ANNUAL REPORT

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496 RECOMMENDATIONS China and the U.S. Rebalance to Asia The Commission recommends: • Congress express support for more frequent U.S. freedom of navigation operations in the South China Sea in conjunction with U.S. allies and partners. • Congress direct the U.S. Department of Defense to include a permanent section in its Annual Report on Military and Security Developments Involving the People’s Republic of China on the role and activities of China’s maritime militia and the implications for U.S. naval operations. dkrause on DSKHT7XVN1PROD with USCC VerDate Sep 11 2014 12:36 Nov 02, 2016 Jkt 020587 PO 00000 Frm 00022 Fmt 6601 Sfmt 6601 G:\GSDD\USCC\2016\FINAL\11_C4_B_M.XXX 11_C4_B_M
dkrause on DSKHT7XVN1PROD with USCC 497 ENDNOTES FOR CHAPTER 4 1. White House, Remarks by President Obama to the Australian Parliament, November 17, 2011. 2. White House, Remarks by President Obama to the Australian Parliament, November 17, 2011. 3. White House, Remarks by President Obama to the Australian Parliament, November 17, 2011. 4. White House, Remarks by President Obama to the Australian Parliament, November 17, 2011. 5. White House, Remarks by President Obama to the Australian Parliament, November 17, 2011. 6. White House, National Security Strategy, February 2015, 2; White House, National Security Strategy, May 2010, 7. 7. White House, Remarks by President Obama to the Australian Parliament, November 17, 2011. 8. Kurt M. Campbell, The Pivot, 2016, 178–179, 181–182; Arthur Herman, ‘‘The Showdown in the South China Sea,’’ National Review, January 6, 2016; Phillip C. Saunders, ‘‘China’s Role in Asia: Attractive or Assertive?’’ in David Shambaugh and Michael Yahuda, eds., International Relations of Asia, Rowman and Littlefield, 2014, 147; Sheila Smith, ‘‘A Sino-Japanese Clash in the East China Sea,’’ Council on Foreign Relations Contingency Planning Memorandum 18, April 2013; Alastair Iain Johnson, ‘‘How New and Assertive Is China’s New Assertiveness?’’ International Security 37:4, 2013, 9–12; Daniel Blumenthal, ‘‘What Happened to China’s ‘Peaceful Rise’?’’ Foreign Policy, October 21, 2010; and Michael Swaine, ‘‘Perceptions of an Assertive China,’’ Carnegie Endowment for International Peace, May 3, 2010, 1–2. 9. U.S. Department of Defense, Secretary of Defense Remarks on ‘‘Asia-Pacific’s Principled Security Network’’ at 2016 IISS Shangri-La Dialogue, June 4, 2016; White House, Remarks by President Obama to the Australian Parliament, November 17, 2011. 10. Dave Majumdar, ‘‘Defense Secretary Ashton Carter Offers Olive Branch to China,’’ National Interest, June 21, 2016; U.S. Department of Defense, Secretary of Defense Remarks on ‘‘Asia-Pacific’s Principled Security Network’’ at 2016 IISS Shangri-La Dialogue, June 4, 2016; White House, Remarks by President Obama to the Australian Parliament, November 17, 2011. 11. U.S.-China Economic and Security Review Commission, Hearing on China and the U.S. Rebalance to Asia, written testimony of Walter Lohman, March 31, 2016. 12. U.S.-China Economic and Security Review Commission, Hearing on China and the U.S. Rebalance to Asia, written testimony of Dan Blumenthal, March 31, 2016. 13. U.S.-China Economic and Security Review Commission, Hearing on China and the U.S. Rebalance to Asia, written testimony of Sheila Smith, March 31, 2016; U.S.-China Economic and Security Review Commission, Hearing on China and the U.S. Rebalance to Asia, written testimony of David Lampton, March 31, 2016; U.S.- China Economic and Security Review Commission, Hearing on China and the U.S. Rebalance to Asia, written testimony of Dan Blumenthal, March 31, 2016. 14. U.S. Department of Defense, Secretary of Defense Remarks on ‘‘Asia-Pacific’s Principled Security Network’’ at 2016 IISS Shangri-La Dialogue, June 4, 2016. 15. White House, Remarks by President Obama to the Australian Parliament, November 17, 2011; Hillary Clinton, ‘‘America’s Pacific Century,’’ Foreign Policy, October 11, 2011. 16. Richard Weitz, ‘‘Pivot Out, Rebalance In,’’ Diplomat (Japan), May 3, 2012; Stephen Cohen, ‘‘Asia Pivot: Obama’s Ticket out of Middle East?’’ Brookings Institution, August 21, 2013. 17. White House, Fact Sheet: Advancing the Rebalance to Asia and the Pacific, November 16, 2015; White House, Remarks as Prepared for Delivery by National Security Advisor Susan E. Rice, November 21, 2013; Thomas Donilon, ‘‘Complete Transcript: Thomas Donilon at Asia Society New York,’’ Asia Society, March 11, 2013. 18. Harry B. Harris, Jr., ‘‘Strategic Opportunities in the Indo-Asia-Pacific’’ (Center for Strategic and International Studies Military Strategy Forum Event, Washington, DC, January 27, 2016). 19. Terri Moon Cook, ‘‘Pacom Commander: Rebalance to Asia-Pacific ‘Being Realized,’ ’’ U.S. Department of Defense, Feb. 25, 2016. 20. U.S.-China Economic and Security Review Commission, Hearing on China and the U.S. Rebalance to Asia, written testimony of Walter Lohman, March 31, 2016; U.S. Marine Corps, U.S. Marine Corps Forces, Pacific (MARFORPAC), March VerDate Sep 11 2014 12:36 Nov 02, 2016 Jkt 020587 PO 00000 Frm 00023 Fmt 6601 Sfmt 6621 G:\GSDD\USCC\2016\FINAL\11_C4_B_M.XXX 11_C4_B_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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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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Page 539 and 540: APPENDIX II BACKGROUND OF COMMISSIO
Page 549 and 550: APPENDIX III PUBLIC HEARINGS OF THE
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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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