§ 7002. — United StatesChina Security Review Commission.
[Laws in effect as of January 7, 2003]
[Document affected by Public Law Section )]
[Document affected by Public Law Section )]
[Document affected by Public Law Section )]
[Document affected by Public Law Section )]
[Document affected by Public Law Section )]
[CITE: 22USC7002]
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 77--UNITED STATES-CHINA RELATIONS
SUBCHAPTER VI--RELATED ISSUES
Sec. 7002. United States-China Economic and Security Review
Commission
(a) Purposes
The purposes of this section are as follows:
(1) To establish the United States-China Economic and Security
Review Commission to review the national security implications of
trade and economic ties between the United States and the People's
Republic of China.
(2) To facilitate the assumption by the United States-China
Economic and Security Review Commission of its duties regarding the
review referred to in paragraph (1) by providing for the transfer to
that Commission of staff, materials, and infrastructure (including
leased premises) of the Trade Deficit Review Commission that are
appropriate for the review upon the submittal of the final report of
the Trade Deficit Review Commission.
(b) Establishment of United States-China Economic and Security Review
Commission
(1) In general
There is hereby established a commission to be known as the
United States-China Economic and Security Review Commission (in this
section referred to as the ``Commission'').
(2) Purpose
The purpose of the Commission is 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.
(3) Membership
The Commission shall be composed of 12 members, who shall be
appointed in the same manner provided for the appointment of members
of the Trade Deficit Review Commission under section 127(c)(3) of
the Trade Deficit Review Commission Act (19 U.S.C. 2213 note),
except that--
(A) appointment of members by the Speaker of the House of
Representatives shall be made after consultation with the
chairman of the Committee on Armed Services of the House of
Representatives, in addition to consultation with the chairman
of the Committee on Ways and Means of the House of
Representatives provided for under clause (iii) of subparagraph
(A) of that section;
(B) appointment of members by the President pro tempore of
the Senate upon the recommendation of the majority leader of the
Senate shall be made after consultation with the chairman of the
Committee on Armed Services of the Senate, in addition to
consultation with the chairman of the Committee on Finance of
the Senate provided for under clause (i) of that subparagraph;
(C) appointment of members by the President pro tempore of
the Senate upon the recommendation of the minority leader of the
Senate shall be made after consultation with the ranking
minority member of the Committee on Armed Services of the
Senate, in addition to consultation with the ranking minority
member of the Committee on Finance of the Senate provided for
under clause (ii) of that subparagraph;
(D) appointment of members by the minority leader of the
House of Representatives shall be made after consultation with
the ranking minority member of the Committee on Armed Services
of the House of Representatives, in addition to consultation
with the ranking minority member of the Committee on Ways and
Means of the House of Representatives provided for under clause
(iv) of that subparagraph;
(E) persons appointed to the Commission shall have expertise
in national security matters and United States-China relations,
in addition to the expertise provided for under subparagraph
(B)(i)(I) of that section;
(F) each appointing authority referred to under
subparagraphs (A) through (D) of this paragraph shall--
(i) appoint 3 members to the Commission;
(ii) make the appointments on a staggered term basis,
such that--
(I) 1 appointment shall be for a term expiring on
December 31, 2003;
(II) 1 appointment shall be for a term expiring on
December 31, 2004; and
(III) 1 appointment shall be for a term expiring on
December 31, 2005;
(iii) make all subsequent appointments on an approximate
2-year term basis to expire on December 31 of the applicable
year; and
(iv) make appointments not later than 30 days after the
date on which each new Congress convenes;
(G) members of the Commission may be reappointed for
additional terms of service as members of the Commission; and
(H) members of the Trade Deficit Review Commission as of
October 30, 2000, shall serve as members of the Commission until
such time as members are first appointed to the Commission under
this paragraph.
(4) Retention of support
The Commission shall retain and make use of such staff,
materials, and infrastructure (including leased premises) of the
Trade Deficit Review Commission as the Commission determines, in the
judgment of the members of the Commission, are required to
facilitate the ready commencement of activities of the Commission
under subsection (c) of this section or to carry out such activities
after the commencement of such activities.
(5) Chairman and Vice Chairman
The members of the Commission shall select a Chairman and Vice
Chairman of the Commission from among the members of the Commission.
(6) Meetings
(A) Meetings
The Commission shall meet at the call of the Chairman of the
Commission.
(B) Quorum
A majority of the members of the Commission shall constitute
a quorum for the transaction of business of the Commission.
(7) Voting
Each member of the Commission shall be entitled to one vote,
which shall be equal to the vote of every other member of the
Commission.
(c) Duties
(1) Annual report
Not later than June 1 each year (beginning in 2002), the
Commission shall submit to Congress a report, in both unclassified
and classified form, regarding the national security implications
and impact of the bilateral trade and economic relationship between
the United States and the People's Republic of China. The report
shall include a full analysis, along with conclusions and
recommendations for legislative and administrative actions, if any,
of the national security implications for the United States of the
trade and current balances with the People's Republic of China in
goods and services, financial transactions, and technology
transfers. The Commission shall also take into account patterns of
trade and transfers through third countries to the extent
practicable.
(2) Contents of report
Each report under paragraph (1) shall include, at a minimum, a
full discussion of the following:
(A) The portion of trade in goods and services with the
United States that the People's Republic of China dedicates to
military systems or systems of a dual nature that could be used
for military purposes.
(B) The acquisition by the People's Republic of China of
advanced military or dual-use technologies from the United
States by trade (including procurement) and other technology
transfers, especially those transfers, if any, that contribute
to the proliferation of weapons of mass destruction or their
delivery systems, or that undermine international agreements or
United States laws with respect to nonproliferation.
(C) Any transfers, other than those identified under
subparagraph (B), to the military systems of the People's
Republic of China made by United States firms and United States-
based multinational corporations.
(D) An analysis of the statements and writing of the
People's Republic of China officials and officially-sanctioned
writings that bear on the intentions, if any, of the Government
of the People's Republic of China regarding the pursuit of
military competition with, and leverage over, or cooperation
with, the United States and the Asian allies of the United
States.
(E) The military actions taken by the Government of the
People's Republic of China during the preceding year that bear
on the national security of the United States and the regional
stability of the Asian allies of the United States.
(F) The effects, if any, on the national security interests
of the United States of the use by the People's Republic of
China of financial transactions and capital flow and currency
manipulations.
(G) Any action taken by the Government of the People's
Republic of China in the context of the World Trade Organization
that is adverse or favorable to the United States national
security interests.
(H) Patterns of trade and investment between the People's
Republic of China and its major trading partners, other than the
United States, that appear to be substantively different from
trade and investment patterns with the United States and whether
the differences have any national security implications for the
United States.
(I) The extent to which the trade surplus of the People's
Republic of China with the United States enhances the military
budget of the People's Republic of China.
(J) An overall assessment of the state of the security
challenges presented by the People's Republic of China to the
United States and whether the security challenges are increasing
or decreasing from previous years.
(3) Recommendations of report
Each report under paragraph (1) shall also include
recommendations for action by Congress or the President, or both,
including specific recommendations for the United States to invoke
Article XXI (relating to security exceptions) of the General
Agreement on Tariffs and Trade 1994 with respect to the People's
Republic of China, as a result of any adverse impact on the national
security interests of the United States.
(d) Hearings
(1) In general
The Commission or, at its direction, any panel or member of the
Commission, may for the purpose of carrying out the provisions of
this section, hold hearings, sit and act at times and places, take
testimony, receive evidence, and administer oaths to the extent that
the Commission or any panel or member considers advisable.
(2) Information
The Commission may secure directly from the Department of
Defense, the Central Intelligence Agency, and any other Federal
department or agency information that the Commission considers
necessary to enable the Commission to carry out its duties under
this section, except the provision of intelligence information to
the Commission shall be made with due regard for the protection from
unauthorized disclosure of classified information relating to
sensitive intelligence sources and methods or other exceptionally
sensitive matters, under procedures approved by the Director of
Central Intelligence.
(3) Security
The Office of Senate Security shall--
(A) provide classified storage and meeting and hearing
spaces, when necessary, for the Commission; and
(B) assist members and staff of the Commission in obtaining
security clearances.
(4) Security clearances
All members of the Commission and appropriate staff shall be
sworn and hold appropriate security clearances.
(e) Commission personnel matters
(1) Compensation of members
Members of the Commission shall be compensated in the same
manner provided for the compensation of members of the Trade Deficit
Review Commission under section 127(g)(1) and section 127(g)(6) of
the Trade Deficit Review Commission Act (19 U.S.C. 2213 note).
(2) Travel expenses
Travel expenses of the Commission shall be allowed in the same
manner provided for the allowance of the travel expenses of the
Trade Deficit Review Commission under section 127(g)(2) of the Trade
Deficit Review Commission Act.
(3) Staff
An executive director and other additional personnel for the
Commission shall be appointed, compensated, and terminated in the
same manner provided for the appointment, compensation, and
termination of the executive director and other personnel of the
Trade Deficit Review Commission under section 127(g)(3) and section
127(g)(6) of the Trade Deficit Review Commission Act. The executive
director and any personnel who are employees of the United States-
China Economic and Security Review Commission shall be employees
under section 2105 of title 5 for purposes of chapters 63, 81, 83,
84, 85, 87, 89, and 90 of that title.
(4) Detail of government employees
Federal Government employees may be detailed to the Commission
in the same manner provided for the detail of Federal Government
employees to the Trade Deficit Review Commission under section
127(g)(4) of the Trade Deficit Review Commission Act.
(5) Foreign travel for official purposes
Foreign travel for official purposes by members and staff of the
Commission may be authorized by either the Chairman or the Vice
Chairman of the Commission.
(6) Procurement of temporary and intermittent services
The Chairman of the Commission may procure temporary and
intermittent services for the Commission in the same manner provided
for the procurement of temporary and intermittent services for the
Trade Deficit Review Commission under section 127(g)(5) of the Trade
Deficit Review Commission Act.
(f) Authorization of appropriations
(1) In general
There is authorized to be appropriated to the Commission for
fiscal year 2001, and for each fiscal year thereafter, such sums as
may be necessary to enable the Commission to carry out its functions
under this section.
(2) Availability
Amounts appropriated to the Commission shall remain available
until expended.
(g) Federal Advisory Committee Act
The provisions of the Federal Advisory Committee Act (5 U.S.C. App.)
shall not apply to the Commission.
(h) Effective date
This section shall take effect on the first day of the 107th
Congress.
(Pub. L. 106-398, Sec. 1 [[div. A], title XII, Sec. 1238], Oct. 30,
2000, 114 Stat. 1654, 1654A-334; Pub. L. 107-67, title VI, Secs. 645(a),
648, Nov. 12, 2001, 115 Stat. 556; Pub. L. 108-7, div. P, Sec. 2(b)(1),
(c)(1), Feb. 20, 2003, 117 Stat. 552.)
References in Text
Section 127 of the Trade Deficit Review Commission Act, referred to
in subsecs. (b)(3) and (e), is section 127 of Pub. L. 105-277, which is
set out in a note under section 2213 of Title 19, Customs Duties.
The Federal Advisory Committee Act, referred to in subsec. (g), is
Pub. L. 92-463, Oct. 6, 1972, 86 Stat. 770, as amended, which is set out
in the Appendix to Title 5, Government Organization and Employees.
The first day of the 107th Congress, referred to in subsec. (h), was
Jan. 3, 2001.
Codification
Section was enacted as part of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001, and not as part of the U.S.-
China Relations Act of 2000 which comprises this chapter.
Amendments
2003--Pub. L. 108-7, Sec. 2(b)(1)(A), inserted ``Economic and''
before ``Security'' in section catchline.
Subsec. (a)(1), (2). Pub. L. 108-7, Sec. 2(b)(1)(B), inserted
``Economic and'' before ``Security''.
Subsec. (b). Pub. L. 108-7, Sec. 2(b)(1)(C)(i), inserted ``Economic
and'' before ``Security'' in heading.
Subsec. (b)(1). Pub. L. 108-7, Sec. 2(b)(1)(C)(ii), inserted
``Economic and'' before ``Security''.
Subsec. (b)(3). Pub. L. 108-7, Sec. 2(b)(1)(C)(iii)(I), which
directed the amendment of introductory provisions by inserting
``Economic and'' before ``Security'', could not be executed because
``Security'' does not appear.
Subsec. (b)(3)(F). Pub. L. 108-7, Sec. 2(c)(1), added subpar. (F)
and struck out former subpar. (F) which read as follows: ``members shall
be appointed to the Commission not later than 30 days after the date on
which each new Congress convenes;''.
Subsec. (b)(3)(H), (4), (e)(1), (2). Pub. L. 108-7,
Sec. 2(b)(1)(C)(iii)(II), (iv), (D)(i), (ii), which directed insertion
of ``Economic and'' before ``Security'', could not be executed because
``Security'' does not appear.
Subsec. (e)(3). Pub. L. 108-7, Sec. 2(b)(1)(D)(iii)(II), inserted
``Economic and'' before ``Security'' in second sentence.
Pub. L. 108-7, Sec. 2(b)(1)(D)(iii)(I), which directed the amendment
of first sentence by inserting ``Economic and'' before ``Security'',
could not be executed because ``Security'' does not appear.
Subsec. (e)(4), (6). Pub. L. 108-7, Sec. 2(b)(1)(D)(iv), (v), which
directed the amendment of pars. (4) and (6) by inserting ``Economic
and'' before ``Security'', could not be executed because ``Security''
does not appear.
2001--Subsec. (c)(1). Pub. L. 107-67, Sec. 648, substituted ``June''
for ``March''.
Subsec. (e)(3). Pub. L. 107-67, Sec. 645(a), inserted at end ``The
executive director and any personnel who are employees of the United
States-China Security Review Commission shall be employees under section
2105 of title 5 for purposes of chapters 63, 81, 83, 84, 85, 87, 89, and
90 of that title.''
Change of Name
Pub. L. 108-7, div. P, Sec. 2(b)(2), Feb. 20, 2003, 117 Stat. 552,
provided that: ``Any reference in any Federal law, Executive order,
rule, regulation, or delegation of authority, or any document of or
relating to the United States-China Security Review Commission shall be
deemed to refer to the United States-China Economic and Security Review
Commission.''
Effective Date of 2003 Amendment
Pub. L. 108-7, div. P, Sec. 2(c)(3), Feb. 20, 2003, 117 Stat. 554,
provided that: ``This section [amending this section and enacting
provisions set out as notes under this section] shall take effect on the
date of enactment of this Act [Feb. 20, 2003].''
Effective Date of 2001 Amendment
Pub. L. 107-67, title VI, Sec. 645(b), Nov. 12, 2001, 115 Stat. 556,
provided that: ``The amendment made by this section [amending this
section] shall take effect on January 3, 2001.''
Responsibilities of the Commission
Pub. L. 108-7, div. P, Sec. 2(c)(2), Feb. 20, 2003, 117 Stat. 553,
provided that: ``The United States-China Commission shall focus, in lieu
of any other areas of work or study, on the following:
``(A) Proliferation practices.--The Commission shall analyze and
assess the Chinese role in the proliferation of weapons of mass
destruction and other weapons (including dual use technologies) to
terrorist-sponsoring states, and suggest possible steps which the
United States might take, including economic sanctions, to encourage
the Chinese to stop such practices.
``(B) Economic reforms and united states economic transfers.--
The Commission shall analyze and assess the qualitative and
quantitative nature of the shift of United States production
activities to China, including the relocation of high-technology,
manufacturing, and R&D facilities; the impact of these transfers on
United States national security, including political influence by
the Chinese Government over American firms, dependence of the United
States national security industrial base on Chinese imports, the
adequacy of United States export control laws, and the effect of
these transfers on United States economic security, employment, and
the standard of living of the American people; analyze China's
national budget and assess China's fiscal strength to address
internal instability problems and assess the likelihood of
externalization of such problems.
``(C) Energy.--The Commission shall evaluate and assess how
China's large and growing economy will impact upon world energy
supplies and the role the United States can play, including joint
R&D efforts and technological assistance, in influencing China's
energy policy.
``(D) United states capital markets.--The Commission shall
evaluate the extent of Chinese access to, and use of United States
capital markets, and whether the existing disclosure and
transparency rules are adequate to identify Chinese companies which
are active in United States markets and are also engaged in
proliferation activities or other activities harmful to United
States security interests.
``(E) Corporate reporting.--The Commission shall assess United
States trade and investment relationship with China, including the
need for corporate reporting on United States investments in China
and incentives that China may be offering to United States
corporations to relocate production and R&D to China.
``(F) Regional economic and security impacts.--The Commission
shall assess the extent of China's `hollowing-out' of Asian
manufacturing economies, and the impact on United States economic
and security interests in the region; review the triangular economic
and security relationship among the United States, Taipei and
Beijing, including Beijing's military modernization and force
deployments aimed at Taipei, and the adequacy of United States
executive branch coordination and consultation with Congress on
United States arms sales and defense relationship with Taipei.
``(G) United states-china bilateral programs.--The Commission
shall assess science and technology programs to evaluate if the
United States is developing an adequate coordinating mechanism with
appropriate review by the intelligence community with Congress;
assess the degree of non-compliance by China and United States-China
agreements on prison labor imports and intellectual property rights;
evaluate United States enforcement policies; and recommend what new
measures the United States Government might take to strengthen our
laws and enforcement activities and to encourage compliance by the
Chinese.
``(H) World trade organization compliance.--The Commission shall
review China's record of compliance to date with its accession
agreement to the WTO, and explore what incentives and policy
initiatives should be pursued to promote further compliance by
China.
``(I) Media control.--The Commission shall evaluate Chinese
government efforts to influence and control perceptions of the
United States and its policies through the internet, the Chinese
print and electronic media, and Chinese internal propaganda.''
