United States-China Economic and Security Review Commission Charter
The Commission was created on October 30, 2000 by the Floyd D. Spence
National Defense Authorization Act for 2001 § 1238, Pub. L. No. 106-398,
114 STAT. 1654A-334 (2000) (codified at 22 U.S.C.§ 7002 (2001), as
amended by the Treasury and General Government Appropriations Act for
2002 § 645 (regarding employment status of staff) & § 648
(regarding changing annual report due date from March to June), Pub.L.
No. 107-67, 115 STAT. 514 (Nov. 12, 2001); as amended by Division P of
the "Consolidated Appropriations Resolution, 2003," Pub L. No.
108-7 (Feb. 20, 2003) (regarding Commission name change, terms of Commissioners,
and responsibilities of Commission). (click
here to view amendments) (a) Purposes. The purposes of this section are as follows: (1) To establish the United States-China Economic and Security Review
Commission to review the national security implications of trade and economic
ties between the United States and the People's Republic of China. (b) Establishment of United States-China Economic and Security Review
Commission. (1) In general. There is hereby established a commission to be known
as the United States-China Economic and Security Review Commission (in
this section referred to as the "Commission"). (3) Membership. The United States-China Economic and Security Review
Commission shall be composed of 12 members, who shall be appointed in
the same manner provided for the appointment of members of the Trade Deficit
Review Commission under section 127(c)(3) of the Trade Deficit Review
Commission Act (19 U.S.C. 2213 note), except that— (A) Appointment of members by the Speaker of the House of Representatives
shall be made after consultation with the chairman of the Committee on
Armed Services of the House of Representatives, in addition to consultation
with the chairman of the Committee on Ways and Means of the House of Representatives
provided for under clause (iii) of subparagraph (A) of that section; (B) Appointment of members by the President pro tempore of the Senate
upon the recommendation of the majority leader of the Senate shall be
made after consultation with the chairman of the Committee on Armed Services
of the Senate, in addition to consultation with the chairman of the Committee
on Finance of the Senate provided for under clause (i) of that subparagraph; (C) Appointment of members by the President pro tempore of the Senate
upon the recommendation of the minority leader of the Senate shall be
made after consultation with the ranking minority member of the Committee
on Armed Services of the Senate, in addition to consultation with the
ranking minority member of the Committee on Finance of the Senate provided
for under clause (ii) of that subparagraph; (D) Appointment of members by the minority leader of the House of Representatives
shall be made after consultation with the ranking minority member of the
Committee on Armed Services of the House of Representatives, in addition
to consultation with the ranking minority member of the Committee on Ways
and Means of the House of Representatives provided for under clause (iv)
of that subparagraph; (E) Persons appointed to the Commission shall have expertise in national
security matters and United States-China relations, in addition to the
expertise provided for under subparagraph (B)(i)(I) of that section; (F) Each appointing authority referred to under subparagraphs (A) through
(D) of this paragraph shall— (i) appoint 3 members to the Commission; (ii) make the appointments on a staggered term basis, such that—
(I) 1 appointment shall be for a term expiring on December 31, 2003;
(II) 1 appointment shall be for a term expiring on December 31, 2004;
and (III) 1 appointment shall be for a term expiring on December 31, 2005;
(iii) make all subsequent appointments on an approximate 2-year term
basis to expire on December 31 of the applicable year; and (iv) make appointments not later than 30 days after the date on which
each new Congress convenes. (G) Members of the Commission may be reappointed for additional terms
of service as members of the Commission; and (H) Members of the Trade Deficit Review Commission as of the date of
the enactment of this Act [enacted Oct. 30, 2000] shall serve as members
of the United States-China Economic and Security Review Commission until
such time as members are first appointed to the United States-China Economic
and Security Review Commission under this paragraph. (4) Retention of support. The United States-China Economic and Security
Review Commission shall retain and make use of such staff, materials,
and infrastructure (including leased premises) of the Trade Deficit Review
Commission as the United States-China Economic and Security Review Commission
determines, in the judgment of the members of the United States-China
Economic and Security Review Commission, are required to facilitate the
ready commencement of activities of the United States-China Economic and
Security Review Commission under subsection (c) or to carry out such activities
after the commencement of such activities. (5) Chairman and vice chairman. The members of the Commission shall select
a Chairman and Vice Chairman of the Commission from among the members
of the Commission. (6) Meetings. (A) Meetings. The Commission shall meet at the call of the Chairman of
the Commission. (B) Quorum. A majority of the members of the Commission shall constitute
a quorum for the transaction of business of the Commission. (7) Voting. Each member of the Commission shall be entitled to one vote,
which shall be equal to the vote of every other member of the Commission. (c) Duties. (1) Annual report. Not later than June 1 each year [beginning in 2002],
the Commission shall submit to Congress a report, in both unclassified
and classified form, regarding the national security implications and
impact of the bilateral trade and economic relationship between the United
States and the People's Republic of China. The report shall include a
full analysis, along with conclusions and recommendations for legislative
and administrative actions, if any, of the national security implications
for the United States of the trade and current balances with the People's
Republic of China in goods and services, financial transactions, and technology
transfers. The Commission shall also take into account patterns of trade
and transfers through third countries to the extent practicable. Contents of report. Each report under paragraph (1) shall include, at
a minimum, a full discussion of the following: (A) The portion of trade in goods and services with the United States
that the People's Republic of China dedicates to military systems or systems
of a dual nature that could be used for military purposes. (B) The acquisition by the People's Republic of China of advanced military
or dual-use technologies from the United States by trade (including procurement)
and other technology transfers, especially those transfers, if any, that
contribute to the proliferation of weapons of mass destruction or their
delivery systems, or that undermine international agreements or United
States laws with respect to nonproliferation. (C) Any transfers, other than those identified under subparagraph (B),
to the military systems of the People's Republic of China made by United
States firms and United States-based multinational corporations. (D) An analysis of the statements and writing of the People's Republic
of China officials and officially-sanctioned writings that bear on the
intentions, if any, of the Government of the People's Republic of China
regarding the pursuit of military competition with, and leverage over,
or cooperation with, the United States and the Asian allies of the United
States. (E) The military actions taken by the Government of the People's Republic
of China during the preceding year that bear on the national security
of the United States and the regional stability of the Asian allies of
the United States. (F) The effects, if any, on the national security interests of the United
States of the use by the People's Republic of China of financial transactions
and capital flow and currency manipulations. (G) Any action taken by the Government of the People's Republic of China
in the context of the World Trade Organization that is adverse or favorable
to the United States national security interests. (H) Patterns of trade and investment between the People's Republic of
China and its major trading partners, other than the United States, that
appear to be substantively different from trade and investment patterns
with the United States and whether the differences have any national security
implications for the United States. (I) The extent to which the trade surplus of the People's Republic of
China with the United States enhances the military budget of the People's
Republic of China. (J) An overall assessment of the state of the security challenges presented
by the People's Republic of China to the United States and whether the
security challenges are increasing or decreasing from previous years. (3) Recommendations of report. Each report under paragraph (1) shall
also include recommendations for action by Congress or the President,
or both, including specific recommendations for the United States to invoke
Article XXI (relating to security exceptions) of the General Agreement
on Tariffs and Trade 1994 with respect to the People's Republic of China,
as a result of any adverse impact on the national security interests of
the United States. (d) Hearings. (1) In general. The Commission or, at its direction, any panel or member
of the Commission, may for the purpose of carrying out the provisions
of this section, hold hearings, sit and act at times and places, take
testimony, receive evidence, and administer oaths to the extent that the
Commission or any panel or member considers advisable. (2) Information. The Commission may secure directly from the Department
of Defense, the Central Intelligence Agency, and any other Federal department
or agency information that the Commission considers necessary to enable
the Commission to carry out its duties under this section, except the
provision of intelligence information to the Commission shall be made
with due regard for the protection from unauthorized disclosure of classified
information relating to sensitive intelligence sources and methods or
other exceptionally sensitive matters, under procedures approved by the
Director of Central Intelligence. (3) Security. The Office of Senate Security shall— (A) provide classified storage and meeting and hearing spaces, when necessary,
for the Commission; and (B) assist members and staff of the Commission in obtaining security
clearances. (4) Security clearances. All members of the Commission and appropriate
staff shall be sworn and hold appropriate security clearances. (e) Commission personnel matters. (1) Compensation of members. Members of the United States-China Economic
and Security Review Commission shall be compensated in the same manner
provided for the compensation of members of the Trade Deficit Review Commission
under section 127(g)(1) and section 127(g)(6) of the Trade Deficit Review
Commission Act (19 U.S.C. 2213 note). (2) Travel expenses. Travel expenses of the United States-China Economic
and Security Review Commission shall be allowed in the same manner provided
for the allowance of the travel expenses of the Trade Deficit Review Commission
under section 127(g)(2) of the Trade Deficit Review Commission Act [19
USCS § 2213 note]. (3) Staff. An executive director and other additional personnel for the
United States-China Economic and Security Review Commission shall be appointed,
compensated, and terminated in the same manner provided for the appointment,
compensation, and termination of the executive director and other personnel
of the Trade Deficit Review Commission under section 127(g)(3) and section
127(g)(6) of the Trade Deficit Review Commission Act [19 USCS § 2213
note]. The executive director and any personnel who are employees of the
United States-China Economic and Security Review Commission shall be employees
under section 2105 of title 5, United States Code, for purposes of chapters
63, 81, 83, 84, 85, 87, 89, and 90 of that title [language of 2001 amendment,
Sec. 645]. (4) Detail of government employees. Federal Government employees may
be detailed to the United States-China Economic and Security Review Commission
in the same manner provided for the detail of Federal Government employees
to the Trade Deficit Review Commission under section 127(g)(4) of the
Trade Deficit Review Commission Act [19 USCS § 2213 note]. (5) Foreign travel for official purposes. Foreign travel for official
purposes by members and staff of the Commission may be authorized by either
the Chairman or the Vice Chairman of the Commission. (6) Procurement of temporary and intermittent services. The Chairman
of the United States-China Economic and Security Review Commission may
procure temporary and intermittent services for the United States-China
Economic and Security Review Commission in the same manner provided for
the procurement of temporary and intermittent services for the Trade Deficit
Review Commission under section 127(g)(5) of the Trade Deficit Review
Commission Act [19 USCS § 2213 note]. (f) Authorization of appropriations. (1) In general. There is authorized to be appropriated to the Commission
for fiscal year 2001, and for each fiscal year thereafter, such sums as
may be necessary to enable the Commission to carry out its functions under
this section. (2) Availability. Amounts appropriated to the Commission shall remain
available until expended. (g) Federal Advisory Committee Act. The provisions of the Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply to the Commission. (h) Effective date. This section shall take effect on the first day of
the 107th Congress. Amendments: SEC. 645. (a) Section 1238(e)(3) of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted by Public Law 106-398)
is amended by adding at the end the following: "The executive director
and any personnel who are employees of the United States-China Economic
and Security Review Commission shall be employees under section 2105 of
title 5, United States Code, for purposes of chapters 63, 81, 83, 84,
85, 87, 89, and 90 of that title." (b) The amendment made by this
section shall take effect on January 3, 2001." SEC. 648. DEADLINE FOR SUBMISSION OF ANNUAL REPORTS BY UNITED STATES-CHINA
ECONOMIC AND SECURITY REVIEW COMMISSION. Section 1238(c)(1) of the Floyd
D. Spence National Defense Authorization Act for Fiscal Year 2001 (as
enacted into law by section I of Public Law 106-398) is amended by striking
"March" and inserting "June". Changes: Enacted into law by Division P of the "Consolidated Appropriations
Resolution, 2003" Pub L 108-7 dated February 20, 2003: H. J. Res. 2— DIVISION P—UNITED STATES-CHINA ECONOMIC AND SECURITY REVIEW COMMISSION
SECTION 1. SHORT TITLE.—This division may be cited as the ‘‘United
States-China Economic and Security Review Commission’’. SEC. 2. (a) APPROPRIATIONS.—There are appropriated, out of any funds
in the Treasury not otherwise appropriated, $1,800,000, to remain available
until expended, to the United States-China Economic and Security Review
Commission. (b) NAME CHANGE.— (1) IN GENERAL.—Section 1238 of the Floyd D. Spence National Defense
Authorization Act of 2001 (22 U.S.C. 7002) is amended— as follows:
In each Section and Subsection where it appears, the name is changed
to the "U.S.-CHINA ECONOMIC AND SECURITY REVIEW COMMISSION"—
(2) REFERENCES.—Any reference in any Federal law, Executive order,
rule, regulation, or delegation of authority, or any document of or relating
to the United States-China Security Review Commission shall be deemed
to refer to the United States-China Economic and Security Review Commission.
(c) MEMBERSHIP, RESPONSIBILITIES, AND TERMS.— (1) IN GENERAL.—Section 1238(b)(3) of the Floyd D. Spence National
Defense Authorization Act of 2001 (22 U.S.C. 7002) is amended by striking
subparagraph (F) and inserting the following: ‘‘(F) each appointing authority referred to under subparagraphs
(A) through (D) of this paragraph shall— ‘‘(i) appoint 3 members to the Commission; ‘‘(ii) make the appointments on a staggered term basis, such
that— ‘‘(I) 1 appointment shall be for a term expiring on December
31, 2003; ‘‘(II) 1 appointment shall be for a term expiring on December
31, 2004; and ‘ ‘(III) 1 appointment shall be for a term expiring on December
31, 2005; ‘ ‘(iii) make all subsequent appointments on an approximate
2-year term basis to expire on December 31 of the applicable year; and
‘ ‘(iv) make appointments not later than 30 days after the
date on which each new Congress convenes;’’. (2) RESPONSIBILITIES OF THE COMMISSION.—The United States-China
Commission shall focus, in lieu of any other areas of work or study, on
the following: (A) PROLIFERATION PRACTICES.—The Commission shall analyze and assess
the Chinese role in the proliferation of weapons of mass destruction and
other weapons (including dual use technologies) to terrorist-sponsoring
states, and suggest possible steps which the United States might take,
including economic sanctions, to encourage the Chinese to stop such practices.
(B) ECONOMIC REFORMS AND UNITED STATES ECONOMIC TRANSFERS.—The Commission
shall analyze and assess the qualitative and quantitative nature of the
shift of United States production activities to China, including the relocation
of high-technology, manufacturing, and R&D facilities; the impact
of these transfers on United States national security, including political
influence by the Chinese Government over American firms, dependence of
the United States national security industrial base on Chinese imports,
the adequacy of United States export control laws, and the effect of these
transfers on United States economic security, employment, and the standard
of living of the American people; analyze China’s national budget
and assess China’s fiscal strength to address internal instability
problems and assess the likelihood of externalization of such problems.
(C) ENERGY.—The Commission shall evaluate and assess how China’s
large and growing economy will impact upon world energy supplies and the
role the United States can play, including joint R&D efforts and technological
assistance, in influencing China’s energy policy. (D) UNITED STATES CAPITAL MARKETS.—The Commission shall evaluate
the extent of Chinese access to, and use of United States capital markets,
and whether the existing disclosure and transparency rules are adequate
to identify Chinese companies which are active in United States markets
and are also engaged in proliferation activities or other activities harmful
to United States security interests. (E) CORPORATE REPORTING.—The Commission shall assess United States
trade and investment relationship with China, including the need for corporate
reporting on United States investments in China and incentives that China
may be offering to United States corporations to relocate production and
R&D to China. (F) REGIONAL ECONOMIC AND SECURITY IMPACTS.—The Commission shall
assess the extent of China’s ‘‘hollowing out’’
of Asian manufacturing economies, and the impact on United States economic
and security interests in the region; review the triangular economic and
security relationship among the United States, Taipei and Beijing, including
Beijing’s military modernization and force deployments aimed at Taipei,
and the adequacy of United States executive branch coordination and consultation
with Congress on United States arms sales and defense relationship with
Taipei. (G) UNITED STATES-CHINA BILATERAL PROGRAMS.—The Commission shall
assess science and technology programs to evaluate if the United States
is developing an adequate coordinating mechanism with appropriate review
by the intelligence community with Congress; assess the degree of non-compliance
by China and United States-China agreements on prison labor imports and
intellectual property rights; evaluate United States enforcement policies;
and recommend what new measures the United States Government might take
to strengthen our laws and enforcement activities and to encourage compliance
by the Chinese. (H) WORLD TRADE ORGANIZATION COMPLIANCE.—The Commission shall review
China’s record of compliance to date with its accession agreement
to the WTO, and explore what incentives and policy initiatives should
be pursued to promote further compliance by China. (I) MEDIA CONTROL.—The Commission shall evaluate Chinese government
efforts to influence and control perceptions of the United States and
its policies through the internet, the Chinese print and electronic media,
and Chinese internal propaganda. (3) EFFECTIVE DATE.—This section shall take effect on the date of enactment of this Act [February 20, 2003].
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