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108 52. USTR, ‘‘2008 National Trade Estimate Report on Foreign Trade Barriers— China’’ (Washington, DC: May 28, 2008), p. 3. 53. Sundeep Tucker and Patti Waldmeir, ‘‘Deals on Hold’’ Financial Times, July 28, 2008. 54. The antimonopoly law chapter on monopoly agreements contains, for example, the equivalent of article 81 of the EC (European Community) treaty and section 1 of the U.S. Sherman Act. See Dewey & LeBoeuf, ‘‘The New China Anti-Monopoly Law,’’ August 27, 2008. www.deweyleboeuf.com/files/News/437149c0–0ada–4f84– ab77–4fe4025ae984/Presentation/NewsAttachment/b55eeb3a–606d–4253–a4dd–500b 69583768/Client%20Alertl20080826.pdf. 55. Jones Day, ‘‘New Chinese Anti-Monopoly Law,’’ October 2007. www.jonesday .com/pubs/pubsldetail.aspxpubID=S4662. 56. Sundeep Tucker and Patti Waldmeir, ‘‘Deals on Hold’’ Financial Times, July 28, 2008. 57. Jones Day, ‘‘New Chinese Anti-Monopoly Law,’’ October 2007. www.jonesday .com/pubs/pubsldetail.aspxpubID=S4662. 58. Under U.S. law, for example, a patent holder would not be permitted to seek to leverage its lawful monopoly IP rights to extend them beyond the proper scope of the patent. See U.S. Patent Law, ‘‘Chapter 28—Infringement of Patents,’’ 35 U.S.C. § 271(d). www.uspto.gov/web/offices/pac/mpep/consolidatedllaws.pdf. 59. Jones Day, ‘‘New Chinese Anti-Monopoly Law,’’ October 2007. www.jonesday .com/pubs/pubsldetail.aspxpubID=S4662. 60. Sundeep Tucker and Patti Waldmeir, ‘‘Deals on Hold’’ Financial Times, July 28, 2008. 61. Lui Chun Fai, ‘‘Chinese Antitrust Regime May Affect PEs [private equity funds],’’ China Daily, August 6, 2008. 62. See U.S. Department of Justice and Federal Trade Commission, Antitrust Enforcement Guidelines for International Operations (Washington, DC: April 1995), Section 3 Threshold International Enforcement Issues. www.usdoj.gov/atr/public/ guidelines/internat.htm. 63. Sundeep Tucker and Patti Waldmeir, ‘‘Deals on Hold’’ Financial Times, July 28, 2008. 64. Jones Day, ‘‘New Chinese Anti-Monopoly Law,’’ October 2007. www.jonesday .com/pubs/pubsldetail.aspxpubID=S4662. 65. Patti Waldmeir, ‘‘Beijing to Tighten Foreign Companies Law,’’ Financial Times, July 2, 2008; Liu Xiaojun, ‘‘Novelty Requirement for Granting Patent Right for Design,’’ China Intellectual Property, February 1, 2008. www.chinaipmagazine .com/en/journal-show.aspid=261. 66. ‘‘New Labor Law Introduced in China,’’ Bloomberg, January 1, 2008. 67. Zhou Xin and Jason Subler, ‘‘New Chinese Labor Law Gives Employers the Jitters,’’ Reuters, December 18, 2008. 68. Ariana Eunjung Cha, ‘‘New Law Gives Chinese Workers Power, Gives Business Nightmares,’’ Washington Post, April 14, 2008. 69. Zhou Xin and Jason Subler, ‘‘New Chinese Labor Law Gives Employers the Jitters,’’ Reuters, December 18, 2008. 70. Zhou Xin and Jason Subler, ‘‘New Chinese Labor Law Gives Employers the Jitters,’’ Reuters, December 18, 2008. 71. Han Dongfang, ‘‘Labor Law Strengthens Chinese Union,’’ Asia Times Online, January 18, 2008. 72. Zhou Xin and Jason Subler, ‘‘New Chinese Labor Law Gives Employers the Jitters,’’ Reuters, December 18, 2008. 73. Ariana Eunjung Cha, ‘‘New Law Gives Chinese Workers Power, Gives Business Nightmares,’’ Washington Post, April 14, 2008. 74. David Barboza, ‘‘China Tells Businesses to Unionize,’’ New York Times, September 12, 2008. 75. Terrence Poon and Jason Dean, ‘‘China Eases Currency Rules,’’ Wall Street Journal, August 7, 2008. 76. Andrew Wood and Peter Garnham, ‘‘China Introduces New Forex [foreign exchange] Controls,’’ Financial Times, August 7, 2008. 77. ‘‘SAFE to Check Banks’ Forex Business,’’ China Daily, August 30, 2008. 78. Xin Zhiming, ‘‘New Forex Rules Seek to Balance Capital Flow,’’ China Daily, August 12, 2008. OSC ID: CPP20080812968080. www.opensource.gov. 79. USTR, ‘‘2008 National Trade Estimate Report on Foreign Trade Barriers— China’’ (Washington, DC: May 28, 2008), p. 1. 80. USTR, ‘‘2008 National Trade Estimate Report on Foreign Trade Barriers— China’’ (Washington, DC: May 28, 2008), p. 1. 81. USTR, ‘‘2008 National Trade Estimate Report on Foreign Trade Barriers— China’’ (Washington, DC: May 28, 2008), p. 2.
109 82. USTR, ‘‘2008 National Trade Estimate Report on Foreign Trade Barriers— China’’ (Washington, DC: May 28, 2008), pp. 2–3. 83. USTR, ‘‘2008 National Trade Estimate Report on Foreign Trade Barriers— China’’ (Washington, DC: May 28, 2008), pp. 2–3. 84. Jennifer M. Freedman, ‘‘EU, U.S. File WTO Complaint Over Chinese Media Curbs,’’ Bloomberg, March 3, 2008. 85. Delegation of the United States to the WTO, ‘‘China—Measures Affecting Financial Information Services and Foreign Financial Information Suppliers,’’ Dispute DS373. March 3, 2008. www.wto.org/english/tratople/dispule/casesle/ds373le. htm. 86. Jennifer M. Freedman, ‘‘EU, U.S. File WTO Complaint Over Chinese Media Curbs,’’ Bloomberg, March 3, 2008. 87. USTR, ‘‘China—Measures Affecting Imports of Automobile Parts,’’ Dispute DS340, first written submission of the United States of America, March 13, 2007. www.ustr.gov/assets/TradelAgreements/MonitoringlEnforcement/DisputelSettle ment/WTO/DisputelSettlementlListings/assetluploadlfile677l11099.pdf. 88. Jennifer M. Freedman, ‘‘China Appeals WTO Ruling Against Car-Parts Tariffs,’’ Bloomberg, September 15, 2008. 89. Felicia Loo, ‘‘After Olympics Binge, China Reverts to Fuel Exports,’’ Reuters, September 5, 2008; U.S.-China Economic and Security Review Commission, Hearing on Research and Development, Technological Advances in Key Industries, and Changing Trade Flows with China, written testimony of Qingjiu Tao, July 16, 2008. 90. ‘‘Taking Another Road,’’ Economist, August 21, 2008. 91. Delegation of the People’s Republic of China to the WTO, ‘‘United States— Definitive Anti-Dumping and Countervailing Duties on Certain Products from China,’’ Dispute DS379, September 19, 2008, pp. 1–2. www.wto.org/english/ tratople/dispule/casesle/ds379le.htm. 92. Delegation of the People’s Republic of China to the WTO, ‘‘United States— Definitive Anti-Dumping and Countervailing Duties on Certain Products from China,’’ Dispute DS379, September 19, 2008, pp. 3–5. www.wto.org/english/ tratople/dispule/casesle/ds379le.htm; ‘‘China Requests WTO Consultations on U.S. AD [antidumping], CVD [countervailing duty] Calculations,’’ Inside U.S.-China Trade, September 24, 2008. 93. ‘‘China Requests WTO Consultations on U.S. AD, CVD Calculations,’’ Inside U.S.-China Trade, September 24, 2008. 94. Delegation of the United States to the WTO, ‘‘China’s Transitional Review Mechanism,’’ submitted to WTO Committee on Agriculture, Document G/AG/W/69, August 13, 2008, p. 1. 95. Delegation of the United States to the WTO, ‘‘China’s Transitional Review Mechanism,’’ submitted to WTO Committee on Agriculture, Document G/AG/W/69, August 13, 2008, p. 3. 96. Delegation of the United States to the WTO, ‘‘China’s Transitional Review Mechanism,’’ submitted to WTO Committee on Agriculture, Document G/AG/W/69, August 13, 2008, p. 3. 97. Dan Newman, ‘‘WTO Panel Issues Mixed Interim Ruling in China IPR Enforcement Case,’’ Inside U.S.-China Trade, October 9, 2008. 98. Dan Newman, ‘‘WTO Panel Issues Mixed Interim Ruling in China IPR Enforcement Case,’’ Inside U.S.-China Trade, October 9, 2008. 99. Dan Newman, ‘‘WTO Panel Issues Mixed Interim Ruling in China IPR Enforcement Case,’’ Inside U.S.-China Trade, October 9, 2008. 100. James Politi and Geoff Dyer, ‘‘U.S. Set to Challenge China Over Steel Prices,’’ Financial Times, September 3, 2008. 101. James Politi and Geoff Dyer, ‘‘U.S. Set to Challenge China Over Steel Prices,’’ Financial Times, September 3, 2008. 102. Keith Bradsher, ‘‘Trade Talks Broke Down After Chinese Shift on Food,’’ International Herald Tribune, July 30, 2008. 103. ‘‘U.S.-China Rift on Farm Safeguard, NAMA [nonagricultural market access] Helps Torpedo Doha Round,’’ Inside U.S.-China Trade, July 30, 2008; ‘‘China Dismisses Developed Nations’ Accusations in WTO Talks as ‘Groundless’,’’ Xinhua, July 29, 2008. 104. ‘‘Chinese President: Food Issue Concerns World’s Development, Security,’’ Xinhua, July 9, 2008. news.xinhuanet.com/english/2008–07/09/contentl8516647. htm. 105. C. Fred Bergsten, ‘‘China and the Collapse of Doha,’’ Foreign Affairs, August 27, 2008. www.foreignaffairs.org/20080827faupdate87576/c-fred-bergsten/china-andthe-collapse-of-doha.html. 106. Dexter Roberts and Frederik Balfour, ‘‘China’s Economic Torch Won’t Outlast Olympics,’’ BusinessWeek, August 14, 2008.
Page 1 and 2:
USCC 2008 ANNUAL REPORT
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1 2008 REPORT TO CONGRESS of the U.
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U.S.-CHINA ECONOMIC AND SECURITY RE
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CONTENTS Page TRANSMITTAL LETTER TO
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INDEX OF TABLES AND FIGURES 2008 RE
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2 economic, security, diplomatic, a
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4 China’s Capital Investment Vehi
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6 • Antidumping penalties imposed
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8 rities of other nations and cause
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10 Conclusions China’s Current En
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12 other countries that rely on Chi
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14 vein, there appears to be a stro
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16 lator of all financial services
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18 • Identifying substandard ship
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20 During the year, China continued
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22 U.S. inspections of prisons to e
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24 to the uncertainty during the su
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26 U.S. exports to China were 20 pe
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28 currency for RMB to obtain forei
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30 of supply and demand in the fore
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32 troversial is whether the treaty
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34 erty (IP) rights holders from en
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36 New Currency Rules China’s und
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38 brought in 2006 by the United St
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40 sectoral talks on farm trade. In
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42 tinue buying foreign exchange, t
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44 difference between temporary, th
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46 The Administrative Structure and
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48 U.S. dollar and has appreciated
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50 Development Committee and other
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52 drawn some fairly conventional l
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54 demonstrates the great length to
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56 cent revelations of the activiti
Page 68 and 69: 58 of China by way of the investmen
Page 70 and 71: 60 Ltd. attempted to acquire the U.
Page 72 and 73: 62 not be applied necessarily in th
Page 74 and 75: 64 economy—from ports and telecom
Page 76 and 77: 66 asset allocations, benchmarks, a
Page 78 and 79: 68 the investments, viewing them as
Page 80 and 81: 70 and printed circuits in order to
Page 82 and 83: 72 2006, R&D spending in China from
Page 84 and 85: 74 tios—two of Asia’s technolog
Page 86 and 87: 76 The last time the United States
Page 88 and 89: 78 pendent players. However, this m
Page 90: 80 aviation industry and has a role
Page 93 and 94: SECTION 4: A CASE STUDY OF THE LOCA
Page 95 and 96: 85 The rise of industrial fish farm
Page 97 and 98: 87 According to the Southern Shrimp
Page 99 and 100: 89 the increasing import base. The
Page 101 and 102: 91 nated fish are discovered after
Page 103 and 104: 93 At the time this Report was comp
Page 105 and 106: 95 port with the hope it will be ad
Page 107 and 108: 97 Restaurants also are exempted by
Page 109 and 110: 99 entire dusted product is from Ch
Page 111 and 112: 101 written and approved, which is
Page 113 and 114: RECOMMENDATIONS The U.S.-China Trad
Page 115 and 116: 105 gress could enable consumers to
Page 117: 107 26. ‘‘China Central Bank to
Page 121 and 122: 111 121. U.S.-China Economic and Se
Page 123 and 124: 113 173. ‘‘China’s Stake in B
Page 127 and 128: 117 282. International Working Grou
Page 131 and 132: 121 361. Food & Water Watch, ‘‘
Page 133: 123 Louisiana and the U.S. Gulf Coa
Page 136 and 137: 126 While witnesses concluded that
Page 138 and 139: 128 China’s Nonproliferation Comm
Page 140 and 141: 130 State during the interdiction o
Page 142 and 143: 132 Northwest National Laboratory
Page 144 and 145: 134 UN Security Council resolutions
Page 146 and 147: 136 ployment, this change would inf
Page 148 and 149: 138 ing Iran’s missile program on
Page 150 and 151: SECTION 2: CHINA’S VIEWS OF SOVER
Page 152 and 153: 142 ficing the principle behind it.
Page 154 and 155: 144 baseline. Other states enjoy ov
Page 156 and 157: 146 India, Vietnam, Taiwan, and oth
Page 158 and 159: 148 as, ‘‘What constitutes a sp
Page 160 and 161: 150 The proposed PAROS treaty itsel
Page 162 and 163: 152 enhance China’s assertions of
Page 164 and 165: 154 Media and Public Opinion Warfar
Page 166 and 167: SECTION 3: THE NATURE AND EXTENT OF
Page 168 and 169:
158 Today, China’s space program
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160 The Management Structure for Ch
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162 • Launching geostationary orb
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164 bility to conduct cyber operati
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166 tions between the NIPRNet and t
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RECOMMENDATIONS China’s Prolifera
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170 ENDNOTES FOR CHAPTER 2 1. U.S.-
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172 41. U.S.-China Economic and Sec
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174 80. Janice E. Thomson, ‘‘St
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176 112. Reinhard Drifte, ‘‘Jap
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178 149. U.S.-China Economic and Se
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Page 193 and 194:
CHAPTER 3 CHINA’S ENERGY AND ENVI
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185 A growing share of energy deman
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187 pleted. Without the discovery a
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189 A Survey of China’s Interests
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191 projects that imports of natura
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193 and design of the units. 71 Chi
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195 dioxide, nitrous oxide, mercury
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197 sions are realized and producti
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199 ferent interests that motivate
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201 the oil, gas, coal, and power i
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203 fluential figures in business a
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205 The Terminology Used to Describ
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207 velop international and domesti
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209 that growth must occur in an en
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211 servation. Officials highlighte
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213 grated Gasification Combined Cy
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215 Obtaining sufficient movement f
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217 nology and finding ways to make
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219 • As the negotiations for a p
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Page 233 and 234:
223 tent.aspxdata=EmergingMktlconte
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225 13, 2008. These tools include s
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Page 239 and 240:
229 ergy Group, Environmental Energ
Page 241 and 242:
CHAPTER 4 CHINA’S FOREIGN ACTIVIT
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233 China will seek to displace the
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235 China to help resolve them. 22
Page 247 and 248:
237 presenting itself as an accepta
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239 China’s infrastructure invest
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241 IMF. The Angolan government exp
Page 253 and 254:
243 China’s Conventional Arms Sal
Page 255 and 256:
245 Kurlantzick testified that Chin
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247 pendent of their legislatures a
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249 diplomacy and in the internatio
Page 261 and 262:
SECTION 2: CHINA’S RELATIONSHIPS
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PART 1: TAIWAN The Significance of
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255 PRC pressure directed against T
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257 this end. 150 (Additional infor
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259 Discussions Regarding Arms Sale
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261 ernment is committed to set ann
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263 • Arms purchases from the Uni
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265 China, appreciation of the RMB,
Page 277 and 278:
267 Days later, although they did n
Page 279 and 280:
Introduction PART 3: THE REPUBLIC O
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271 South Korean officials emphasiz
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273 mount among the ROK’s diploma
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275 Even after approving these grad
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277 exercising undue influence—be
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RECOMMENDATIONS China’s Expanding
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Page 293 and 294:
283 42. UN Conference on Trade and
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Page 297 and 298:
287 134. Calculation performed by C
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289 184. ‘‘Factbox: Key facts o
Page 301 and 302:
CHAPTER 5 CHINA’S MEDIA AND INFOR
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293 The central role of the Propaga
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295 thoritarian post-Soviet governm
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297 Some of the measures taken by C
Page 309 and 310:
299 Images of ‘‘Jing-Jing’’
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301 Legislation was introduced duri
Page 313 and 314:
303 In addition to promoting a powe
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305 Chinese Government Restrictions
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307 search engine and the servers s
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309 media, the Internet, popular en
Page 321 and 322:
311 ENDNOTES FOR CHAPTER 5 1. David
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313 image-of-internet-police-jingji
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Page 328 and 329:
318 China’s prison labor system,
Page 330 and 331:
320 most literal sense, the term la
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322 treatment of Falun Gong practit
Page 334 and 335:
324 lowing its signing. According t
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326 granted just three of 18 prison
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328 Mr. Marck, who is the partial o
Page 340 and 341:
330 complaints involving internatio
Page 342 and 343:
RECOMMENDATIONS • The Commission
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334 28. U.S. Department of Homeland
Page 347 and 348:
COMPREHENSIVE LIST OF THE COMMISSIO
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339 gram. By expanding this volunta
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341 27. The Commission recommends t
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343 43. The Commission recommends t
Page 355 and 356:
345 ADDITIONAL VIEWS OF COMMISSIONE
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347 ADDITIONAL VIEWS OF COMMISSIONE
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APPENDIX I UNITED STATES-CHINA ECON
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351 (iii) make all subsequent appoi
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353 (2) Information. The Commission
Page 365 and 366:
355 In each Section and Subsection
Page 367:
357 ecutive Schedule under section
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360 member of the Academic Advisory
Page 372 and 373:
362 nomic, defense, and foreign pol
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364 formulated by the Committee suc
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366 Commissioner Shea is an attorne
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368 than twenty years, leaving his
Page 381 and 382:
APPENDIX III PUBLIC HEARINGS OF THE
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373 May 20, 2008: Public Hearing on
Page 385 and 386:
APPENDIX IIIA LIST OF WITNESSES TES
Page 387 and 388:
377 Alphabetical Listing of Panelis
Page 389:
379 Alphabetical Listing of Panelis
Page 392 and 393:
382 REPUBLIC OF KOREA, JAPAN AND TA
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APPENDIX V LIST OF U.S. SANCTIONS I
Page 397:
387 Date Imposed Entity/Person Cont
Page 401 and 402:
APPENDIX VII ABBREVIATIONS AND ACRO
Page 403:
393 UNGA UN PKO USD USDA USITC USTR
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