Monday, November 19, 2007

US-China Economic and Security Review Commission Report

SEARCH BLOG: CHINA

Recently, I posted twice about China's strategy for the 21st century:
Here is further perspective. Excerpts below:

  • While speaking of subsidies and violations of free market
    principles, it is worth noting here that China is continuing
    to manipulate the value of its currency in order to gain an
    unfair export advantage. Meanwhile, China has not
    fulfilled its many promises to protect the intellectual
    property of foreign business software and entertainment
    companies from rampant piracy, just to cite two industries
    important to the U.S. economy. Nor has China reduced the
    many subsidies provided to exporting industries in China.
    As of this year, both of these issues are subjects of formal
    complaints before the World Trade Organization, a
    development that the Commission has advocated in the
    past.

  • The Commission also found that the pace of military
    modernization in China has exceeded official U.S.
    estimates. China’s defense industry is producing new
    generations of weapon systems with impressive speed and
    quality, in part because China has developed the capacity to
    integrate commercial technologies into military systems. In
    addition, industrial espionage has given Chinese companies
    an added source of new technologies.

  • The Commission found that the PLA is increasing its
    emphasis on asymmetric or disruptive warfare techniques,
    such as cyber and anti-satellite warfare. We note the
    increase in the number of computer hacking attacks
    targeting government offices in the United States and
    Europe. Also, the Chinese missile test that destroyed a
    satellite this year and laser attacks by China on U.S.
    satellites in 2006. Both of these technological efforts seem
    directed squarely at U.S. military capabilities, which rely
    on satellites and computers far more than do those of other
    nations.
Questions?

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