US-China Commission Report - Fatal System Error

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374 July 16, 2008: Public Hearing on ‘‘Research and Development, Technological Advances in Key Industries, and Changing Trade Flows with China,’’ Washington, DC Commissioners present: Larry M. Wortzel, Ph.D., Chairman; Carolyn Bartholomew, Vice Chairman; Peter T.R. Brookes; Mark T. Esper, Ph.D.; Jeffrey L. Fiedler; Hon. Patrick A. Mulloy; Hon. William A. Reinsch; Hon. Dennis C. Shea (Hearing Co-Chair); Peter Videnieks; Michael R. Wessel (Hearing Co-Chair). Congressional Perspectives: Hon. Walter Jones, U.S. Representative from the state of North Carolina; Hon. Michael H. Michaud, U.S. Representative from the state of Maine; Hon. Debbie Stabenow, U.S. Senator from the state of Michigan. Witnesses: Mary Amiti, Ph.D., Federal Reserve Bank of New York; Owen Herrnstadt, International Association of Machinists and Aerospace Workers, AFL–CIO; Kent Hughes, Ph.D., Woodrow Wilson Center; Charles W. McMillion, Ph.D., MBG Information Services; Ernest H. Preeg, Ph.D., The Manufacturers Alliance/ MAPI; Tom (Qingjiu) Tao, Ph.D., Lehigh University; Kathleen Walsh, U.S. Naval War College. August 13, 2008: Public Hearing on ‘‘China’s Energy Policies and Their Environmental Impacts,’’ Washington, DC 2 Commissioners present: Larry M. Wortzel, Ph.D., Chairman; Carolyn Bartholomew, Vice Chairman; Mark T. Esper, Ph.D.; Jeffrey L. Fiedler; Hon. Patrick A. Mulloy Hon. William A. Reinsch (Hearing Co-Chair); Hon. Dennis C. Shea; Daniel M. Slane (Hearing Co-Chair); Peter Videnieks. Witnesses: Joseph Aldy, Ph.D., Harvard Project on International Climate Agreements and Fellow, Resources for the Future; Edward A Cunningham, Massachusetts Institute of Technology; Erica Downs, Ph.D., The Brookings Institution; Katharine Fredriksen, U.S. Department of Energy; Scott Fulton, U.S. Environmental Protection Agency; Dan Jaffe, University of Washington-Bothell; Andrew C. Kadak, Massachusetts Institute of Technology; Mark Levine, Ph.D., Lawrence Berkeley National Laboratory; Joanna I. Lewis, Ph.D., Pew Center on Global Climate Change; Stephen Mladineo, Pacific Northwest National Laboratory; Jonathan Schwartz, Ph.D., State University of New York at New Paltz. 2 Additional Material Supplied for the Record, Statement by the American Iron and Steel Institute, Steel Manufacturers Association.
APPENDIX IIIA LIST OF WITNESSES TESTIFYING BEFORE THE COMMISSION 2008 Hearings Full transcripts and written testimonies are available online at the Commission’s Website: www.uscc.gov. Alphabetical Listing of Panelists Testifying before USCC Panelist Name Panelist Affiliation USCC Hearing Aldy, Joseph Amiti, Mary Bayh, Evan Brown, Sherrod Harvard Project on International Climate Agreements and Fellow, Resources for the Future Federal Reserve Bank of New York U.S. Senator from the state of Indiana U.S. Senator from the state of Ohio (375) August 13, 2008 July 16, 2008 February 7, 2008 February 7, 2008 Carlson, Allen R. Cornell University February 27, 2008 Chauvin, Kim Mariah Jade Shrimp Company April 24–25, 2008 Christensen, Thomas J. Cunningham, Edward A. Bureau of East Asian and Pacific Affairs Massachusetts Institute of Technology March 18, 2008 August 13, 2008 Curtis, Lisa The Heritage Foundation March 18, 2008 Dallara, Charles The Institute of International Finance February 7, 2008 De Lorenzo, Mauro American Enterprise Institute March 18, 2008 Deibert, Ronald J. Open Net Initiative June 18, 2008 Dohner, Robert U.S. Department of the Treasury February 7, 2008 Downs, Erica The Brookings Institution August 13, 2008 Dreyer, June Teufel University of Miami School of Business Administration February 27, 2008
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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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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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283 42. UN Conference on Trade and
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287 134. Calculation performed by C
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289 184. ‘‘Factbox: Key facts o
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CHAPTER 5 CHINA’S MEDIA AND INFOR
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293 The central role of the Propaga
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295 thoritarian post-Soviet governm
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297 Some of the measures taken by C
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299 Images of ‘‘Jing-Jing’’
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301 Legislation was introduced duri
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303 In addition to promoting a powe
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305 Chinese Government Restrictions
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307 search engine and the servers s
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309 media, the Internet, popular en
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311 ENDNOTES FOR CHAPTER 5 1. David
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313 image-of-internet-police-jingji
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318 China’s prison labor system,
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320 most literal sense, the term la
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322 treatment of Falun Gong practit
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Page 342 and 343: RECOMMENDATIONS • The Commission
Page 344 and 345: 334 28. U.S. Department of Homeland
Page 347 and 348: COMPREHENSIVE LIST OF THE COMMISSIO
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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: 373 May 20, 2008: Public Hearing on
Page 387 and 388: 377 Alphabetical Listing of Panelis
Page 389: 379 Alphabetical Listing of Panelis
Page 392 and 393: 382 REPUBLIC OF KOREA, JAPAN AND TA
Page 395 and 396: APPENDIX V LIST OF U.S. SANCTIONS I
Page 397: 387 Date Imposed Entity/Person Cont
Page 401 and 402: APPENDIX VII ABBREVIATIONS AND ACRO
Page 403: 393 UNGA UN PKO USD USDA USITC USTR
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