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U.S.– China Economic and Security Review Commission

Hall of the States, Suite 602 • 444 North Capitol Street, N.W. • Washington, D.C. 20001 • Phone: (202) 624-1407 • E-mail: contact@uscc.gov

Introduction:

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 (changing annual report due date from March to June), Pub. L. No. 107-67, __ STAT. ____ (2001)(amendment not yet codified).

Terms of the Commission:

Requires an annual report to Congress on the national security implications and impact of the bilateral trade and economic ties between the United States and the People's Republic of China.

Purpose:

The purpose of the Commission is to study, investigate, assess and report to Congress on the economic and security implications of the bilateral economic relationship between the United States and the People's Republic of China.

Recommendations:

Reports will 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.

Hearings:

Hearings will be held in Washington, DC, and in other regions as considered necessary.

Charter:

The U.S. - China Economic and Security Review Commission Charter

The Commission will examine and report to Congress on the following:

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.

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.

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.

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.

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.

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.

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.

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.

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.

Membership of the Commission

The Commission is composed of 12 members appointed to the Commission based on recommendations by leadership of the House of Representatives and the US Senate as follows:

Appointment of three 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;

Appointment of three 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;

Appointment of three 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, and;

Appointment of three 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

To read the About USCC, click here.

To access information on Written Testimony for the Hearings, click here.
Click on "Hearings" to view testimony by witnesses appearing before the Commission on June 14, 2001

To access Hearing Transcripts, click here.

To access Press Releases, click here.

To access information about Commission Members, click here.

To access Commission Research Papers, click here.

To access Other Works of Interest on the U.S.-China Relationship, click here.

To access USCC Annual Reports, click here.

ADDITIONAL ITEMS:

To access a related site, (Department of Commerce, International Trade Administration, "China Gateway" website, click here.

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