America's Future Update on China

Update on National Security

Author and scholar Frank Gaffney has called to our attentionan important warning issued by the bipartisan blue-ribbon U.S.-China Economic and Security Review Commission: "Over the past year, on balance, the trends in the U.S. China relationship have negative implications for our long-term economic and security interests."

The commission urges that we develop "a clear-eyed understanding of how the Chinese military and political leadership leads the country, how decisions are made, and how their economy works . . . China is an authoritarian regime and a non-market command economy still controlled by the Communist Party."

China's leadership persistently tells Chinese military officers that America is the "main enemy" and that war with the United States is "inevitable."

The commission states further that "China is engaged in a major military modernization program. . . . It has markedly expanded its information warfare operations to a level that is clearly designed to disrupt American systems."

Gaffney reminds us that "wealth transfers from the United States are underwriting Beijing's ominous build-up of its armed forces."

Update on Trade with China

The U.S. deficit with China soared to $202 billion with no end in sight as Americans keep consuming more products than we produce. Two bills pending in Congress show Members' concern with China's trade policies. One measure would impose 27% tariffs on Chinese goods if China does not quickly move its currency to higher levels against the dollar. Another pending bill would subject most-favored-nation privileges granted to China to a vote in Congress each year.Washington Times, 2-20-06)

China would overtake the U.S. as the world's biggest economy within three decades, economists said after Beijing reported that China's national income is much higher than previously reported. New data show that China has passed Italy as the world's sixth largest economy and will overtake France and Britain next year. The Times Online, 12-21-05

China says it has become a net exporter of cars and trucks for the first time. About a fourth of the vehicles are made by Chery and Geely, two Chinese brands that sell abroad for less than $10,000. Africa, Asia and the Middle East are the main markets. SFGate, 12-22-05

Update on Theft by China

Chinese technology theft is on the rise. Chinese agents have illegally purchased or were caught stealing night-vision technology, restricted electronic components, embargoed components for precision-guided missiles, radar and electronic warfare, and communications system, according to Immigration and Customs Enforcement officials. China also tried to buy encryption devices that are embargoed for export and computer software used in missile development. China tried to buy parts for F-4 and F-5 jets and Hawk missiles from U.S. suppliers in order to reship them to Iran. Pentagon officials say it is difficult to determine how much technology China has obtained because China often uses third-party nationals to obtain embargoed goods. Washington Times, 7-04-05

Two Chinese nationals were arrested at the Los Angeles Airport on charges of stealing sensitive documents on U.S. Navy warship technology and trying to smuggle them to China. The two were arrested as they boarded a plane for China. In their luggage, authorities found a disk that contained information on U.S. technology designed to suppress the noise of submarine propulsion systems.SFGate, 11-08-05