US-China Commission Report - Fatal System Error

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314 69. Anne-Marie Brady, Marketing Dictatorship: Propaganda and Thought Work in Contemporary China (Rowman & Littlefield Publishing Group, Lanham, MD: 2008), p. 99. 70. Jiao Guobiao, ‘‘Declaration of the Campaign Against the Central Propaganda Department,’’ section 1. http://www.asiamedia.ucla.edu/article.aspparentid=17014. 71. One of the clearest examples of this may be found in the Web site www.anticnn.com, which apparently was spontaneously organized by private Chinese citizens but with clear government endorsement. 72. David Barboza, ‘‘China Contends It Has Evidence of Tibet Riot Plot,’’ International Herald Tribune, March 31, 2008. 73. As one example, see the articles on the Chinese government-sponsored Web page ‘‘Tibet: Its Past and Present.’’ http://www.chinaview.cn/08lhasa. 74. Congressional-Executive Commission on China, ‘‘Communications Disruptions in Tibetan Areas Impede Flow of Information,’’ May 19, 2008. http://www.cecc.gov/ pages/virtualAcad/index.phpdPHPSESSID=880ff4242af93273b289d221a63b34a5#id 104837. 75. U.S.-China Economic and Security Review Commission, Hearing on Access to Information and Media Control in the People’s Republic of China, testimony of Peter Gries and Perry Link, June 18, 2008. 76. ‘‘Friedman: Chinese Believe Tibetans, Other Ethnic Groups Should Be Incorporated Into One China,’’ Council on Foreign Relations, online article. www.cfr.org/ publication/16052. 77. Yuan Peng, ‘‘Pairs of Relationships that China’s Geostrategy Should Consider,’’ Xiandai Guoji Guanxi, May 20, 2008. Translated in Open Source Center document CPP20080722508002. 78. ‘‘Double Act, Old Trick Behind Tibet Chaos,’’ China View (English-language outlet of Xinhua), April 18, 2008. http://news.xinhuanet.com/english/2008–04/18/contentl7999101.htm. 79. ‘‘Is the Financial Crisis an American Conspiracy’’ Global Times [Huanqiu Shibao], October 19, 2008. http://www.otliba.com/showlnews.aspID=40. 80. U.S.-China Economic and Security Review Commission, Hearing on Access to Information and Media Control in the People’s Republic of China, testimony of Perry Link, June 18, 2008. 81. World Trade Organization Dispute #DS373, ‘‘China—Measures Affecting Financial Information Services and Foreign Financial Information Suppliers’’ (U.S. complaint dated March 3, 2008). http://www.wto.org/english/tratople/dispule/cases le/ds373le.htm. 82. World Trade Organization Dispute #DS372, ‘‘China—Measures Affecting Financial Information Services and Foreign Financial Information Suppliers’’ (European Community, complaint dated March 3, 2008). http://www.wto.org/english/ tratople/dispule/casesle/ds372le.htm; World Trade Organization Dispute #DS373, ‘‘China—Measures Affecting Financial Information Services and Foreign Financial Information Suppliers’’ (U.S. complaint dated March 3, 2008). http:// www.wto.org/english/tratople/dispule/casesle/ds373le.htm; World Trade Organization Dispute #DS378, ‘‘China—Measures Affecting Financial Information Services and Foreign Financial Information Suppliers’’ (Canadian complaint dated June 20, 2008). http://www.wto.org/english/tratople/dispule/casesle/ds378le.htm. 83. Steven R. Weisman, ‘‘U.S. and E.U. File Trade Complaint Against China’’ and ‘‘China Will Follow WTO Rules on Financial News Access,’’ International Herald Tribune, March 3 and 4, 2008. 84. U.S.-China Economic and Security Review Commission, Hearing on Access to Information and Media Control in the People’s Republic of China, written testimony of Gilbert Kaplan, June 18, 2008. 85. Kevin Dempsey, Esq., telephone interview with Commission staff, August 6, 2008. 86. Eric Bangeman, ‘‘EU May Begin Treating Net Censorship as a Trade Barrier,’’ Ars Technica, February 27, 2008. http://arstechnica.com/news.ars/post/ 20080227-eu-may-begin-treating-net-censorship-as-a-trade-barrier.html. 87. Nick Rahaim, ‘‘Using Free Trade to Force China to Permit More Free Speech,’’ online commentary of the CFAC (California First Amendment Coalition), March 18, 2008. http://www.cfac.org/content/index.php/cfac-news/commentary23. 88. Elizabeth Economy and Michael Levi, ‘‘Help U.S. Firms Free China’s Web,’’ International Herald Tribune, April 19, 2008. 89. U.S.-China Economic and Security Review Commission, Hearing on Access to Information and Media Control in the People’s Republic of China, testimony of Gilbert Kaplan, June 18, 2008.
315 90. U.S.-China Economic and Security Review Commission, Hearing on Access to Information and Media Control in the People’s Republic of China, written testimony of Gilbert Kaplan, June 18, 2008. 91. James Politi and Richard Waters, ‘‘Google and Yahoo Tread Carefully in Beijing Row,’’ Financial Times, August 21 2008. 92. U.S. Senate Judiciary Committee, Subcommittee on Human Rights and the Law, ‘‘Global Internet Freedom: Corporate Responsibility and the Rule of Law,’’ testimony by industry representatives, May 20, 2008. 93. The letters were obtained by the Los Angeles Times and posted online. They are available at Google letter: http://latimesblogs.latimes.com/technology/files/Google CodeLetter2.pdf; Yahoo! letter: http://latimesblogs.latimes.com/technology/files/Yahoo CodeLetter1.pdf; Microsoft letter: http://latimesblogs.latimes.com/technology/files/MicrosoftCodeLetter2.pdf. 94. James Politi and Richard Waters, ‘‘Google and Yahoo Tread Carefully in Beijing Row,’’ Financial Times, August 21, 2008. 95. Kevin Dempsey, Esq., telephone interview with Commission staff, August 6, 2008; and research performed by Commission staff based on China’s WTO accession documents. The list of China’s WTO accession documents may be found at http:// www. wto.org/english/thewtole/accle/completeaccle.htm#chn. 96. Kevin Dempsey, Esq., telephone interview with Commission staff, August 6, 2008. 97. General Agreement on Trade in Services, articles XIV and XIV bis, pp. 294– 295. http://www.wto.org/english/docsle/legalle/26-gats.pdf. 98. These articles, however, are still subject to the ‘‘national treatment’’ clause, meaning that if applied, they must apply to both foreign and domestic firms. As an example, Mr. Dempsey cited a 2005 WTO appellate body ruling, in which U.S. prohibitions against Internet gambling services were challenged. The United States had invoked the public morals clause of GATS, but Antigua (where many online casinos are based) challenged the U.S. position on the grounds that Internet betting on horse racing was still legal in some states within the United States. The WTO appellate body found in Antigua’s favor, on the grounds that allowing U.S. domestic firms to manage Internet betting, while simultaneously prohibiting foreign-managed Internet gambling services, violated the national treatment principle.
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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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
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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
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 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: 313 image-of-internet-police-jingji
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
Page 349 and 350: 339 gram. By expanding this volunta
Page 351 and 352: 341 27. The Commission recommends t
Page 353 and 354: 343 43. The Commission recommends t
Page 355 and 356: 345 ADDITIONAL VIEWS OF COMMISSIONE
Page 357 and 358: 347 ADDITIONAL VIEWS OF COMMISSIONE
Page 359 and 360: APPENDIX I UNITED STATES-CHINA ECON
Page 361 and 362: 351 (iii) make all subsequent appoi
Page 363 and 364: 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
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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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