In 2018, China reported several cases of African swine fever, or ASF, a highly contagious disease that is deadly to pigs. The disease has now spread throughout China, where it has already reduced the country’s hog population by more than 50 million, and throughout other countries in Asia. This report provides an overview of the ASF outbreak in China, the implications for U.S. exports of pork and animal feed products, and the risks posed to U.S. food safety and food security.
Highlights of This Month’s Edition
• Bilateral trade: U.S. goods deficit with China declined in Q1 2019 to $80 billion, down 12.2 percent year-on-year; in 2018, U.S. services surplus in China grew less than 1 percent, as exports increased 2.2 percent and imports increased 5.5 percent.
• Bilateral policy issues: The United States won a WTO dispute against China for unfairly administering its tariff-rate quotas for wheat, corn, and rice; the EU is reported to have won a dispute brought by China over continuing to treat China as a nonmarket economy for the purposes of applying antidumping duties.
• Policy trends in China’s economy: Beijing attempted to recast the Belt and Road Initiative’s image in its second forum, following international pushback on debt-trap diplomacy and corruption; regulators released new rules for the highly anticipated high-tech board on the Shanghai Stock Exchange.
• Quarterly review of China’s economy: China recorded GDP growth of 6.4 percent in the first quarter of 2019 as key economic indicators rebounded from the end of 2018; policymakers leaned heavily on fiscal measures to shore up growth in place of monetary easing, creating concerns about the sustainability of local government debt growth and an expanding budget deficit.
In April 2019, the Hong Kong government formally proposed an extradition bill that would—if passed into law—increase the territory’s susceptibility to Beijing’s political coercion and further erode Hong Kong’s autonomy. The bill, which followed a minimal public comment period and could face a final vote before July 2019, would amend Hong Kong’s laws to allow ad hoc extraditions to mainland China and over 100 countries and territories without mutual extradition arrangements with Hong Kong. In addition to further intruding into Hong Kong’s affairs, the proposed bill could create serious risks for U.S. national security and economic interests in Hong Kong, and potentially violate several key provisions of the U.S.-Hong Kong Policy Act of 1992, which outlines U.S. policy toward the territory. This issue brief provides background on the bill and observers’ concerns with the proposal, risks posed to U.S. interests in Hong Kong, and considerations for Congress.
Chinese companies utilize a variety of methods—many of them covert or coercive—to acquire valuable technology, intellectual property (IP), and knowhow from U.S. firms. These efforts are often made at the direction of and with assistance from the Chinese government, part of Beijing’s larger effort to develop its domestic market and become a global leader in a wide range of technologies. These acquisition attempts frequently target advanced technologies such as artificial intelligence, biotechnology, and virtual reality, which are still in the early stages of development but could provide dual military and civilian capabilities in the future.
This report explores six methods used by Chinese companies to acquire U.S. technology and IP, including (1) foreign direct investment, (2) venture capital investment, (3) joint ventures, (4) licensing agreements, (5) cyber espionage, and (6) talent acquisition programs. It then examines the effectiveness of existing U.S. regulations to assess and address the risks of increased technology transfers to China.
This hearing will examine the implications for the United States of a commercial, scientific, diplomatic, and military strategic competition with China. The hearing will begin with two individual panels comprising a strategic planning perspective on competition with China in space and a current Administration official’s assessment of the balance of power in space and China’s current space-based surveillance capabilities, respectively. The first full panel will examine China’s pursuit of global space leadership, focusing on China’s international space partnerships, its views on international law in space, and its exploration ambitions. The second panel will address the role of military-civil fusion in China’s space ambitions, including the role of military-civil fusion in context of China’s national space goals, U.S. competition with Chinese companies in the international satellite industry, and the adequacy of U.S. export controls. Finally, the third panel will examine China’s military space activities, focusing on its national military space goals and doctrine, its military space and counterspace capabilities, and the intersection of cyber and space in China’s strategy and operations.
China seeks to become an international leader in space, or what it terms a “space power in all respects.” In this role, Beijing aspires to lead international space-related innovation and exploration and establish an advanced system of infrastructure to serve its space sector. China has suffered some setbacks on projects crucial for the progression of program milestones, such as its heavy-lift launch vehicle program, and still lags behind the United States in its human spaceflight and space station program. Nevertheless, China’s space program is a source of national pride, and its consistent high level of political support and funding ensures progress toward establishing itself as a space power. In 2003, China joined the United States and Russia as a member of the exclusive group of countries to have conducted human spaceflight, and since then it has nearly completed a new, rival global navigation satellite system (GNSS)—set for completion in 2020—and demonstrated its willingness to undertake high-risk, high-reward missions, as reflected by its historic landing on the moon’s far side in 2019. China is likely to achieve future milestones in areas where it is lagging behind international standards on shorter timetables than when the United States accomplished similar missions.
This report examines China’s space goals and national space strategy; its progress toward those goals, including an examination of China’s progress in its advanced launch vehicle, long-term crewed space station, and lunar exploration programs; and the primary entities involved in setting and implementing its space policy. Finally, the report assesses the implications of China’s space program for the United States and its continued leadership in space.
The U.S.-China Economic and Security Review Commission was created by the United States Congress in October 2000 with the legislative mandate to monitor, investigate, and submit to Congress an annual report on the national security implications of the bilateral trade and economic relationship between the United States and the People’s Republic of China, and to provide recommendations, where appropriate, to Congress for legislative and administrative action.