The U.S.-China Economic and Security Review Commission (USCC) released its 2015 Annual Report to Congress today. The 2015 report provides information on and analysis of developments in the U.S.-China security dynamic, U.S.-China bilateral trade and economic relations, and China’s evolving bilateral relationships with other nations.
The U.S.-China Economic and Security Review Commission will release the Commission’s 2015 Annual Report to Congress on Wednesday, November 18, 2015. Copies of the full report will be available at this event hosted by the Chairman and Vice Chairman of the Commission starting at 9:00am in room 106 in the Dirksen Senate Office Building.
In February 2015, China and Argentina announced prospective weapons sales and defense cooperation agreements extending beyond the scope of any made between China and a Latin American nation to date. These plans include Argentina’s purchase or coproduction of 14-20 fourth-generation fighter aircraft, at least 100 armored personnel carriers, and five naval vessels; enhanced military-to-military exchanges; and China’s construction in Argentina of a space tracking facility in conjunction with satellite imagery sharing. If fulfilled, these agreements would vastly surpass China’s previous regional arms exports in value and achieve several new benchmarks in the breadth, competitiveness, and technological sophistication of its regional arms sales; altogether representing a new phase in China-Latin America defense engagement. These developments would present several implications for U.S. objectives in the region: U.S. arms suppliers would likely see continued market share reduction, the United States may face a new regional security hazard, regional actors might alter their political stances or use Chinese arms in ways unfavorable to U.S. interests, and the Falkland Islands dispute might briefly and temporarily intensify. Despite the rapid growth and proximity of China’s regional defense engagements, however, they present no direct security threat to the United States.
This Issue Brief examines the U.S. Navy’s recent freedom of navigation patrol in the South China Sea, and discusses what China, the United States, and the rest of the region might do next in the South China Sea. The last time U.S. military ships and aircraft sailed or flew within 12 nautical miles (nm) of Chinese-occupied features in the Spratly Islands was 2012. On October 27, however, a U.S. Navy guided missile destroyer conducted a freedom of navigation patrol within 12 nm of Subi Reef, a land feature on top of which China has built an artificial island. Reportedly, the patrol “was completed without incident,” though China’s navy sent two ships to monitor and issue warnings to the U.S. destroyer. The U.S. ship also conducted freedom of navigation operations within 12 nm of land features occupied by Vietnam and the Philippines. The objective of the freedom of navigation patrol appears to have been to signal that the U.S government does not consider China to have sovereignty over the 12 nm area of sea adjacent to Subi Reef. Transforming a low-tide elevation into an artificial island does not entitle it to a territorial sea. The patrol did not make a statement about the validity of China’s sovereignty claim over Subi Reef itself.
Highlights of this Month’s Edition • Bilateral trade: In September, the U.S. deficit in goods trade with China hit $36.3 billion, the highest monthly deficit on record; quarterly service imports from China reach highest level on record, weakening the U.S. trade in services surplus. • Policy trends in China’s economy: Fifth Plenum sets course for the 13th Five-Year Plan; President Xi’s state visit to the UK nets expanded international role for the RMB. • Quarterly review of China’s economy: China’s GDP grew 6.9 percent in third quarter; government moves to support the economy. • Sector spotlight – Aluminum: Chinese subsidies and preferential policies have created overcapacity that has lowered global prices and eroded the profitability of the U.S. aluminum sector.



Cloud Computing Cyber Cyberspace Economic Economics International Law Security Trade Bulletin Trade Data