US-China Commission Report - Fatal System Error

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334 28. U.S. Department of Homeland Security, Annual Report of the Task Force on the Prohibition of Importation of Products of Forced or Prison Labor from the People’s Republic of China (Washington, DC: 2005). 29. U.S.-China Economic and Security Review Commission, Hearing on the Memorandum of Agreement Between the United States and China Regarding Prison Labor Products, testimony of James Ink, June 19, 2008. 30. The Laogai Research Foundation, Laogai Handbook 2005–2006, pp. 481–483. http://www.laogai.org/news2/book/handbook05–06.pdf. 31. The Laogai Research Foundation, Laogai Handbook 2005–2006, p. 484. http:// www.laogai.org/news2/book/handbook05–06.pdf. 32. Dun & Bradstreet is a publicly traded company based in New Jersey; its database, available on a subscription basis, allows companies to gather basic information and perform credit checks upon one another before entering into business deals. 33. The Laogai Research Foundation, Laogai Forced Labor Camps Listed in Dun & Bradstreet Databases (June 19, 2008). http://www.laogai.org/news/doc/Laogai- D&B-Report.pdf. 34. Congressional-Executive Commission on China, Roundtable on Forced Labor in China, testimony of researcher on the treatment of Falun Gong members in China Gregory Xu, June 22, 2005. 35. AMEMBASSY Beijing diplomatic cable, ‘‘China: Report on Forced and Child Labor in the Production of Goods,’’ May 20, 2008. (Message DTG 200739Z MAY 08, UNCLASSIFIED). 36. Calculation based off of exchange rate of 6.8171 RMB (renminbi) to 1 U.S. dollar. Calculated October 7, 2008, at the currency exchange rate Web site www.xrates.com. 37. ‘‘Henan Rebecca Hair Products, Inc. in Henan Province Uses Slave Labor in Forced Labour Camps,’’ Web posting by ‘‘Clear Harmony,’’ a Falun Gong organization in Europe. http://www.clearharmony.net/articles/200401/16978.html. 38. Tariff Act of 1930, U.S.C. 19 § 1307. 39. ‘‘Trade and Labour Standards: A Difficult Issue for Many WTO Member Governments.’’ http://www.wto.org/english/thewtole/ministle/min01le/briefle/brief16 le.htm. 40. Background information about Prison Blues and its products may be found on the company’s Web site http://www.prisonblues.com/411.php. 41. ‘‘Memorandum of Understanding Between the United States of America and the People’s Republic of China on Prohibiting Import and Export Trade in Prison Labor,’’ August 7, 1992. http://www.laogai.org/news/newsdetail.phpid=2949. 42. U.S. Senate Committee on Foreign Relations, Hearing on U.S. Implementation of Prison Labor Agreements with China, testimony of Deputy Assistant Secretary of State for East Asian and Pacific Affairs Jeffrey Bader, May 21, 1997. http://www.laogai.org/news/newsdetail.phpid=1910. 43. ‘‘Statement of Cooperation on the Implementation of the Memorandum of Understanding Between the United States of America and the People’s Republic of China on Prohibiting Import and Export Trade in Prison Labor Products,’’ March 13, 1994. 44. Judy Rogers, acting director of ICE’s Office of Congressional Relations, letter to Commissioner Jeffrey Fiedler of the U.S.-China Economic and Security Review Commission, August 2, 2007. 45. Judy Rogers, acting director of ICE’s Office of Congressional Relations, letter to Commissioner Jeffrey Fiedler of the U.S.-China Economic and Security Review Commission, August 2, 2007. 46. Judy Rogers, acting director of ICE’s Office of Congressional Relations, letter to Commissioner Jeffrey Fiedler of the U.S.-China Economic and Security Review Commission, August 2, 2007. 47. U.S. Department of Homeland Security, Annual Report of the Task Force on the Prohibition of Importation of Products of Forced or Prison Labor from the People’s Republic of China (Washington, DC: 2005). 48. U.S. Department of Homeland Security, Annual Report of the Task Force on the Prohibition of Importation of Products of Forced or Prison Labor from the People’s Republic of China (Washington, DC: 2005), p. 7. 49. U.S.-China Economic and Security Review Commission, Hearing on the Memorandum of Agreement Between the United States and China Regarding Prison Labor Products, testimony of James Ink, June 19, 2008. 50. Congressional-Executive Commission on China, Roundtable on Forced Labor in China, testimony of The Laogai Research Foundation’s Executive Director Harry Wu, June 22, 2005. 51. U.S. Senate Committee on Foreign Relations, Hearing on U.S. Implementation of Prison Labor Agreements with China, testimony of Deputy Assistant Sec-
335 retary of State for East Asian and Pacific Affairs Jeffrey Bader, May 21, 1997. http://www.laogai.org/news/newsdetail.phpid=1910. 52. U.S.-China Economic and Security Review Commission, Hearing on the Memorandum of Agreement Between the United States and China Regarding Prison Labor Products, testimony of James Ink, June 19, 2008. 53. Daniel Ellis, attorney for Gary Marck, and Emily Wilcheck, attorney for James Peng, telephone conversations with Commission staff, July 17–18, 2008. 54. The Laogai Research Foundation, Laogai Handbook 2005–2006, p. 311. http:// www.laogai.org/news2/book/handbook05–06.pdf. 55. Edmund Maciorowski, written submission to the U.S. International Trade Commission in regard to Investigation #332–491, China: Government Policies Affecting U.S. Trade in Selected Sectors, February 1, 2008. 56. U.S.-China Economic and Security Review Commission, Hearing on the Memorandum of Agreement Between the United States and China Regarding Prison Labor Products, testimony of Gary Marck, June 19, 2008. 57. Daniel Ellis, attorney for Gary Marck, telephone conversation with Commission staff, July 17, 2008. 58. U.S.-China Economic and Security Review Commission, Hearing on the Memorandum of Agreement Between the United States and China Regarding Prison Labor Products, testimony of Gary Marck, June 19, 2008. 59. U.S.-China Economic and Security Review Commission, Hearing on the Memorandum of Agreement Between the United States and China Regarding Prison Labor Products, testimony of Daniel Ellis, June 19, 2008. 60. U.S.-China Economic and Security Review Commission, Hearing on the Memorandum of Agreement Between the United States and China Regarding Prison Labor Products, testimony of Daniel Ellis, June 19, 2008. 61. Daniel Ellis, attorney for Gary Marck, telephone conversation with Commission staff, July 17, 2008. 62. Emily Wilcheck, legal counsel for James Peng, letter to Larry Wortzel, chairman of the U.S.-China Economic and Security Review Commission, July 15, 2008. 63. Daniel Ellis, attorney for Gary Marck, and Emily Wilcheck, attorney for James Peng, telephone conversations with Commission staff, July 17–18, 2008. 64. This subsequent communication consists primarily of a phone conversation between Commission staff and Mr. Ellis, July 17, 2008. 65. Emily Wilcheck, legal counsel for James Peng, letter to Larry Wortzel, chairman of the U.S.-China Economic and Security Review Commission, July 15, 2008; and phone conversation between Commission staff and Ms. Wilcheck, July 18, 2008. 66. Judy Rogers, acting director of ICE’s Office of Congressional Relations, letter to Commissioner Jeffrey Fiedler of the U.S.-China Economic and Security Review Commission, August 2, 2007. 67. Emily Wilcheck, legal counsel for James Peng, letter to Larry Wortzel, chairman of the U.S.-China Economic and Security Review Commission, July 15, 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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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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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 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 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
Page 374 and 375: 364 formulated by the Committee suc
Page 376 and 377: 366 Commissioner Shea is an attorne
Page 378 and 379: 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
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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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