The U.S.-China Economic and Security Review Commission has published the official hearing record for its February 6, 2004 hearing on "China's Military Modernization and the Cross-Strait Balance," including findings and recommendations for Congress on this topic. The record is available on the Commission's website (www.uscc.gov) and in hard copy from the Commission.

The hearing laid out the significant progress China has made in its military modernization programs as a result of dramatic increases in military spending and acquisitions of foreign military technologies, particularly from Russia. Hearing participants also took note of reports that the European Union (EU) was currently debating whether to lift its current arms embargo against China, and the qualitative improvements that the Chinese military could make if EU arms sales were to resume.

China's military modernization programs are principally focused on improving China's military options and capabilities against Taiwan. In particular, China's continuing missile build-up opposite Taiwan - the U.S. Defense Department estimates that China now has 450 short-range ballistic missile aimed at Taiwan - poses a serious challenge to Taiwan's security. The Commission's hearing occurred during heightened tensions in cross-Strait relations, with Taiwan scheduled to vote on national referenda during its presidential election on March 20 on whether Taiwan should deploy advanced anti-missile defenses to counter China's missile deployment and whether Taiwan should negotiate a cross-Strait framework for peace and stability with Beijing. China has vehemently objected to the proposed referenda, which it views as a Taiwan move toward independence.

Given this environment in cross-Strait relations, the Commission used the hearing to closely examine U.S. commitments under the Taiwan Relations Act (TRA), the law serving as the foundation of U.S. cross-Strait policy. The discussion focused on the important role the TRA sets out for Congress in the fashioning of U.S. policy toward Taiwan, and whether Congress has been given sufficient information by the Executive Branch to play this important role. The Commission concluded that Congress has regularly been excluded from cross-Strait policy decision-making by a succession of Administrations, and that certain important documents or reports the Executive Branch has prepared on this subject have never been shared with Congress.

In light of these findings, the Commission made the following recommendations to Congress:

• The Congress should urge the President and the Secretaries of State and Defense to strongly press their EU counterparts to maintain the EU arms embargo on China. Further, the Congress should request the Department of Defense to provide a comprehensive report to the appropriate committees of jurisdiction on the nature and scope of Russian military sales to China. In addition, Congress should urge the Executive Branch to continue its positive working relationship with the Israeli Government to limit Israeli military sales to China.
• Congress should enhance its oversight role in the implementation of the TRA. Executive Branch officials should be invited to consult on intentions and report on actions taken to implement the TRA through the regular committee hearing process of the Congress, thereby allowing for appropriate public debate on these important matters. This should include, at a minimum, an annual report on Taiwan's request for any military aid and a review of U.S.-Taiwan policy in light of the growing importance of this issue in U.S.-China relations.
• The responsible committees of Congress should request that the Executive Branch make available to them a comprehensive catalogue and copies of all the principal formal understandings and other communications between the United States and both China and Taiwan on the parameters of the trilateral relationship, as well as other key historical documents clarifying U.S. policy in this area.