Hearings
The hearing will examine China’s use of standards, regulation, and censorship as a market-entry barrier. It will also examine China’s use of cyber espionage to gather information for commercial purposes, including turning over U.S. intellectual property to competing Chinese state-owned enterprises. Lastly, the Commission looks forward to hearing these expert witnesses address the recent breach of the OPM and related hacking of federal agencies.
Research
On May 20, 2015, a U.S. Navy P-8A Poseidon surveillance plane flew from Clark Air Base in the Philippines to three South China Sea reefs—Subi Reef, Mischief Reef, and Fiery Cross Reef—where China has been undertaking extensive land reclamation projects in an apparent attempt to bolster its territorial claims and establish a permanent military presence in its near seas. This is just one of several actions the U.S. government has recently taken to “name and shame” China for its increasingly assertive behavior in the South China Sea. It remains to be seen whether this strategy will prompt China to reconsider its current behavior.
Research
On May 26th, the Chinese government released its 10th defense white paper (DWP), entitled “China’s Military Strategy.” DWPs—China’s most authoritative statements on national security—are published by the State Council Information Office and approved by the Central Military Commission, Ministry of National Defense, and State Council. Beijing primarily uses these documents as a public relations tool to help ease deepening international concern over China’s military modernization and answer calls for greater transparency. The new DWP tracks closely with the 2012 DWP and contains no major revelations about China’s military strategy or modernization; however, it includes some new guidance and emphasizes or clarifies certain aspects of its existing strategy, providing insights into China’s perceptions of its own security and its evolving defense priorities.
Research
This paper analyzes China’s preferential trade strategy and rationale. It finds that China has signed trade agreements primarily with countries that are neither significant in the global economy nor vital to China’s export sector. Indeed, several partners enjoy bilateral trade surpluses with China, and have comparative advantages in industries that China may want to protect from outside competition. The way in which China negotiates trade deals is also confounding. Unlike the United States, China appears to lack a modus operandi, so that the scope, strength, and details of its agreements vary widely. Some appear exceedingly generous to the trade partner, while others aggressively promote and protect domestic industries. With respect to services, investment, and other advanced provisions, China tends to fall well short of U.S. standards; yet it also demonstrates greater ambition and flexibility than developing country peers like India and Brazil.
Hearings
The hearing will focus on key developments in the security, diplomatic, and economic spheres of China’s relations with countries in Southeast Asia and with the Association of Southeast Asian Nations (ASEAN). It will seek to understand how China's relations with the region may be changing and assess the implications of developments in China-Southeast Asia relations for the United States.
Research
Chinese businesses participating in the U.S. financial services sector can effectively operate behind a firewall that keeps them largely immune from the jurisdiction of U.S. courts and regulatory agencies, leaving U.S. partners, competitors, and investors vulnerable. Greater legal protections for U.S. entities, including requiring Chinese firms in the United States to assign a domestic agent to receive legal papers such as subpoenas and court notifications, are a possible solution to this dilemma of jurisdiction.