Annual Reports

2005 REPORT TO CONGRESS OF THE U.S.-CHINA ECONOMIC AND SECURITY REVIEW COMMISSION

TRANSMITTAL LETTER TO THE CONGRESS

iii

COMMISSIONERS APPROVING THE REPORT

vii

EXECUTIVE SUMMARY

1

KEY RECOMMENDATIONS TO CONGRESS

14

INTRODUCTION

19

Chapter 1: U.S.-China Trade and Economic Relationship

25

Introduction

25

1.

Impact of U.S.-China Trade and Investment on the U.S. Economy

27

2.

Assessing and Enforcing China’s Compliance with World Trade Organization
Commitments

45

3.

China’s Strategy and Objectives in Global Capital Markets

53

4.

China’s Role in a Globalized Economy and the U.S. Response

65

Recommendations

69

Chapter 2: China’s High-Technology Development and Implications for the U.S. Defense Industrial Base

85

Introduction

85

1.

China’s High-Technology Development

86

2.

Implications for the U.S. Defense Industrial Base

97

Recommendations

108

Chapter 3: China’s Military Power and America’s Interests

115

Introduction

115

1.

China’s Effort to Dominate the Asia Pacific Region and its Impact on U.S. Interests

117

2.

The Cross-Strait Political and Economic Relationship

129

Recommendations

134

Chapter 4: China’s Global and Regional Activities and Geostrategic Developments

143

Introduction

143

1.

China’s Regional Activities and Their Economic and Security Impacts

144

2.

China’s Proliferation Practices and Record

153

3.

China’s Involvement in Resolving the North Korean Nuclear Crisis

161

4.

China’s Energy Needs and Strategies

164

Recommendations

172

Chapter 5: China’s Media and Information Controls

191

Introduction

191

Recommendations

197

Comprehensive List of the Commission’s Recommendations

201

Commission’s Recommendations

201

Additional Views of Commissioners

215

Appendices:

Appendix I: U.S.-China Economic and Security Review Commission Charter

221

Appendix II: Background on Commissioners

229

Appendix III: Public Hearings of the Commission

241

Appendix IV: List of Research Material

255

Appendix V: Abbreviations

259

Commission Staff and Acknowledgements

263