ANNUAL REPORT

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dkrause on DSKHT7XVN1PROD with USCC 402 246. Kurt Tong, ‘‘Taiwan’s International Role and the GCTF’’ (Washington, DC, March 2, 2016). 247. Kurt Tong, ‘‘Taiwan’s International Role and the GCTF’’ (Washington, DC, March 2, 2016). 248. Bruce Linghu, ‘‘Taiwan-U.S. International Engagement: The Global Cooperation Training Framework and Beyond’’ (Washington, DC, March 2, 2016). 249. U.S. Department of Commerce, International Trade Administration, interview with Commission staff, September 23, 2016. 250. Chiu Yu-Tzu, ‘‘U.S., Taiwan Tighten Cybersecurity Cooperation,’’ Bloomberg Law, June 1, 2016. 251. Chiu Yu-Tzu, ‘‘U.S., Taiwan Tighten Cybersecurity Cooperation,’’ Bloomberg Law, June 1, 2016. 252. Tony Liao and Y.F. Low, ‘‘Taiwan Has Vital Part in Asia-Pacific Policies,’’ Central News Agency (Taiwan), May 8, 2015. 253. House Foreign Affairs Committee, Hearing on the Promise of the Taiwan Relations Act, written testimony of Kin Moy, March 14, 2014; Senate Committee on Foreign Relations Subcommittee on East Asian and Pacific Affairs, Hearing on Evaluating U.S. Policy on Taiwan on the 35th Anniversary of the Taiwan Relations Act, written testimony of Daniel Russel, April 3, 2014. 254. Chiu Yu-Tzu, ‘‘U.S., Taiwan Tighten Cybersecurity Cooperation,’’ Bloomberg Law, June 1, 2016. 255. House Foreign Affairs Committee Subcommittee on Asia and the Pacific, Hearing on the Future of U.S.-Taiwan Relations, written testimony of Randall Schriver, February 11, 2016; Daniel Blumenthal, ‘‘Unwinding Taiwan’s Cold War Legacy,’’ Foreign Policy (Blog), March 29, 2016. 256. Sara Yi-ying Lin, ‘‘TPP from Taiwan’s Vantage Point: Political, Trade, and Strategic Considerations,’’ Project 2049 Institute, July 2015. 257. Business representative, meeting with Commission, Taipei, Taiwan, June 23, 2016. 258. Richard C. Bush and Joshua Meltzer, ‘‘Taiwan and the Trans-Pacific Partnership: Preparing the Way,’’ Brookings Institution, January 2014, 10. 259. Central Intelligence Agency, ‘‘Country Comparison: GDP (Purchasing Power Parity),’’ in The World Factbook. 260. Richard C. Bush and Joshua Meltzer, ‘‘Taiwan and the Trans-Pacific Partnership: Preparing the Way,’’ Brookings Institution, January 2014, 10. 261. Scholars, Chung-Hua Institute for Economic Research, meeting with Commission, Taipei, Taiwan, June 21, 2016. 262. Scholar, meeting with Commission, Taipei, Taiwan, June 22, 2016. 263. House Foreign Affairs Committee Subcommittee on Asia and the Pacific, Hearing on the Future of U.S.-Taiwan Relations, written testimony of Randall Schriver, February 11, 2016; Randall Schriver, ‘‘Taiwan-U.S. International Engagement: The Global Cooperation Training Framework and Beyond’’ (Washington, DC, March 2, 2016); Ian Easton and Randall Schriver, ‘‘Standing Watch: Taiwan and Maritime Domain Awareness in the Western Pacific,’’ Project 2049 Institute, December 2014, 18; and Bonnie S. Glaser and Jacqueline Vitello, ‘‘Taiwan’s Marginalized Role in International Security: Paying a Price,’’ Center for Strategic and International Studies, January 2015, VIII. 264. House Foreign Affairs Committee Subcommittee on Asia and the Pacific, Hearing on the Future of U.S.-Taiwan Relations, written testimony of Randall Schriver, February 11, 2016. 265. Randall Schriver, ‘‘Taiwan-U.S. International Engagement: The Global Cooperation Training Framework and Beyond’’ (Washington, DC, March 2, 2016). 266. Scholars, Prospect Foundation, meeting with Commission, Taipei, Taiwan, June 22, 2016. 267. Jenny W. Hsu, Jimmy Chuang, and Central News Agency (Taiwan), ‘‘Taiwanese C–130 Lands in Santo Domingo,’’ Taipei Times, January 26, 2010. 268. Cathal O’Connor, ‘‘Foreign Humanitarian Assistance and Disaster-Relief Operations: Lessons Learned and Best Practices,’’ U.S. Naval War College Review 65:1 (Winter 2012): 154–155. 269. Kurt Tong, ‘‘Taiwan’s International Role and the GCTF’’ (Washington, DC, March 2, 2016). 270. Taiwan’s Ministry of Foreign Affairs, ROC Position on the South China Sea Arbitration, July 12, 2016. 271. 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, 1. 272. Bonnie S. Glaser and Jacqueline Vitello, ‘‘Taiwan’s Marginalized Role in International Security: Paying a Price,’’ Center for Strategic and International Stud- VerDate Sep 11 2014 14:49 Nov 01, 2016 Jkt 020587 PO 00000 Frm 00047 Fmt 6601 Sfmt 6621 G:\GSDD\USCC\2016\FINAL\09_C3_M.XXX 09_C3_M
403 ies, January 2015, VII; Adam Minter, ‘‘China Should Want a Stronger Taiwan,’’ Bloomberg, May 12, 2016. dkrause on DSKHT7XVN1PROD with USCC VerDate Sep 11 2014 14:49 Nov 01, 2016 Jkt 020587 PO 00000 Frm 00048 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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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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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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