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174 80. Janice E. Thomson, ‘‘State Sovereignty in International Relations: Bridging the Gap between Theory and Empirical Research,’’ International Studies Quarterly, Vol. 39, No. 2, June 1995, 213–233. 81. S.C.M. Paine, The Sino-Japanese War of 1894–1895: Perceptions, Power, and Primacy (Cambridge University Press, Cambridge, UK: 2003), p. 27. 82. S.C.M. Paine, The Sino-Japanese War of 1894–1895: Perceptions, Power, and Primacy (Cambridge University Press, Cambridge, UK: 2003), p. 272. 83. Dr. Dreyer served as a member of this Commission from 2001 to 2005. U.S.- China Economic and Security Review Commission, Hearing on China’s Views of Sovereignty and Methods of Access Control, testimony of June Teufel Dreyer, February 27, 2008. 84. Embassy of the People’s Republic of China in the United Kingdom of Great Britain and Northern Ireland, ‘‘Five Principles of Peaceful Coexistence,’’ October 10, 2003. www.chinese-embassy.org.uk/eng/wjzc/t27084.htm. 85. M. Taylor Fravel, ‘‘Regime Insecurity and International Cooperation: Explaining China’s Compromises in Territorial Disputes,’’ International Security, Vol. 30, No. 2, Fall 2005, 46. 86. ‘‘China and Russia sign border deal,’’ BBC News, July 21, 2008; Russian News and Information Agency, ‘‘Handover of Russian islands to China seen as effective diplomacy,’’ October 14, 2008. 87. U.S.-China Economic and Security Review Commission, 2007 Report to Congress (Washington, DC: 2007), p. 227. 88. ‘‘The One-China Principle and the Taiwan Issue,’’ released by the Taiwan Affairs Office and the Information Office of the State Council. http://www.gwytb. gov.cn:8088/detail.asptable=WhitePaper&title=White&mlid=4. 89. ‘‘The One-China Principle and the Taiwan Issue,’’ released by the Taiwan Affairs Office and the Information Office of the State Council. http://www.gwytb. gov.cn:8088/detail.asptable=WhitePaper&title=White&mlid=4. 90. The ‘‘first island chain’’ refers to the line extending from the Kuriles through Japan, the Ryukyu Islands, Taiwan, the Philippines, and the Indonesian archipelago (encompassing the South and East China Sea), the land areas closest to the coast of mainland East Asia. Chris Rahman, ‘‘Defending Taiwan, and why it matters,’’ Naval War College Review, Autumn 2001, 73, 77. 91. The United States signed the United Nations Convention on the Law of the Sea in 1994. United Nations, Division for Ocean Affairs and Law of the Sea, ‘‘Chronological lists of ratifications of, accessions and successions to the Convention and the related Agreements as of 26 September 2008.’’ http://www.un.org/Depts/los/referencelfiles/chronologicalllistsloflratifications.htm#The%20United % 20Nations % 20Convention % 20on%20the % 20Law%20of%20the%20Sea. 92. United Nations Convention on the Law of the Sea, December 10, 1982. http:// www.un.org/Depts/los/conventionlagreements/texts/unclos/closindx.htm. 93. United Nations Convention on the Law of the Sea, December 10, 1982. http:// www.un.org/Depts/los/conventionlagreements/texts/unclos/closindx.htm. 94. United Nations Convention on the Law of the Sea, December 10, 1982. http:// www.un.org/Depts/los/conventionlagreements/texts/unclos/closindx.htm. According to section 3 (A), article 19 in the Law of the Sea Treaty, ‘‘Passage of a foreign ship shall be considered to be prejudicial to the peace, good order or security of the coastal State if in the territorial sea it engages in any of the following activities: (a) any threat or use of force against the sovereignty, territorial integrity or political independence of the coastal State, or in any other manner in violation of the principles of international law embodied in the Charter of the United Nations; (b) any exercise or practice with weapons of any kind; (c) any act aimed at collecting information to the prejudice of the defense or security of the coastal State; (d) any act of propaganda aimed at affecting the defense or security of the coastal State; (e) the launching, landing or taking on board of any aircraft; (f) the launching, landing or taking on board of any military device; (g) the loading or unloading of any commodity, currency or person contrary to the customs, fiscal, immigration or sanitary laws and regulations of the coastal State; (h) any act of willful and serious pollution contrary to this Convention; (i) any fishing activities; (j) the carrying out of research or survey activities; (k) any act aimed at interfering with any systems of communication or any other facilities or installations of the coastal State; (l) any other activity not having a direct bearing on passage.’’ 95. The declaration refers to islands as listed in article 2 of the Law of the People’s Republic of China on the Territorial Sea and the Contiguous Zone, February 25, 1992. http://www.un.org/Depts/los/LEGISLATIONANDTREATIES/PDFFILES/ CHNl1992lLaw.pdf.
175 96. United Nations Convention on the Law of the Sea, Declarations and Statements, http://www.un.org/Depts/los/conventionlagreements/conventionldeclarations. htm#China%20Upon%20ratification. 97. Article 19, United Nations Convention on the Law of the Sea, December 10, 1982. http://www.un.org/Depts/los/conventionlagreements/texts/unclos/closindx.htm. 98. United Nations Convention on the Law of the Sea, Declarations and Statements, http://www.un.org/Depts/los/conventionlagreements/conventionldeclarations. htm#China%20Upon%20ratification. 99. U.S.-China Economic and Security Review Commission, Hearing on China’s Views of Sovereignty and Methods of Access Control, testimony of June Teufel Dreyer, February 27, 2008; U.S.-China Economic and Security Review Commission, Hearing on China’s Views of Sovereignty and Methods of Access Control, testimony of Peter A. Dutton, February 27, 2008. 100. Exclusive Economic Zone and Continental Shelf Act (adopted at the third session of the Standing Committee of the Ninth National People’s Congress, June 26, 1998), UN Web site. http://www.un.org/Depts/los/LEGISLATIONANDTREATIES/ PDFFILES/chnl1998leezlact.pdf. 101. Yann-Huei Song and Zou Keyuan, ‘‘Maritime Legislation of Mainland China and Taiwan: Developments, Comparison, Implications, and Potential Challenges for the United States,’’ Ocean Development and International Law, Vol. 31, Iss. 4, 2000, 310. 102. Zhu Fenglan, ‘‘The Delimitation of East China Sea Continental Shelf: Sino- Japanese Disputes from the Perspective of International Law,’’ China International Studies, Fall 2006. http://iaps.cass.cn/English/Articles/showcontent.aspid=793. 103. Article 76, United Nations Convention on the Law of the Sea, December 10, 1982. http://www.un.org/Depts/los/conventionlagreements/texts/unclos/closindx.htm. 104. U.S.-China Economic and Security Review Commission, Hearing on China’s Views of Sovereignty and Methods of Access Control, testimony of Philip Meek, February 27, 2008. 105. U.S.-China Economic and Security Review Commission, 2007 Report to Congress (Washington, DC: 2007), p. 271. 106. Reinhard Drifte, ‘‘Japanese-Chinese territorial disputes in the East China Sea—between military confrontation and economic cooperation,’’ Working paper, Asia Research Centre (London School of Economics and Political Science, London, UK: August 2008). http://www.lse.ac.uk/collections/asiaResearchCentre/pdf/Working Paper/ARCWorkingPaper24Drifte2008.pdf. 107. James C. Hsiung, ‘‘Sea Power, the Law of the Sea, and China-Japan East China Sea ‘‘Resource War,’’ Paper presented at the Forum on China and the Sea, Institute of Sustainable Development, Macau University of Science and Technology, Macau, China, October 9–11, 2005. http://www.nyu.edu/gsas/dept/politics/faculty/ hsiung/sealpower.pdf. 108. Reinhard Drifte, ‘‘Japanese-Chinese territorial disputes in the East China Sea—between military confrontation and economic cooperation.’’ Working paper, Asia Research Centre (London School of Economics and Political Science, London, UK: August 2008). http://www.lse.ac.uk/collections/asiaResearchCentre/pdf/Working Paper/ARCWorkingPaper24Drifte2008.pdf. 109. Article 15 in the Law of the Sea Treaty: ‘‘Delimitation of the territorial sea between States with opposite or adjacent coasts. Where the coasts of two States are opposite or adjacent to each other, neither of the two States is entitled, failing agreement between them to the contrary, to extend its territorial sea beyond the median line every point of which is equidistant from the nearest points on the baselines from which the breadth of the territorial seas of each of the two States is measured. The above provision does not apply, however, where it is necessary by reason of historic title or other special circumstances to delimit the territorial seas of the two States in a way which is at variance therewith.’’ 110. Reinhard Drifte, ‘‘Japanese-Chinese territorial disputes in the East China Sea—between military confrontation and economic cooperation,’’ Working paper, Asia Research Centre (London School of Economics and Political Science, London, UK: August 2008). http://www.lse.ac.uk/collections/asiaResearchCentre/pdf/Working Paper/ARCWorking Paper24Drifte2008.pdf; Choon-Ho Park, Seabed Boundary Issues in the East China Sea (Woodrow Wilson International Center for Scholars, Washington, DC). http://www.wilsoncenter.org/topics/docs/Choon-HolParkl1l.pdf. 111. Reinhard Drifte, ‘‘Japanese-Chinese territorial disputes in the East China Sea—between military confrontation and economic cooperation,’’ Working paper, Asia Research Centre (London School of Economics and Political Science, London, UK: August 2008). http://www.lse.ac.uk/collections/asiaResearchCentre/pdf/Working Paper/ARCWorkingPaper24Drifte2008.pdf.
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
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58 of China by way of the investmen
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60 Ltd. attempted to acquire the U.
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62 not be applied necessarily in th
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64 economy—from ports and telecom
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66 asset allocations, benchmarks, a
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68 the investments, viewing them as
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70 and printed circuits in order to
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72 2006, R&D spending in China from
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74 tios—two of Asia’s technolog
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76 The last time the United States
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78 pendent players. However, this m
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80 aviation industry and has a role
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SECTION 4: A CASE STUDY OF THE LOCA
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85 The rise of industrial fish farm
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87 According to the Southern Shrimp
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89 the increasing import base. The
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91 nated fish are discovered after
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93 At the time this Report was comp
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95 port with the hope it will be ad
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97 Restaurants also are exempted by
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99 entire dusted product is from Ch
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101 written and approved, which is
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RECOMMENDATIONS The U.S.-China Trad
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105 gress could enable consumers to
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107 26. ‘‘China Central Bank to
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109 82. USTR, ‘‘2008 National T
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111 121. U.S.-China Economic and Se
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113 173. ‘‘China’s Stake in B
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117 282. International Working Grou
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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
Page 170 and 171: 160 The Management Structure for Ch
Page 172 and 173: 162 • Launching geostationary orb
Page 174 and 175: 164 bility to conduct cyber operati
Page 176 and 177: 166 tions between the NIPRNet and t
Page 178 and 179: RECOMMENDATIONS China’s Prolifera
Page 180 and 181: 170 ENDNOTES FOR CHAPTER 2 1. U.S.-
Page 182 and 183: 172 41. U.S.-China Economic and Sec
Page 186 and 187: 176 112. Reinhard Drifte, ‘‘Jap
Page 188 and 189: 178 149. U.S.-China Economic and Se
Page 190 and 191: 180 198. U.S.-China Economic and Se
Page 193 and 194: CHAPTER 3 CHINA’S ENERGY AND ENVI
Page 195 and 196: 185 A growing share of energy deman
Page 197 and 198: 187 pleted. Without the discovery a
Page 199 and 200: 189 A Survey of China’s Interests
Page 201 and 202: 191 projects that imports of natura
Page 203 and 204: 193 and design of the units. 71 Chi
Page 205 and 206: 195 dioxide, nitrous oxide, mercury
Page 207 and 208: 197 sions are realized and producti
Page 209 and 210: 199 ferent interests that motivate
Page 211 and 212: 201 the oil, gas, coal, and power i
Page 213 and 214: 203 fluential figures in business a
Page 215 and 216: 205 The Terminology Used to Describ
Page 217 and 218: 207 velop international and domesti
Page 219 and 220: 209 that growth must occur in an en
Page 221 and 222: 211 servation. Officials highlighte
Page 223 and 224: 213 grated Gasification Combined Cy
Page 225 and 226: 215 Obtaining sufficient movement f
Page 227 and 228: 217 nology and finding ways to make
Page 229 and 230: 219 • As the negotiations for a p
Page 231 and 232: 221 ENDNOTES FOR CHAPTER 3 1. U.S.-
Page 233 and 234: 223 tent.aspxdata=EmergingMktlconte
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225 13, 2008. These tools include s
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229 ergy Group, Environmental Energ
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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
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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
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243 China’s Conventional Arms Sal
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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
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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,
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267 Days later, although they did n
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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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281 ENDNOTES FOR CHAPTER 4 1. U.S.-
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283 42. UN Conference on Trade and
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285 87. U.S.-China Economic and Sec
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287 134. Calculation performed by C
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289 184. ‘‘Factbox: Key facts o
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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
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299 Images of ‘‘Jing-Jing’’
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301 Legislation was introduced duri
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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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315 90. U.S.-China Economic and Sec
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318 China’s prison labor system,
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320 most literal sense, the term la
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322 treatment of Falun Gong practit
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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
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330 complaints involving internatio
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RECOMMENDATIONS • The Commission
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334 28. U.S. Department of Homeland
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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
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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
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355 In each Section and Subsection
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357 ecutive Schedule under section
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360 member of the Academic Advisory
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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
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APPENDIX III PUBLIC HEARINGS OF THE
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373 May 20, 2008: Public Hearing on
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APPENDIX IIIA LIST OF WITNESSES TES
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377 Alphabetical Listing of Panelis
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379 Alphabetical Listing of Panelis
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382 REPUBLIC OF KOREA, JAPAN AND TA
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APPENDIX V LIST OF U.S. SANCTIONS I
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387 Date Imposed Entity/Person Cont
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APPENDIX VII ABBREVIATIONS AND ACRO
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393 UNGA UN PKO USD USDA USITC USTR
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