US-China Commission Report - Fatal System Error

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2008 REPORT TO CONGRESS of the U.S.-CHINA ECONOMIC AND SECURITY REVIEW COMMISSION ONE HUNDRED TENTH CONGRESS SECOND SESSION NOVEMBER 2008 Printed for the use of the U.S.-China Economic and Security Review Commission Available via the World Wide Web: http://www.uscc.gov
1 2008 REPORT TO CONGRESS of the U.S.-CHINA ECONOMIC AND SECURITY REVIEW COMMISSION ONE HUNDRED TENTH CONGRESS SECOND SESSION NOVEMBER 2008 Printed for the use of the U.S.-China Economic and Security Review Commission Available via the World Wide Web: http://www.uscc.gov U.S. GOVERNMENT PRINTING OFFICE WASHINGTON : 2008 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001
Page 1: USCC 2008 ANNUAL REPORT
Page 5 and 6: U.S.-CHINA ECONOMIC AND SECURITY RE
Page 8 and 9: CONTENTS Page TRANSMITTAL LETTER TO
Page 10 and 11: INDEX OF TABLES AND FIGURES 2008 RE
Page 12 and 13: 2 economic, security, diplomatic, a
Page 14 and 15: 4 China’s Capital Investment Vehi
Page 16 and 17: 6 • Antidumping penalties imposed
Page 18 and 19: 8 rities of other nations and cause
Page 20 and 21: 10 Conclusions China’s Current En
Page 22 and 23: 12 other countries that rely on Chi
Page 24 and 25: 14 vein, there appears to be a stro
Page 26 and 27: 16 lator of all financial services
Page 28 and 29: 18 • Identifying substandard ship
Page 30 and 31: 20 During the year, China continued
Page 32 and 33: 22 U.S. inspections of prisons to e
Page 34 and 35: 24 to the uncertainty during the su
Page 36 and 37: 26 U.S. exports to China were 20 pe
Page 38 and 39: 28 currency for RMB to obtain forei
Page 40 and 41: 30 of supply and demand in the fore
Page 42 and 43: 32 troversial is whether the treaty
Page 44 and 45: 34 erty (IP) rights holders from en
Page 46 and 47: 36 New Currency Rules China’s und
Page 48 and 49: 38 brought in 2006 by the United St
Page 50 and 51: 40 sectoral talks on farm trade. In
Page 52 and 53:
42 tinue buying foreign exchange, t
Page 54 and 55:
44 difference between temporary, th
Page 56 and 57:
46 The Administrative Structure and
Page 58 and 59:
48 U.S. dollar and has appreciated
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50 Development Committee and other
Page 62 and 63:
52 drawn some fairly conventional l
Page 64 and 65:
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
Page 84 and 85:
74 tios—two of Asia’s technolog
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76 The last time the United States
Page 88 and 89:
78 pendent players. However, this m
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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
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RECOMMENDATIONS The U.S.-China Trad
Page 115 and 116:
105 gress could enable consumers to
Page 117 and 118:
107 26. ‘‘China Central Bank to
Page 119 and 120:
109 82. USTR, ‘‘2008 National T
Page 121 and 122:
111 121. U.S.-China Economic and Se
Page 123 and 124:
113 173. ‘‘China’s Stake in B
Page 125 and 126:
Page 127 and 128:
117 282. International Working Grou
Page 129 and 130:
Page 131 and 132:
121 361. Food & Water Watch, ‘‘
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123 Louisiana and the U.S. Gulf Coa
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126 While witnesses concluded that
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128 China’s Nonproliferation Comm
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130 State during the interdiction o
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132 Northwest National Laboratory
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134 UN Security Council resolutions
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136 ployment, this change would inf
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138 ing Iran’s missile program on
Page 150 and 151:
SECTION 2: CHINA’S VIEWS OF SOVER
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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 184 and 185:
174 80. Janice E. Thomson, ‘‘St
Page 186 and 187:
176 112. Reinhard Drifte, ‘‘Jap
Page 188 and 189:
Page 190 and 191:
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
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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
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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:
Page 233 and 234:
223 tent.aspxdata=EmergingMktlconte
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225 13, 2008. These tools include s
Page 237 and 238:
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
Page 245 and 246:
235 China to help resolve them. 22
Page 247 and 248:
237 presenting itself as an accepta
Page 249 and 250:
239 China’s infrastructure invest
Page 251 and 252:
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
Page 257 and 258:
247 pendent of their legislatures a
Page 259 and 260:
249 diplomacy and in the internatio
Page 261 and 262:
SECTION 2: CHINA’S RELATIONSHIPS
Page 263 and 264:
PART 1: TAIWAN The Significance of
Page 265 and 266:
255 PRC pressure directed against T
Page 267 and 268:
257 this end. 150 (Additional infor
Page 269 and 270:
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
Page 281 and 282:
271 South Korean officials emphasiz
Page 283 and 284:
273 mount among the ROK’s diploma
Page 285 and 286:
275 Even after approving these grad
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277 exercising undue influence—be
Page 289 and 290:
RECOMMENDATIONS China’s Expanding
Page 291 and 292:
Page 293 and 294:
283 42. UN Conference on Trade and
Page 295 and 296:
Page 297 and 298:
287 134. Calculation performed by C
Page 299 and 300:
289 184. ‘‘Factbox: Key facts o
Page 301 and 302:
CHAPTER 5 CHINA’S MEDIA AND INFOR
Page 303 and 304:
293 The central role of the Propaga
Page 305 and 306:
295 thoritarian post-Soviet governm
Page 307 and 308:
297 Some of the measures taken by C
Page 309 and 310:
299 Images of ‘‘Jing-Jing’’
Page 311 and 312:
301 Legislation was introduced duri
Page 313 and 314:
303 In addition to promoting a powe
Page 315 and 316:
305 Chinese Government Restrictions
Page 317 and 318:
307 search engine and the servers s
Page 319 and 320:
309 media, the Internet, popular en
Page 321 and 322:
311 ENDNOTES FOR CHAPTER 5 1. David
Page 323 and 324:
313 image-of-internet-police-jingji
Page 325:
Page 328 and 329:
318 China’s prison labor system,
Page 330 and 331:
320 most literal sense, the term la
Page 332 and 333:
322 treatment of Falun Gong practit
Page 334 and 335:
324 lowing its signing. According t
Page 336 and 337:
326 granted just three of 18 prison
Page 338 and 339:
328 Mr. Marck, who is the partial o
Page 340 and 341:
330 complaints involving internatio
Page 342 and 343:
RECOMMENDATIONS • The Commission
Page 344 and 345:
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
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345 ADDITIONAL VIEWS OF COMMISSIONE
Page 357 and 358:
347 ADDITIONAL VIEWS OF COMMISSIONE
Page 359 and 360:
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
Page 370 and 371:
360 member of the Academic Advisory
Page 372 and 373:
362 nomic, defense, and foreign pol
Page 374 and 375:
364 formulated by the Committee suc
Page 376 and 377:
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
Page 383 and 384:
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
Page 395 and 396:
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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US-China Commission Report - Fatal System Error

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