2020 Annual Report to Congress

2020 REPORT TO CONGRESS

of the

U.S.-CHINA ECONOMIC AND SECURITY REVIEW COMMISSION

ONE HUNDRED SIXTEENTH CONGRESS

SECOND SESSION

DECEMBER 2020

Printed for the use of the U.S.-China Economic and Security Review Commission

Available online at:

2020 REPORT TO CONGRESS

of the

U.S.-CHINA ECONOMIC AND SECURITY REVIEW COMMISSION

ONE HUNDRED SIXTEENTH CONGRESS

SECOND SESSION

DECEMBER 2020

Printed for the use of the U.S.-China Economic and Security Review Commission

Available online at:

u.s. government publishing office washington : 2020

For sale by the Superintendent of Documents, U.S. Government Publishing Office Internet: bookstore. Phone: toll free (866) 512?1800; DC area (202) 512?1800

Fax: (202) 512?2104 Mail: Stop IDCC, Washington, DC 20402?0001

U.S.-CHINA ECONOMIC AND SECURITY REVIEW COMMISSION

ROBIN CLEVELAND, Chairman CAROLYN BARTHOLOMEW, Vice Chairman

COMMISSIONERS

ANDREAS BORGEAS

THEA MEI LEE

BOB BOROCHOFF

KENNETH LEWIS

JEFFREY FIEDLER

Hon. JAMES M. TALENT

Hon. CARTE P. GOODWIN

MICHAEL R. WESSEL

ROY D. KAMPHAUSEN

LARRY M. WORTZEL

Daniel W. Peck, Executive Director

The Commission was created on October 30, 2000 by the Floyd D. Spence National Defense Authorization Act of 2001, Pub. L. No. 106?398 (codified at 22 U.S.C. ?7002), as amended by: The Treasury and General Government Appropriations Act, 2002, Pub. L. No. 107?67 (Nov. 12, 2001) (regarding employment status of staff and changing annual report due date from March to June); The Consolidated Appropriations Resolution, 2003, Pub. L. No. 108?7 (Feb. 20, 2003) (regarding Commission name change, terms of Commissioners, and responsibilities of the Commission); The Science, State, Justice, Commerce, and Related Agencies Appropriations Act, 2006, Pub. L. No. 109?108 (Nov. 22, 2005) (regarding responsibilities of the Commission and applicability of FACA); The Consolidated Appropriations Act, 2008, Pub. L. No. 110?161 (Dec. 26, 2007) (regarding submission of accounting reports; printing and binding; compensation for the executive director; changing annual report due date from June to December; and travel by members of the Commission and its staff); The Carl Levin and Howard P. ``Buck'' McKeon National Defense Authorization Act for Fiscal Year 2015, Pub. L. No. 113?291 (Dec. 19, 2014) (regarding responsibilities of the Commission).

The Commission's full charter and statutory mandate are available online at: .

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U.S.-China Economic and Security Review Commission

December 1, 2020

The Honorable Chuck Grassley President Pro Tempore of the U.S. Senate, Washington, DC 20510 The Honorable Nancy Pelosi Speaker of the U.S. House of Representatives, Washington, DC 20510

Dear Senator Grassley and Speaker Pelosi:

On behalf of the U.S.-China Economic and Security Review Commission, we are pleased to transmit the Commission's 2020 Annual Report to Congress. This Report responds to our mandate "to monitor, investigate, and report to Congress on the national security implications of the bilateral trade and economic relationship between the United States and the People's Republic of China." The Commission reached a broad and bipartisan consensus on the contents of this Report, with all 12 members voting unanimously to approve and submit it to Congress.

In accordance with our mandate, this Report, which is current as of October 16, includes the results and recommendations of our hearings, research, and review of the areas identified by Congress in our mandate, as defined in Public Law No. 106?398 (October 30, 2000) and amended by Public Laws No. 107?67 (November 12, 2001), No. 108?7 (February 20, 2003), 109?108 (November 22, 2005), No. 110? 161 (December 26, 2007), and No. 113?291 (December 19, 2014). The Commission's charter, which includes the 11 directed research areas of our mandate, is included as Appendix I of the Report.

The Commission conducted seven public hearings, taking testimony from 62 expert witnesses from government, the private sector, academia, think tanks, research institutions, and other backgrounds. For each of these hearings, the Commission produced a transcript (posted on our website at ). This year's hearings included:

? China's Quest for Capital: Motivations, Methods, and Implications;

? China's Military Power Projection and U.S. National Interests;

? A "China Model?" Beijing's Promotion of Alternative Global Norms and Standards;

? China's Evolving Healthcare Ecosystem: Challenges and Opportunities;

? China's Strategic Aims in Africa;

? The Chinese View of Strategic Competition with the United States; and

? U.S.-China Relations in 2020: Enduring Problems and Emerging Challenges.

The Commission received a number of briefings by executive branch agencies and the intelligence community, including both unclassified and classified briefings on China's relationship with the European Union, the cross-Strait military balance, U.S.-Hong Kong

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