The Commission was created on October 30, 2000 by the Floyd D. Spence National Defense Authorization Act for 2001 § 1238, P.L. 106-398 (codified at 22 U.S.C.§ 7002 (2001), as amended by:
- the Treasury and General Government Appropriations Act for 2002 § 645 (regarding employment status of staff), P.L. 107-67 (Nov. 12, 2001);
- Division P of the "Consolidated Appropriations Resolution, 2003," P.L. 108-7 (Feb. 20, 2003) (regarding Commission name change, terms of Commissioners, and responsibilities of Commission);
- P.L. 109-108 (enacted Nov. 22, 2005) (regarding responsibilities of Commission and applicability of FACA - View FACA Provisions);
- Division J of the “Consolidated Appropriations Act, 2008,” P.L. 110-161 (Dec. 26, 2007) (regarding responsibilities of the Commission and changed annual report due date from June to December).
22 U.S.C. § 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 United States-China Economic and Security Review 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 the date of the enactment of this Act [enacted Oct. 30, 2000] shall serve as members of the United States-China Economic and Security Review Commission until such time as members are first appointed to the United States-China Economic and Security Review Commission under this paragraph.
(4) Retention of support. The United States-China Economic and Security Review Commission shall retain and make use of such staff, materials, and infrastructure (including leased premises) of the Trade Deficit Review Commission as the United States-China Economic and Security Review Commission determines, in the judgment of the members of the United States-China Economic and Security Review Commission, are required to facilitate the ready commencement of activities of the United States-China Economic and Security Review Commission under subsection (c) 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 Dec. 1 each year [beginning in 2008], 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.
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 United States-China Economic and Security Review 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 United States-China Economic and Security Review Commission shall be allowed and conducted under the rules and procedures applying to travel by members of the House of Representatives and its staff. [House Rule 25]
(3) Staff. An executive director and other additional personnel for the United States-China Economic and Security Review 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 [19 USCS § 2213 note]. 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, United States Code, for purposes of chapters 63, 81, 83, 84, 85, 87, 89, and 90 of that title [language of 2001 amendment, Sec. 645]. Compensation for the executive director may not exceed the rate payable for level II of the executive schedule [5 U.S.C. 5314]
(4) Detail of government employees. Federal Government employees may be detailed to the United States-China Economic and Security Review 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 [19 USCS § 2213 note].
(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 United States-China Economic and Security Review Commission may procure temporary and intermittent services for the United States-China Economic and Security Review 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 [19 USCS § 2213 note].
(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.
AMENDMENT: Enacted into law by Public Law 107-67:
SEC. 645. (a) Section 1238(e)(3) of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (as enacted by Public Law 106-398) is amended by adding at the end the following: "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, United States Code, for purposes of chapters 63, 81, 83, 84, 85, 87, 89, and 90 of that title." (b) The amendment made by this section shall take effect on January 3, 2001."
AMENDMENT: Enacted into law by Division P of Public Law 108-7:
SECTION 1. SHORT TITLE.—This division may be cited as the ‘‘United States-China Economic and Security Review Commission’’.
SEC. 2. (a) APPROPRIATIONS.—There are appropriated, out of any funds in the Treasury not otherwise appropriated, $1,800,000, to remain available until expended, to the United States-China Economic and Security Review Commission.
(b) NAME CHANGE.—
(1) IN GENERAL.—Section 1238 of the Floyd D. Spence National Defense Authorization Act of 2001 (22 U.S.C. 7002) is amended—
(A) in the section heading by inserting ‘‘ECONOMIC AND’’ before ‘‘SECURITY’’;
(B) in subsection (a)—
(i) in paragraph (1), by inserting ‘‘Economic and’’ before ‘‘Security’’; and
(ii) in paragraph (2), by inserting ‘‘Economic and’’ before ‘‘Security’’;
(C) in subsection (b)—
(i) in the subsection heading, by inserting ‘‘ECONOMIC AND’’ before ‘‘SECURITY’’;
(ii) in paragraph (1), by inserting ‘‘Economic and’’ before ‘‘Security’’;
(iii) in paragraph (3)—
(I) in the matter preceding subparagraph (A), by inserting ‘‘Economic and’’ before ’’Security’’; and
(II) in subparagraph (H), by inserting ‘‘Economic and’’ before ‘‘Security’’; and
(iv) in paragraph (4), by inserting ‘‘Economic and’’ before ‘‘Security’’ each place it appears; and
(D) in subsection (e)—
(i) in paragraph (1), by inserting ‘‘Economic and’’ before ‘‘Security’’;
(ii) in paragraph (2), by inserting ‘‘Economic and’’ before ‘‘Security’’;
(iii) in paragraph (3)—
(I) in the first sentence, by inserting ‘‘Economic and’’ before ‘‘Security’’; and
(II) in the second sentence, by inserting ‘‘Economic and’’ before ‘‘Security’’;
(iv) in paragraph (4), by inserting ‘‘Economic and’’ before ‘‘Security’’; and
(v) in paragraph (6), by inserting ‘‘Economic and’’ before ‘‘Security’’ each place it appears.
(2) REFERENCES.—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.
(c) MEMBERSHIP, RESPONSIBILITIES, AND TERMS.—
(1) IN GENERAL.—Section 1238(b)(3) of the Floyd D. Spence National Defense Authorization Act of 2001 (22 U.S.C. 7002) is amended by striking subparagraph (F) and inserting the following:
‘‘(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;’’.
(2) RESPONSIBILITIES OF THE COMMISSION.—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 relationshipwith 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 ‘‘hollowingout’’ 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.
(3) EFFECTIVE DATE.—This section shall take effect on the date of enactment of this Act.
AMENDMENT: Enacted into law by SEC. 635 of Public Law 109-108
SEC. 635. (a) MODIFICATION OF RESPONSIBILITIES.—Notwithstanding any provision of section 1238 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (22 U.S.C. 7002), or any other provision of law, the United States–China
Economic and Security Review Commission established by subsection (b) of that section shall investigate and report exclusively on each of the following areas:
(1) PROLIFERATION PRACTICES.—The role of the People’s Republic of China in the proliferation of weapons of mass destruction and other weapons (including dual use technologies), including actions the United States might take to encourage the People’s Republic of China to cease such practices.
(2) ECONOMIC TRANSFERS.—The qualitative and quantitative nature of the transfer of United States production activities to the People’s Republic of China, including the relocation of high technology, manufacturing, and research and development facilities, the impact of such transfers on United States national security, the adequacy of United States export control laws, and the effect of such transfers on United States economic security and employment.
(3) ENERGY.—The effect of the large and growing economy of the People’s Republic of China on world energy supplies and the role the United States can play (including through joint research and development efforts and technological assistance) in influencing the energy policy of the People’s Republic of China.
(4) ACCESS TO UNITED STATES CAPITAL MARKETS.—The extent of access to and use of United States capital markets by the People’s Republic of China, including whether or not existing disclosure and transparency rules are adequate to identify People’s Republic of China companies engaged in harmful activities.
(5) REGIONAL ECONOMIC AND SECURITY IMPACTS.—The triangular economic and security relationship among the United States, Taipei, and the People’s Republic of China (including the military modernization and force deployments of the People’s Republic of China aimed at Taipei), the national budget of the People’s Republic of China, and the fiscal strength of the People’s Republic of China in relation to internal instability in the People’s Republic of China and the likelihood of the externalization of problems arising from such internal instability.
(6) UNITED STATES-CHINA BILATERAL PROGRAMS.—Science and technology programs, the degree of non-compliance by the People’s Republic of China with agreements between the United States and the People’s Republic of China on prison labor imports and intellectual property rights, and United States enforcement policies with respect to such agreements.
(7) WORLD TRADE ORGANIZATION COMPLIANCE.— The compliance of the People’s Republic of China with its accession agreement to the World Trade Organization (WTO).
(8) FREEDOM OF EXPRESSION.—The implications of restrictions on speech and access to information in the People’s Republic of China for its relations with the United States in the areas of economic and security policy.
(b) APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.— Subsection (g) of section 1238 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 is amended to read as follows:
‘‘(g) APPLICABILITY OF FACA.—The provisions of the Federal Advisory Committee Act (5 U.S.C. App.) shall apply to the activities of the Commission.’’.
SEC. 636. Section 635 of division B of Public Law 108–447 is amended by striking ‘‘balance’’ and inserting ‘‘and unexpended balances’’.
SEC. 637. None of the funds made available in this Act may be used to pay expenses for any United States delegation to any specialized agency, body, or commission of the United Nations if such commission is chaired or presided over by a country, the government of which the Secretary of State has determined, for purposes of section 6(j)(1) of the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)), has provided support for acts of international terrorism.
AMENDMENT: Enacted into law by Title I of Public Law 110-161
For necessary expenses of the United States-China Economic and Security Review Commission, $4,000,000, including not more than $4,000 for the purpose of official representation, to remain available until September 30, 2009: Provided, That the Commission shall submit a spending plan to the Committees on Appropriations no later than March 1, 2008, which effectively addresses the recommendations of the Government Accountability Office’s audit of the Commission (GAO–07–1128): Provided further, That the Commission shall provide to the Committees on Appropriations a quarterly accounting of the cumulative balances of any unobligated funds that were received by the Commission during any previous fiscal year: Provided further, That for purposes of costs relating to printing and binding, the Commission shall be deemed, effective on the date of its establishment, to be a committee of Congress: Provided further, That compensation for the executive director of the Commission may not exceed the rate payable for level II of the Executive Schedule under section 5314 of title 5, United States Code: Provided further, That section 1238(c)(1) of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001, is amended by striking ‘‘June’’ and inserting ‘‘December’’: Provided further, That travel by members of the Commission and its staff shall be arranged and conducted under the rules and procedures applying to travel by members of the House of Representatives and its staff.
