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282 23. Yuan Peng, ‘‘PRC Scholar on ‘Harmonious World’ Concept Guiding China’s New Diplomacy,’’ Xiandai Guoji Guanxi, April 20, 2007. OSC ID: CPP200705114550 01. 24. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of Joshua Kurlantzick, March 18, 2008. 25. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of Edward A. Friedman, March 18, 2008. 26. ‘‘Full text of Jiang Zemin’s Report to 16 th Party Congress,’’ November 17, 2002. http://english.hanban.edu.cn/english/features/49007.htm. 27. Ministry of Commerce, People’s Republic of China (PRC), ‘‘Shanghai Put Forward a Basic Train of Thoughts and Development Target for ‘Going Out’ Strategy,’’ March 5, 2004. http://english1.mofcom.gov.cn/aarticle/newsrelease/commonnews/2004 03/20040300190896.html. 28. ‘‘Chinese official views overseas Chinese work,’’ Qiushi, September 22, 2007. BBC Monitoring Asia Pacific-Political. Nexis.com. 29. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of Joshua Kurlantzick, March 18, 2008; U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of Mauro De Lorenzo, March 18, 2008. 30. ‘‘Framework Agreement on Comprehensive Economic Cooperation Between the Association of Southeast Asian Nations and the People’s Republic of China,’’ October 6, 2003. www.worldtradelaw.net/fta/agreements/aseanchinafta.pdf. 31. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of Mohan Malik, March 18, 2008. 32. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of Mohan Malik, March 18, 2008. 33. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of Mohan Malik, March 18, 2008. 34. Philippe D. Rogers, ‘‘Dragon with a Heart of Darkness: Countering Chinese Influence in Africa,’’ Joint Forces Quarterly, Iss. 47, 4 th quarter 2007, 23–24. 35. In a speech at Renmin University in mid-2007, Shen Guofang implied that the term ‘‘strategic space’’ means a country’s ability to maneuver within the international system and to accomplish its diplomatic goals. He states, ‘‘Basically speaking, the great historical trend epitomized by globalization and the resultant institutional change bodes well for China’s peaceful development and has created for China even more strategic space and maneuvering room [emphasis added]. . . . Whether or not we can firmly grasp the strategic opportunity and extend it as much as possible will depend upon our ability to act preemptively and fully open up the strategic space afforded China by the change in the system.’’ Shen Guofang, ‘‘Shen Guofang Analyzes New Chinese Diplomacy,’’ Shijie Zhishi, July 1, 2007. OSC ID: CPP20070713508001. 36. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of Lawrence Grinter, March 18, 2008. 37. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of Lawrence Grinter, March 18, 2008; U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of Mauro De Lorenzo, March 18, 2008. 38. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of Mohan Malik, March 18, 2008. 39. ‘‘China keen to negotiate free trade agreement,’’ Xinhua, July 4, 2008, BBC Monitoring Asia Pacific-Political. Nexis.com; ‘‘China and Costa Rica discuss about free trade agreement; Trade agreement with China,’’ La Nación, January 18, 2008, Nexis.com; Israel J. Ruiz, ‘‘Peru completes negotiation for free trade deal with China,’’ Living in Peru, October 17, 2008. http://www.livinginperu.com/news/7637. 40. Walden Bello, ‘‘China Eyes Africa: The New Imperialism’’ Multinational Monitor, Vol. 28, Iss. 1, January/February 2007, 23–24. 41. Hany Besada et al., ‘‘China’s Growing Economic Activity in Africa,’’ NBER Working Paper Series, No. 14024 (National Bureau of Economic Research, Cambridge, MA: May 2008), p. 3.
283 42. UN Conference on Trade and Development, ‘‘Country Fact Sheet: China,’’ World Investment Report 2007: Transnational Corporations, Extractive Industries and Development (New York: 2007); UN Conference on Trade and Development, ‘‘Country Fact Sheet: China,’’ World Investment Report 2008: Transnational Corporations and the Infrastructure Challenge. 43. UN Conference on Trade and Development, World Investment Report: Transnational Corporations, Extractive Industries and Development, p. 44. www.unctad.org/en/docs/wir2007p1len.pdf. 44. Hubei Province, Department of Commerce, ‘‘China’s First Overseas Trade and Economic Cooperation Zone Unveiled in Pakistan,’’ November 28, 2006. http:// english.hbdofcom.gov.cn/file/2006/11–28/105440.html; ‘‘Govt to help textile firms set up trade co-op zones overseas,’’ GOV.cn, March 28, 2006. http://english.gov.cn/2006– 03/28/contentl238177.htm. 45. Hubei Province, Department of Commerce, ‘‘China’s First Overseas Trade and Economic Cooperation Zone Unveiled in Pakistan,’’ November 28, 2006. http:// english.hbdofcom.gov.cn/file/2006/11–28/105440.html. 46. ‘‘China by the Numbers: Outbound Foreign Direct Investment,’’ China Market Intelligence, November 21, 2007. 47. ‘‘China by the Numbers: Outbound Foreign Direct Investment,’’ China Market Intelligence, November 21, 2007. 48. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of Lawrence Grinter, March 18, 2008. 49. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of Mauro DeLorenzo, March 18, 2008. 50. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of Mauro De Lorenzo, March 18, 2008. 51. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of Edward A. Friedman, March 18, 2008. 52. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of Thomas Christensen, March 18, 2008. 53. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of Thomas Christensen, March 18, 2008. 54. Zhang Qingmin, ‘‘PRC Scholar Discusses Differences in PRC Relations with Developing Nations,’’ Waijiao Pinglun, February 25, 2007. OSC ID: CPP20077033455001. 55. Yitzak Shichor, ‘‘China Means Business in Iraq,’’ China Brief, Vol. 7, Iss. 21, November 14, 2007. http://www.jamestown.org/chinalbrief/article.phparticleid=237 3787; Shai Oster, ‘‘Iraq to Seek Chinese Help To Reinvigorate Oil Industry,’’ Wall Street Journal, June 20, 2007. 56. Yitzak Shichor, ‘‘China Means Business in Iraq,’’ China Brief, Vol. 7, Iss. 21, November 14, 2007. http://www.jamestown.org/chinalbrief/article.phparticleid=237 3787. 57. ‘‘Iraq and China agree to $3 billion oil service deal,’’ Reuters, August 27, 2008. 58. As of September 2008. U.S. Department of State, ‘‘Background Note: Taiwan,’’ September 2008. http://www.state.gov/r/pa/ei/bgn/35855.htm. 59. ‘‘Taiwan says can’t match $6 bln China aid to Malawi,’’ Reuters, January 8, 2008. 60. ‘‘Cash Helped China Win Costa Rica’s Recognition,’’ New York Times, September 13, 2008. 61. Philippe D. Rogers, ‘‘Dragon with a Heart of Darkness: Countering Chinese Influence in Africa,’’ Joint Forces Quarterly, Iss. 47, 4th quarter 2007, p. 23. 62. Tamara Trihn, Silja Voss, and Stephen Dyck, ‘‘China Commodity Hunger: Implications for Africa and Latin America,’’ Deutsche Bank Research, June 13, 2006. pp. 13–14. http://www.dbresearch.com/PROD/DBRlINTERNETlEN–PROD/ PROD0000000000199956.pdf. 63. David Shinn, ‘‘The Scarcity of Oil Resources,’’ Conference by the Forum for American/Chinese Exchange at Stanford University, April 10, 2007. http:// www.gwu.edu/elliott/news/transcripts/shinn14.html. 64. Indira Campos and Alex Vines, ‘‘Angola and China: A Pragmatic Partnership,’’ Working Paper presented at a CSIS (Center for Strategic and International
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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, ‘‘
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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
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SECTION 2: CHINA’S VIEWS OF SOVER
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142 ficing the principle behind it.
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144 baseline. Other states enjoy ov
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146 India, Vietnam, Taiwan, and oth
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148 as, ‘‘What constitutes a sp
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150 The proposed PAROS treaty itsel
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152 enhance China’s assertions of
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154 Media and Public Opinion Warfar
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SECTION 3: THE NATURE AND EXTENT OF
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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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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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221 ENDNOTES FOR CHAPTER 3 1. U.S.-
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223 tent.aspxdata=EmergingMktlconte
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225 13, 2008. These tools include s
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229 ergy Group, Environmental Energ
Page 241 and 242: CHAPTER 4 CHINA’S FOREIGN ACTIVIT
Page 243 and 244: 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
Page 271 and 272: 261 ernment is committed to set ann
Page 273 and 274: 263 • Arms purchases from the Uni
Page 275 and 276: 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
Page 287 and 288: 277 exercising undue influence—be
Page 289 and 290: RECOMMENDATIONS China’s Expanding
Page 291: 281 ENDNOTES FOR CHAPTER 4 1. U.S.-
Page 295 and 296: 285 87. U.S.-China Economic and Sec
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: 315 90. U.S.-China Economic and Sec
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
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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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