 49. Lai Xiangru, ‘‘Mainland Affairs Council: Cross-Strait Communication at the Division Director-Level Continues,’’ China Times (Taiwan), June 7, 2016. 50. Taiwan official, meeting with Commission, Taipei, Taiwan, June 22, 2016. 51. Dai Ruifen, ‘‘Zhang Zhijun: The Mainland Will Not Unilaterally Change Agreements that the Two Sides of the Strait Have Already Signed,’’ United Daily News (Taiwan), August 18, 2016. Staff translation. 52. Chen Yanjiao, ‘‘Authoritative Individual from ARATS: Cross-Strait Communication Has Long Been Suspended,’’ United Daily News (Taiwan), May 31, 2016. Staff translation. 53. Lally Weymouth, ‘‘Taiwanese President Tsai Ing-wen: Beijing Must Respect Our Democratic Will,’’ Washington Post, July 21, 2016. 54. Feng Chao and Christie Chen, ‘‘Existing Cross-Strait Pacts to Continue: Chinese Official,’’ Central News Agency (Taiwan), August 18, 2016. 55. Feng Chao and Christie Chen, ‘‘Existing Cross-Strait Pacts to Continue: Chinese Official,’’ Central News Agency (Taiwan), August 18, 2016. 56. Chen Yufu and Zeng Weizhen, ‘‘Lin Chuan: After the Oversight Bill Passes, Then Handle the Services Trade Agreement,’’ Liberty Times (Taiwan), June 4, 2016. Staff translation; Chen Chun-hua and S.C. Chang, ‘‘Taiwan to Continue Talks with China Over Trade-in-Goods Agreement,’’ Central News Agency (Taiwan), May 29, 2016. 57. China Post (Taiwan), ‘‘Cross Strait Oversight Bill Calls for Long-term Planning,’’ April 7, 2015; J. Michael Cole, ‘‘Sunflowers in Springtime: Taiwan’s Crisis and the End of an Era in Cross-Strait Cooperation,’’ Jamestown Foundation, April 9, 2014. 58. China Post (Taiwan), ‘‘Cross Strait Oversight Bill Calls for Long-term Planning,’’ April 7, 2015. VerDate Sep 11 2014 14:49 Nov 01, 2016 Jkt 020587 PO 00000 Frm 00038 Fmt 6601 Sfmt 6621 G:\GSDD\USCC\2016\FINAL\09_C3_M.XXX 09_C3_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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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
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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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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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