This hearing will discuss Beijing’s perceived security concerns regarding Taiwan, the East China Sea (Senkaku Islands), as well as challenges to China’s maritime claims in the South China Sea. These areas are “regional hotspots” for which the People's Liberation Army is actively preparing for contingencies that could result in armed conflicts between China and U.S. allies, friends, and partners in the Asia Pacific region which could or, in the case of an ally, would result in a diplomatic or military response by the United States. The hearing will take place in Dirksen Senate Office Building, Room 419 at 9:30 AM on Thursday, April 13.
Highlights of This Month’s Edition
• Bilateral trade: In February, U.S. deficit with China reached $23 billion, down 26.6 percent month-on-month and 18.3 percent year-on-year.
• Bilateral policy issues: The United States is poised to maintain China’s status as a nonmarket economy; at Beijing’s request, WTO establishes panel to review the EU’s treatment of China as a nonmarket economy; Chinese outbound investment reached record levels in 2016, but an unprecedented number of Chinese investment transactions were canceled as Chinese authorities adopt measures to control capital outflows; additional measures to restrict outbound FDI will likely lead to an investment decline in 2017; China expands foothold in the U.S. rail market with a new $137.5 million contract to build train cars for Philadelphia’s transit system.
• Policy trends in China’s economy: Work reports from China’s National People’s Congress stress the centrality of the CCP in policymaking, with President Xi at the helm; priority given to clamping down on financial instability; China is planning to establish a trading link connecting bond markets in China and Hong Kong.
• Sector focus – Artificial Intelligence: China is aggressively closing gap with the United States for global leadership in artificial intelligence.
The report examines Chinese investment in U.S. aviation and related university connections with Chinese entities and assesses the implications of the resulting technology transfer on U.S. national security and aviation industry competitiveness. This report was prepared for the Commission by the RAND Corporation.
Chinese imports account for a disproportionately high number of product safety recalls in the United States, and China’s position as the largest supplier of U.S. consumer imports challenges U.S. safety regulatory agencies who must apply finite resources to screen out risky products. This staff paper explores unique product safety problems posed by Chinese imports, including legal difficulties associated with holding China-based firms accountable for unsafe products, gaps in China’s safety regulatory structure, and difficulty in identifying Chinese products that have been shipped through third party countries. The report also summarizes U.S. import safety procedures followed by the U.S. Consumer Product Safety Commission and U.S. Food and Drug Administration and the resources available to these agencies to detect unsafe imports.
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.