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2006 Annual Report Contents

Annual Reports

2006 REPORT TO CONGRESS OF THE U.S.-CHINA ECONOMIC AND SECURITY REVIEW COMMISSION

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DEDICATION OF THIS REPORT TO COMMISSIONER GEORGE BECKER

 

TRANSMITTAL LETTER TO THE CONGRESS

iii

COMMISSIONERS APPROVING THE REPORT

vii

TABLE OF CONTENTS

EXECUTIVE SUMMARY

1

KEY RECOMMENDATIONS TO CONGRESS

14

INTRODUCTION

19

 

 

 

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

25

Overview

25

1.

The Status of China’s Compliance with its World Trade Organization Obligations and the Impact of China’s Industrial Subsidies on U.S. and Other Markets

27

2.

China’s Approach to Intellectual Property Rights and its Production of
Counterfeit Goods

32

3.

China’s Financial System and Monetary Policies and their Effects on
the United States

45

Recommendations to Congress

55

 

 

 

Chapter 2: China’s Global and Regional Activities and Other Geostrategic Developments

65

1.

China’s Regional Activities

65

2.

China’s Proliferation and Involvement in North Korea’s and Iran’s
Nuclearization Activities

82

3.

China’s Energy Needs and Strategies

95

Recommendations to Congress

108

     

Chapter 3: China’s Military Power and its Effects on American Interestsand Regional Security

127

1.

China’s Military Modernization

127

2.

The Effect of U.S. and Multilateral Export Controls on China’s Military
Modernization

139

3.

The Military Balance Across the Taiwan Strait

145

Recommendations to Congress

153

 

 

 

Chapter 4: A Case Study of the Automotive Industry that Illustrates Challenges to U.S. Manufacturing and the U.S. Defense Industrial Base

167

Recommendations to Congress

179

 

 

 

Chapter 5: China’s Internal Problems, Beijing’s Response, and Implications for the United States

183

Recommendations to Congress

193

 

 

 

Chapter 6: China’s Media and Information Controls

199

Recommendations to Congress

202

 

 

 

Comprehensive List of the Commission’s Recommendations

205

Commission’s Recommendations

205

Additional Views of Commissioners

212

   

Appendices:

 

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

219

Appendix II: Background on Commissioners

227

Appendix III: Public Hearings of the Commission

239

Appendix IV: List of Witnesses Who Testified at Commission Public Hearings

243

Appendix V: List of Research Material

249

Appendix VI: Abbreviations

251

Appendix VII: Excerpts from U.S. Department of State Report Adherence to and Compliance with Arms Control, Nonproliferation, and Disarmament Agreements and Commitments

255

 

 

 

Commission Staff and Acknowledgements

265