Pub. L. 108-7, div. P, sec. 2

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:117 STAT. 553 “(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 relationship 117 STAT. 554 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.(3) Effective date.—This section shall take effect on the date of enactment of this Act.