US-China Commission Report - Fatal System Error

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286 110. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of Lisa Curtis, March 18, 2008. 111. U.S.-China Economic and Security Review Commission, Hearing on China’s Energy Consumption and Opportunities for U.S.-China Cooperation to Address the Effects of China’s Energy Use, testimony of James Holmes, June 14, 2008. 112. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of David Sedney, March 18, 2008. 113. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of David Sedney, March 18, 2008. 114. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of David Sedney, March 18, 2008. 115. Levi Tillemann, ‘‘Blowback from Zimbabwe: China’s Faltering Strategy and Arms Exports,’’ China Brief, vol. 8, iss. 13, June 18, 2008. http://www.jamestown.org/ chinalbrief/article.phparticleid=2374251. 116. Levi Tillemann, ‘‘Blowback from Zimbabwe: China’s Faltering Strategy and Arms Exports,’’ China Brief, vol. 8, iss. 13, June 18, 2008. http://www.jamestown.org/ chinalbrief/article.phparticleid=2374251. 117. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of David Sedney, March 18, 2008. 118. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of Cynthia Watson, March 18, 2008. 119. 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. 120. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of David Sedney, March 18, 2008. 121. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of David Sedney, March 18, 2008. 122. 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. 123. U.S.-China Economic and Security Review Commission, Hearing on China’s Expanding Global Influence: Foreign Policy Goals, Practices, and Tools, testimony of David Sedney, March 18, 2008. 124. 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. 125. 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. 126. 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. 127. 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. 128. U.S. Department of Defense, Quadrennial Defense Review Report (Washington, DC: February 2006), p. 78. 129. U.S. Forces Japan, ‘‘The History of U.S. Forces Japan.’’ http://www.usfj.mil/ USFJlHistory/USFJlHistory.html. 130. Gerry J. Gilmore, ‘‘Bush: U.S.-South Korean Alliance Symbolizes ‘Belief in Liberty,’ ’’ American Forces Press Service, August 6, 2008. 131. Taiwan Relations Act, Public Law 96–8, 1979. 132. Calculation performed by Commission staff, based on tariff and trade data from the U.S. Department of Commerce and the U.S. International Trade Commission. 133. U.S. Census Bureau, Foreign Trade Division, Trade in Goods (Imports, Exports and Trade Balance) with Taiwan—2008. http://www.census.gov/foreign-trade/ balance/c5830.html.
287 134. Calculation performed by Commission staff, based on tariff and trade data from the U.S. Department of Commerce, U.S. Census Bureau, Foreign Trade Division, Trade in Goods (Imports, Exports and Trade Balance) with Taiwan—2008 and Trade in Goods (Imports, Exports and Trade Balance) with China—2008. Figures based on an approximate population of 23 million for Taiwan and 1.3 billion for mainland China. 135. Text of the Taiwan Relations Act (Public Law 96–8), January 1, 1979. http:// www.ait.org.tw/en/aboutlait/tra. 136. Text of H.Res 676. http://www.govtrack.us/congress/bill.xpdbill=hr110–676. 137. Su Chi, secretary general of Taiwan’s National Security Council, discussions with Commissioners, Taipei, August 2008. 138. Text of the PRC’s 2005 Anti-Secession Law. http://news.bbc.co.uk/2/hi/asiapacific/4347555.stm. 139. See, as one such example: Brian Knowlton, ‘‘Bush Warns Taiwan to Keep Status Quo: China Welcomes U.S. Stance,’’ International Herald Tribune, December 10, 2003. 140. U.S. Department of State, country information page for the People’s Republic of China, updated April 2008. http://www.state.gov/outofdate/bgn/c/95057.htm. 141. U.S. House of Representatives, International Relations Committee, Hearing on People’s Republic of China Anti-Secession Legislation,testimony of Deputy Assistant Secretary of State for East Asian and Pacific Affairs Randall G. Schriver, April 6, 2005. 142. Thomas Christensen, Deputy Assistant Secretary of State for East Asian and Pacific Affairs, ‘‘A Strong and Moderate Taiwan,’’ speech given before the U.S.-Taiwan Business Council, Annapolis, MD, September 11, 2007. http://us-taiwan.org/reports/2007lsept11lthomaslchristensenlspeech.pdf. 143. Graham Bowley, ‘‘Cash Helped Win Costa Rica’s Recognition,’’ New York Times, September 13, 2008. 144. Eugence Chien, ‘‘Beyond SARS: Give Taiwan WHO Status,’’ International Herald Tribune, May 16, 2003. 145. As one such example, see ‘‘Statement on Taiwan’s Meaningful Participation in UN Specialized Agencies,’’ press release from the U.S. Mission to the United Nations, September 17, 2008. http://www.usunnewyork.usmission.gov/presslreleases/ 20080917l239.html. 146. ‘‘EU Backs Taiwan for Special Fora,’’ China Post, September 21, 2008. http:// www.chinapost.com.tw/taiwan/foreign%20affairs/2008/09/21/175645/EU-backs.htm. 147. Jonathan Adams, ‘‘Flights Begin from China to Taiwan,’’ New York Times, July 4, 2008. 148. President Ma Ying-Jeou and other senior Taiwan officials, comments in discussions with Commissioners, Taipei, August 2008. 149. ‘‘China Rebukes Proposal on Taiwan’s Participation in UN Agencies,’’ Xinhua, August 28, 2008. http://www.chinadaily.com.cn/china/2008–08/28/contentl6978998.htm. 150. Multiple Korean and Japanese interlocutors, comments to Commissioners, August 2008. In the interest of confidentiality, these individuals will not be identified by name. 151. Taipei Times (pro-DPP, English language newspaper in Taiwan) graphic depicting outcome of the January 12, 2008, LY voting. http://www.taipeitimes.com/ News/front/photo/2008/01/13/2007114070. 152. Ambassador Harvey Feldman, comments at The Heritage Foundation event, ‘‘Taiwan’s Parliamentary Elections,’’ Washington, DC, January 15, 2008. 153. Republic of China Government Information Office, ‘‘March 22, 2008 Presidential Election and Referendums—Press Kit, Fact Sheet No. 6.’’ http://www.gio. gov.tw/elect2008/kitl06.htm. 154. As an example of Bush Administration responses, see: ‘‘Taiwan U.N. Membership Referendum Opposed by United States,’’ statement released by U.S. State Department, June 25, 2007. http://www.america.gov/st/washfile-english/2007/June/ 20070625135742zjsredna0.3750421.html; as an example of the the PRC response, see ‘‘China Welcomes Taiwan Referendum Failure,’’ Reuters, March 22, 2008. 155. Republic of China Government Information Office, ‘‘March 22, 2008 Presidential Election and Referendums—Press Kit, Fact Sheet No. 6.’’ http://www.glo. gov.tw/elect2008/kit-06.htm. 156. Tsai Ying-Wen, chairwoman of the DPP, comments to Commissioners, Taipei, August 2008. 157. U.S.-China Economic and Security Review Commission, 2007 Report to Congress, p. 219. 158. Shirley A. Kan, ‘‘Taiwan: Major U.S. Arms Sales Since 1990’’ (Congressional Research Service, Washington, DC: August 4, 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
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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
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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
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 and 292: 281 ENDNOTES FOR CHAPTER 4 1. U.S.-
Page 293 and 294: 283 42. UN Conference on Trade and
Page 295: 285 87. U.S.-China Economic and Sec
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
Page 342 and 343: RECOMMENDATIONS • The Commission
Page 344 and 345: 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
Page 385 and 386:
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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