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>> ladies and gentlemen, the president of the united states and mrs. michelle obama. ♪ [playing hail to the chief] [background sounds]

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[background noise] >> mr. president, this concludes the honor. >> thank you. [background sounds] >> good morning, everyone. president hu, members of the chinese delegation, on behalf of michelle and myself, welcome to the white house.

and on behalf of the american people, welcome to the united states. [speaking in native tongue] >> three decades ago on a january day like this, another american president stood here and welcomed another chinese leader for the historic normalization of relations between the united states and a peoples republic of china. on that day, dung ping talked about the cooperation between our two nations. [speaking in native tongue]

>> looking back on that winter day in 1979, it is now clear the previous 30 years had been a time of estrangement for our two countries. the 30 years since have been a time of growing exchanges and understanding. and with this visit, we can lay the foundation for the next 30 years. [speaking in native tongue]

>> at a time when some doubt the benefits of cooperation between the united states and china, this visit is also a chance to demonstrate a simple truth. we have an enormous stake in each other's success. in an interconnected world, in a global economy, nations, including our own, will be more prosperous and more secure when we work together. [speaking in native tongue]

forei [speaking in native tongue] >> the united states welcome back china's rise as a strong prosperous and successful member of the community of nations. indeed, china's success has brought with it economic benefits for our people as well as yours. and our cooperation on a range of issues have helped advanced stability in the asia pacific and in the world. [speaking in native tongue]

>> we also know this, history shows that societies are harmonious, nations are more successful, and the world is more just when the rights and responsibilities of all nations and all people are upheld. including the universal rights of every human being. [speaking in native tongue] [speaking in native tongue] >> mr. president, we can learn from our people. chinese and american students and educators, business people, tourists, researchers and

scientists including chinese americans who are here today. they work together and make progress together every single day. they know that even as our nations compete in some areas, we can cooperate in so many others, in a spirit of mutual respect for our mutual benefit. [speaking in native tongue] [speaking in native tongue] [speaking in native tongue]

>> for as deng xiaoping said a long time ago is the same today. there's still possibilities for cooperation between our countries. president hu, members of the chinese delegation, we have these responsibilities together. welcome to the united states of america. [speaking in native tongue] [applause] [speaking in native tongue] [applause] [speaking in native tongue]

[speaking in native tongue] >> translator: mr. president, mrs. obama, ladies and gentlemen, dear friends, it gives me great pleasure to come to washington and pay the state visit to the united states at the beginning of the new year at the invitation of president obama. at this point in time, let me extend on behalf of the 1.3 billion chinese people sincere greetings and best wishes to the people of the united states. [speaking in native tongue]

[speaking in native tongue] >> translator: i have come to the united states to increase mutual trust, enhance friendship, deepen cooperation and push forward the positive, cooperative and comprehensive china/u.s. relationship for the 21st century. [speaking in native tongue] [speaking in native tongue]

>> translator: over the past 32 years, since the establishment of diplomatic ties, the china/u.s. relationship has grown into one with strategic significance and global influence. since president obama took office with concerted efforts of the two sides, our cooperation has produced fruitful results and our relations have achieved new progress. this has brought real benefits to our two peoples and contributed greatly to world peace and development. [speaking in native tongue] [speaking in native tongue]

[speaking in native tongue] >> translator: as we enter the second decade of the 21st century, the people of both china and the united states want to see further progress in our relations. and people around the globe want to see greater prosperity in the world. under the new circumstances, and in the face of new challenges, china and the united states share broad, common interests and important common responsibilities. we should adopt a long-term perspective, seek common ground while resolving differences and work together to achieve

sustained, sound and steady development of our relations. i hope that through this visit, our two countries will advance the policies, cooperative and comprehensive relationships and open a new chapter in our cooperation as partners. [speaking in native tongue] forei [speaking in native tongue] >> translator: our cooperation as partners should be based on mutual respect. we live in an increasingly diverse and caliber world. china and the united states should respect each other's choice of development tasks and each other's core interests.

we should deepen mutual understanding through communication, increase mutual trust through dialog and expand common ground through exchanges. [speaking in native tongue] [speaking in native tongue] >> translator: our cooperation as partners should be based on mutual benefit. china's future and destiny are increasingly tied to those of the world. and china/u.s. relations have become close. our two countries should seek to learn each other through exchanges and have win/win cooperation. this is the right approach to

develop our relations. [speaking in native tongue] >> translator: our cooperation of partners should be based on joint efforts to meet challenges. china and united states should step up communication and coordination in international affairs, work together to counter the global challenges and make a greater contribution to world peace and development. [speaking in native tongue] [speaking in native tongue]

>> translator: our cooperation of partners should be based on the extensive involvement of the people. the chinese and american people cherish deep friendship towards each other. and they fought side-by-side at defining moments in history when the future and the destiny of mankind were at stake. the two peoples to extend enhanced friendship it will foster a driving force for the growth of our relations. [speaking in native tongue] [speaking in native tongue]

>> translator: ladies and gentlemen, our role is to undergoing development, major changes and major adjustments to pursue peace, development and cooperation is the irresistible trend of our time. let us seize the opportunity to forge ahead hand-in-hand and work together to enhance cooperation as partners. and let us work with all other countries to have a harmonious world of lasting peace and common prosperity. thanks again, mr. president, for your warm welcome. [applause]

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♪ >> president obama and chinese president hu jintao on the south lawn of the white house. vice president joe biden and his wife jill greeting the president today. presidents of both countries greeting to the crowd of this gathering of pomp and ceremony. both presidents taking a moment to meet-and-greet well wisher. president hu is at the start of the four-day visit to the u.s. where he'll be attending meetings on currency, trade, security and human rights concerns during his visit. our coverage of the chinese president will continue with a joint press conference with president obama. that will be live at 1:05 eastern. and then at 2:00 we'll be live from the state department where secretary of state clinton and vice president biden and his wife jill will be cohosting a launch in honor of the chinese delegation. we will focus much of our programming today on the relationship between the u.s. and china. coming up at 10:30 eastern on this network, the house foreign

affairs committee is holding a briefing to discuss current relations between the two countries including the impact of china's economic security and human rights policies on the u.s. florida republican congresswoman chairs that committee. and more coverage of the visit of the chinese president tonight as the white house hosts a state dinner in his honor. it will begin at 5:30 eastern as we'll show you guest arrivals for the dinner at 6:00 we'll have the arrival of the chinese president and his wife on the north portico of the white house. and then at 8:00, we'll bring you a discussion on the state visit including re-airs of toast. president obama and president hu along with viewer phone calls. that's starting at 8:00 pm eastern. a discussion for you on u.s./china relations. john huntsman will be speaking

from the brookings institution. this is about an hour. [inaudible conversations] >> i'm kenneth -- >> good morning, to this second forum on u.s. -- on u.s./china strategic forum on clean energy cooperation. i'm just delighted you all could make it today. for some of the americans despite the weather that may have made it a little more difficult to get over here this morning. let me make a few announcements and then i wanted to turn the chair over to john thornton.

first, there is simultaneous translation available. you each should have a microphone. you can plug this in to the microphone and directions are over here. channel 5 for english. channel 6 for chinese. please hold on to your ear phones and your cassette through the morning, through this session and the following one. and then at the end of the morning, you can put your microphones on the table over there. as you leave. secondly, you'll get -- you should have a schedule that tells you where to go from each session to each session. but we will also make announcements at the end of every session so that you will be very clear about what begins next and where you go in between. finally, let me ask you to be sure to turn your cell phones off. and so we can focus wholly on

the speakers and the substance. with that set of brief announcements, let me introduce john l. thornton who is part of the board of trustees, john? >> thank you, ken. i want to start the proceedings by reading a letter from president obama. when i'm finished then my cohost will read a letter from president hu jintao. from president obama, i send warm greetings to all those attending the second annual united states china strategic forum on clean energy cooperation. your participation contributes substantially to meeting the global challenges of climate change. america's relationship with china is among the most important and consequential in the world today. continuing to strengthen the cooperation of our two countries to address common global challenges will help shape and improve the world in the 21st

century. a vital component of this effort is our robust bilateral collaboration on climate change and clean energy. which is necessary to ensure both nations accelerate our respective transitions to low carbon energy secure economies. by working together we can hasten the development and deployment of clean energy technologies to our mutual benefit and to the betterment of our world. i am pleased our governments were able to come together constructively over the past year to promote a successful outcome in cancun building on the copenhagen accord, namely, the cooperation of the cancun agreements. the global challenge of climate change cannot be addressed by our governments alone. we also need the active support and cooperation of the private sector, scientific communities, nongovernmental organizations and other stakeholders involved in public policy to develop a strong, clean energy partnership. events like this forum bring these parties together, helping

us to build this partnership and accomplish our shared goals. i wish you all the best for a productive event, barack obama. thank you, chairman jung over to you. [applause] >> okay. [speaking in native tongue] >> translator: ladies and gentlemen, dear friends, good morning. we're all very pleased to come to washington to hold this very important strategic forum on u.s.-china clean energy

cooperation. this is the second session. the first session was very successful. and i wish the second session to be a very successful conference. now i would like to have our chinese president mr mr. hu jintao's message. to our second session on the strategic forum on u.s.-china clean cooperation on january 16th, 2011, and this is the message from president hu jintao on the occasion of the second session of the strategic forum on u.s.-china clean energy cooperation cohosted by the china institute of innovation and development strategy and the brookings institution.

[speaking in native tongue] >> translator: in washington, d.c. i would like to express congratulations to all the participants to the forum from china and the united states. and also i would like to give my sincere greetings to the friends from both countries who have carried the ballot relationship. in 2009, the first session of the strategic forum on u.s.-china clean energy cooperation was successfully held in beijing, which provided a platform for men and women from both countries. to promote cooperation in

involvement and energy. i believe the second session of the forum will continue to promote our two countries cooperation on clean energy and sustainable development. this forum will certainly play a very important role in this area. china and the united states are both energy producers and energy consumers. in our cooperation on clean energy and environments we have great potential. according to the 10-year framework of cooperation of energy, we have steadily pushed forward our pragmatic cooperation in the area of energy. and our efforts with the international community to meet the challenges of climate

change, and that has substantiated of china and u.s. relations. [speaking in native tongue] >> translator: now we have a number of important topics in human development and social development. china and the united states have more extensive common interest now, and we both shoulder heavy responsibilities and more important responsibilities. the chinese side is willing to work together with the united states on the basis mutual respect and mutual benefits to promote positive, cooperative and comprehensive china-u.s. relationships. so as to benefit the peoples in both our two countries and the peoples around the world.

[speaking in native tongue] >> translator: i wish this second session of the strategic forum on u.s.-china clean energy cooperation a big success. hu jintao, president of the peoples republic of china 16th of january, 2011. [applause] >> a few comments by way of

introduction of this session. and i'll be brief. i see this -- the point of this entire two days as doing our part to ensure that the issues of clean energy and energy efficiency are at the center of the u.s.-china relationship. i also see that interaction, that exchange on this topic as a kind of model for other countries. if the two biggest consumers and emitters can work together to solve these problems, then any other countries should be able to do the same. i also see that the model for u.s. and china relations if they can cooperate then there's no reason why we can't cooperate constructively. people to people interaction and by that i just don't mean exchange but deepening relationships. everyone knows the world is built off relationships and everyone knows that these are

central to building a cooperative relationship between our two countries and so i would encourage you to go out of your way to deepen your relationships with friends from the other country. secondly, i see the content of this meeting directly impacting policies in our two countries. we know from the two letters we just received from our respective leaders that they are taking this very seriously. and we will give the input of this conference directly to them and have a direct impact on policy and then finally in the course of the two days, we will have announcements of some concrete agreements to show that we're not simply having a talk shop here but we are actually doing things. now, i'm going to say a few quick words about ambassador and he will speak. i'm not going to belabor his biography which you either know or it's in your brochure.

i'll simply say -- the following two or three points. he has been been a very successful business leader, political leader, and statesman and in all of those roles he's always been an innovative thinker and a very pragmatic leader. to my chinese friends in particular, i want to say about ambassador huntsman, insofar as you are learning about our country this is somebody to pay attention to. he cares deeply about china. he is highly knowledgeable about china. in fact, in my -- in my experience and i've now been paying close attention for quite a few years, in my mind, he's among the leaders of this country, the public leaders of this country. he's the single most knowledgeable and interested and passionate observer of your country and i think, therefore, can be a very important constructive relationship going forward. he was able to carve out some time during his very busy schedule here during the state visit and i give you ambassador jon huntsman. [applause] [speaking in native tongue] >> translator: how is everybody today. the weather is bad this morning but i see most people have shown up and that's very good.

i'm very grateful giving me the great introduction and my wife is here and my wife can hear nice words about me. >> -- >> to thank those who are gathered here. we have so many excellent leaders, my good friend and former ambassador and my excellent friend. just to name is few, and i'm so very, very delighted that this session through brookings is able to bring a spotlight on something as important as clean energy within the u.s.-china relationship. and to john thornton who himself is a one-man think tank. i want to thank him for his friendship and for his vision and for his guidance in particular that resulting in

bringing us here today. winston churchill used to say famously, you never kiss a person who's leaning away from you. you never climb a mountain that is leaning toward you. and you never speak to a group that knows a hell of a lot more about the subject matter than you do, which is the cardinal rule that i am violating this morning. my friends in china have another way to say it. [speaking in native tongue] >> in just a few hours, the president, who will arrive in washington, has first state visit by a chinese leader since 1997 when deng xiaoping visited

bill clinton. ken lieberthal and whom we all read closely remembers that. matt mcclarty remembers that as well. think about that. almost 15 years has passed. the world has changed a lot since then. when deng xiaoping visited the united states in 1979, we all remembered those vivid images that came from that visit. he helped set the course for a new and revitalized u.s.-china relationship and i believe president hu's visit will have a similarly significant impact on where this relationship will go in the decades ahead. and where this relationship goes is important not only for the united states and china but also for the rest of human kind. you see no two countries are more prominently positioned on

the world stage today. the united states and china are the world's two largest economies. we have two of the largest militari militaries. we are the two largest energy users and carbon emitters. for so many reasons, this is a bilateral relationship that touches every country on earth. and these are the most critical issues of our day, from the economy, to the environment, from national security to nuclear proliferation, the way forward must include joint action by both the united states and china. to be sure, the united states and china do have important and fundamental differences that we need to be honest about. and confront openly and respectfully and believe me, neither side is shy about that. in my opinion, that is the best

way to develop a friendship even and especially among friends and partners. building trust the old-fashioned way, just as we have done now for almost 40 years since the communique was signed in february of 1972. it's not always easy. it won't always be smooth. but the reasons for close collaboration with both countries are just too compelling. and if either country wants to succeed, both countries will have to work together. and so as we move forward, i believe increasingly we need to demonstrate the tangible benefits of this relationship. we need to highlight how this relationship helps improve lives here in america from wall street

to main street and believe me in this age of instantaneous communication, i believe the same will be required of my friends from china. this is what what makes today's gathering timely and important. cooperation on clean energy is a prime example of where we can further our common interests. and benefit not only our people but also many throughout the world for decades to come. our two countries have had some successes in this area. you'll hear about them through the day. the problem is, those successes which are often accomplished in the context of a jcct or an s & ed or some other acronym, don't necessarily resonate with average americans. we have to humanize these

accomplishments. we have to make them real in ways that citizens on both sides better see the benefits of supporting a strong u.s.-china relationship. what does that mean? it means we can't just discuss these taught topics as abstruse or table issues. we have to make clear that the u.s.-china relationship is one of the best opportunities we have to improve the quality of life for average american families and businesses big and small because the economic opportunities are increasingly very real. so when people ask me why we should cooperate with china, on clean energy initiatives, i say it's very simple. we are embarking on a technological revolution in clean energy. .. clean energy like the space

program or electronics of the 20th century that will dramatically expand high-quality jobs, living standards and the economy of the united states. we will get better products, lower prices and more jobs in both countries. i believe the possibilities in this particular area, clean energy, or unlimited. here's a good example. a few months ago i met the legendary innovator and philanthropist bill gates in beijing. generally when bill gates mentions he has an idea for the product, i listen. tt this time the product is a newt kind of nuclear reactor,kin something that could operate fof 40-60 years without refueling. compare that to what we haveha today where reactors need to be ened opened up and refueled every 18 months of so. so

so the bet is, if this technology works we could need a lot less uranium to create a loo more energy with far less ee nuclear waste. and keeping the uranium inside the reactor means we don't have to worry about terrorists buying it on the black market. you can see why this would be oe such great interest to so many people. while china? this is an american company, but the simple reality is right nows the regulatory environment heren in the united states means itthd would take decades just toe certify the design. so by partnering with thethe de. chinese they can move ahead and then commercialize the technology around the globe when it is proven. the end result, countries around the the world would get cleaner, safer energy and a jointany u.s.-china company could coleadl the world a nuclear reactor construction which is a very bi.

deal for somany involved. today with jobs being so very needed forve cooperation onratio nuclear energy development iser creating tremendouss opportunities for new employment throughout the united states. westinghouse is a prime example i'm surep many of you are alreau familiar with their work in i china where they are focused on foreign -- for a next generation appear reactors. would youn may not know is those four reactors in china haveav 0lready either saved or created0 5,000 high-quality jobs here ins america and across 13 different states.er so as long as we continue to coe produce cutting edge technology and maintain our competitive advantage in management, services, and education the china market will boom very large.china maet wil and as china continues itslargec efforts and renewable energy we

are beginning to see chinese companies launching operations united states. un that means even more investment and job creation here for us. more broadly our cooperation on clean energy is important andmpt timely because of its impact on the environment, health, and quality of life. this is a global challenge, and it cannot be resolved unilaterally. we need to cooperate across acrs ideologies and across borders, and we are.ar both countries have committedom $150 millionmi in public and private support for a new, cleaa energy research center which willrc help generate new ideas d new products in at least three a critical areas with vast potential. efficient building codes, carbon capture and the sequestration and electric vehicles. why do i think theseec are such critical areas? well, look at the numbers. umb

70 percent of china's energy comes from coal. c china currently uses half of th world cement every year.veryear if current building trends continue it will probably buildu enough for space in the next 30 years to pay the entire unitedte states of america. in one year that is all of the york. last year in beijing there were more than 700,000 new cars on the road.the that is 2,000 new cars every day in beijing alone. that might be hard to imagine,o but ticket from a guy who makes thte commute daily. my travel time is almost double in the last year. the challenge now is, where doln we go from here?from we are moving in a similarg inai direction. the question is, how do we is ho ensure a common pathway for botw the yen states and china. united states and china and that

puts us back to where i started to read these cooperative efforts will only work if we have the public behind us. we have to be relentless in demonstrating the benefits and speaking honestly about the challenges. in closing, let me suggest three ways we can broaden the public understanding of the importance of the relationship with china and the need for greater cooperative efforts. first, we need to continue to expand and promote mutual understanding country to country and people to people. we are already moving toward our goal to send 100,000 u.s. students to china which is perhaps the greatest investment long term that this country could be making. and i know we are working overtime at the industry at beijing and the consulate throughout china to process a record number of the visa applications for chinese business delegations from students, performing, performers

and tourist here in the united states. we just recently confirmed china is now the number one country in the world in terms of sending students to the united states. 130,000 in total in just one year by 40%. by the weak, in terms of job creation, let me just add pretty much every one of those 130,000 students is paying full tuition which means every time we issued one of those visas we are either saving or creating a job in the united states. second, we need to continue our cooperative effort to protect intellectual property rights in china. this is a critical issue in the high-tech sector including clean energy and it generates a lot of concern in both u.s. and chinese companies. we spent the past 16 months in particular working hard to

convince chinese businesses that this is not a u.s. versus china issue. this is an issue that affects anyone developing new ideas and new products. i was lucky enough to address a roomful of chinese entrepreneurs last year the conference where the u.s. relationship started in 1972. and i can tell you this next generation of chinese innovators and strategic leaders, they get this better than just about anybody regardless of nationality or business affiliation. increasingly, they have at least as much to lose from violations as their american counterparts. so i'm very optimistic we are starting to gain a little ground on this. i should also note the chinese government recently launched a six month crackdown on counterfeit technology and is making sure every government

office is binding legal software only, no bootlegs and we greatly applaud this effort. third, we should expand our official points of contact. tomorrows state visit should help us usher a new era of bilateral cooperation and not just at the top, but across the board. we need to encourage our governors and provincial leaders, our mayors and local officials to spend a little more time comparing notes. the future of this relationship will be more alabama were sold like city [speaking in chinese] last september we organized a visit by over 20 chinese mayors to the u.s. west coast cities to exchange views with their u.s. counterparts on deploying green technologies and cities in both our countries. ultimately, that is where the relationship will flourish at the grassroots where we live and

where we work on main street and around the family dinner table. it is the opinion generated in every home and every home that will determine the long-term success of this relationship. as i sit at the outset, president hu's visit is as important an opportunity as we have had in years to bring this relationship into our daily conversations. our presidents are talking, our businesses are growing and expanding, even our military's are starting to be engaged with one another as they did last week with secretary gates while he was in china for yet another very important exchange. our job with it is about clean energy or energizing the private sector to make the benefits of this relationship as clear as possible for the people of each country. we have to improve the lives of ordinary americans just as the chinese have to improve the lives of their citizens.

if sustained common ground is to be found in the u.s.-china relationship, there is no better impetus than the strong desire on both sides to aggressively pursue a clean energy future, and by doing so, we will likely better understand the meaning of my favorite dynasty after is some: [speaking in chinese] thank you all free much. [applause] >> investor come thank you for kimmage with comments and the inspiration. i hope you see what i said earlier about jon huntsman's ability to hit the nail on the head as about humanizing the

issue is absolutely central and something which needs an enormous amount of work. so why thank you for those comments. now chairman zheng bijian, just to personal comments about him. at brookings be started a practice a few years ago of identifying the most interesting , deepest thinkers and china on public policy issues and translating the work into high-quality english city could be accessible to people in our country. our first book, essays by zheng bijian, because he has been the most innovative and deepest thinker on public policy issues in china for a very long time. the issue of clean energy and energy efficiency is something he identified long before it became commonly discussed. he put it right at the center of his famous peaceful rise theory. we could have no better more

influential voice, no more pragmatic thinker, no more relentless thinker than chairman zheng bijian. we welcome you and look forward to your comments. thank you. [applause] >> [speaking in chinese] >> translator: ambassador huntsman, friends, ladies and gentlemen, today are a record 2006 when president hu jintao made a state visit to the united states as the president of the people's republic of china at that time together with csis

blight organized a strategic workshop of the china u.s. relations with president hu jintao met with participants of the forum, which made for limited success. today, we are very happy to attempt to gather with you before and on the china u.s. relations in the second decade of the 21st century and the second session of the strategic forum on u.s. and china clean energy corporation posted by the china institute of innovation and a defendant strategy and the brookings institution here in washington, d.c. during the important historical moment of president hu jintao's visit to your country. i fully agree with and appreciate ambassador huntsman's

very insightful speech. his assistants are very inspiring and encouraging. i believe his words and predictions will turn out to be true and i have a strong belief in that because i am also an observer. i'm not someone faces things without any ground. looking back to the china u.s. relations since the normalization, we can see that the critical junctures, men and women have risen from both countries, never lost sight of the routes for the trees. the show commendable provide experience and wisdom and joining hands to overcome

difficulties and manage to maintain the normal development of the relations which was good news for the international community. now in the week of the international financial crisis that is both our two countries, we need to remember more than ever the successful experience focused on the word in other words, keep a global vision and show pragmatism and political wisdom in our efforts to remove interferences. in this way, we can refuel the engine of the china u.s. relationship for the new foundation of common interest in the second decades of the 21st century. [speaking in chinese] >> translator: why do i raise this point?

because since the second half of 2008, with the international financial crisis and the growth of the china economic stress there have emerged anxieties in the international public opinion about the direction of china's development and skepticism and speculation about china's intentions to stick to the path of peaceful development. ..

misinterpretation of the direction of china's development.an the interest of the united states as well as the common at interest of china and the united states. i believe then i would like to i see it happen.t to our relief we have heardave recently reassuring and recent voices and wise advice from some americanes strategists. . it shows that we have agreement on the existence of time and interest and entered dependence between our two between at countries. when i studied the subject as an

observer and a scholar, i tried to explain why china's rise is to be peaceful. in the early years of this century, i pointed out on several occasions that it was economic globalization that it made china's rice peaceful, which in turn was keep off in the world opportunities and market the mutual benefit that we will progress. since 2004, i further propose that china needs gradually to build communities of interest with our neighbors and surrounding regions, especially with the united states. as i said, in june 2005, in my

addresses to the national committee on u.s.-china relations in the parking petition, there are factors which one make it possible for our two countries to form communities of interest in multiple areas and that different levels in such communities will not be easily broken a. the fact, as i mentioned, are as follows. in an era of globalization, our interest there's so deeply intertwined that we need each other. the rest of nontraditional security threats has left to a new security concept based on cooperation among major countries. the national community has come to understand that there is

necessity for joint efforts to address personal hot button issues and maintain national peace and security, increasing contacts between the chinese and the american people close together. and i still believe this is true and i believe that the development has proven this fact. for example, we have seen further developments of chinese american student studying each other's countries. i would like to take this of interest in the next decade. first, i look for china's development and second decade of the 21st century.

on the subject of fostering convergence of interest and communities of interest, i must first be briefly about the idea and call of china's development in the second decade of the 21st century. the first two decades of the 21st century are a crucial period in china's endeavor to be a moderately prosperous society in more people. it is a period of development, focusing on improving the life of the people and raising the quality of life in a sustainable manner. it is also a period of transformation of china's economy. now half of this relatively independent empirical.

and we still have 10 years ahead of us. on the whole, in the past 10 years, we have done quite well in quantitative terms, but not in it so satisfactorily and quality of terms. nowhere in the second decade. what kind of alternatives we face in the development. i like to provide you a list. for example, resources and the environment can trains our economic growth and social development, including imbalance between consumption and the city and the rural areas in the eastern and western regions. difficult industrial restructuring and insufficient r&d human resources are unable

to meet the needs of deployment structure and distribution of income and regis and the infrastructure, lacking social governors and increasing social conflicts. severe natural disasters, both predict it will and unpredictable, et cetera. to meet these challenges, i work in the second decade of the 21st century, will concentrate accelerating the transformation of the economic development patterns ensuring in improving people's livelihood, consolidating and expanding our achievements in this financial crisis, facilitating long-term study and reasonable fast

economic growth and stability in the country. all of those will lay a solid foundation for a o 2020 and this is the effort we are making in the second decade of the century. to this end, we must transform our economy from one driven by external demand to one driven by both domestic internal demands, namely domestic demands. [speaking in chinese] >> translator: this'll be accompanied by the accelerated industrial structure. china, a lower middle income country will move to an upper middle income country at a faster pace. what is more, china i

more effort to realizing domestic developments and to raising ethnic standards and it kind of people to work for a lofty ideal, china will become a dynamic country enjoying harmony and stability. plus, china will exceed the goal of relations. without any doubt, i believe that china will provide the rest of the world with a bigger market and greater opportunities for development. this is a big market and misrepresent great opportunities china's past for peaceful rise. today the trend of the world development is economic globalization and interdependent international relations.

in this context and coordination, proper management reform in the peaceful cooperative and beneficial manner will be the means to tackle the existing and emerging problems and such represents the main trend of development. this world as a whole will face both opportunities and challenges with the former outnumbering the latter. that is the general trend of the world. given the fact that in the first decades of the 21st century, china's peaceful development has made it an important part of the world development. in the sun foundation of common interest has been feared between china and the united states, thanks to the global and in the second decade, china will continue to follow this path and

does become a more important part of the world developmentd e first decade, china and the united states may develop common interest which of those defined as more sustainable. [speaking in chinese] >> translator: i've noted that the concepts of common interest i've gone on in the hearts of the state may come depot. all of this will determine the direction of china's relations with the united states and beyond. so that is my first point about china's development. china's development in the second decade of the 21st century. my second point is about china's

past for the rise in the beauty of convergence adventures and communities of interest. in the second decade, china's past horizon policy of beauty and harmonious work needs compromised. the important thing is to expand and deepen the convergence of interest of all parties and foster communities of interest with regions in different areas and at various levels. as i said before, we need such policy choice for china's own development, but we also needed for the common development of both our two countries. and i believe it also informs

that the trend of wealth development. we hope that more and more countries will recognize and understand our policy choice. [speaking in chinese] >> translator: to expand and surest antidote communities of interest has become the policy of government in particular to expand and deepen the convergence with very partners has been incorporated into the community's proposal of formulatg 12 programs for economic and social development, which was issued not long ago. in this address to the opening ceremony of the summit meeting, it was proposed that asian members become a close knit community of interest.

and is telephone conversation with president obama said further that were facing important subjects on how to actively elevate the positive events of china u.s. relationships to a higher level and enter into a property partnership in areas of interest. i would like to say that in fact the convergence adventures between china and the united states has already existed. this is an actual fact. i will not give you a comprehensive list of our achievements and trade development from 25 u.s. dollars to 890 billion u.s. dollars. [speaking in chinese]

>> translator: this was unexpected by both china and the united states. since 2008, our two countries joined hands to cope with the impact of the financial crisis. wasn't as the most significant convergence of interests and special conditions at that time? yes, it was. and now we need to adapt to each other and make the necessary distance in order to work together to deal with changes in the spirit and handle the domestic restructuring of each country. this may become and should become a new convergence adventures between our two countries. in this regard, one thing of earth our attention.

the chinese and american companies are mutually complementary and interdependent in trade and now they're increasingly complementary and the investment as well. for the first time in the united states supposed u.s. investment in china and one year. of course a cumulatively china is much higher, but philosophy alone we have more investments here than in china. so this is a new development. as ambassador hans van mentioned , investment in the infrastructure project is small and medium-sized enterprises in america's south and west will help of its economic recovery and job creation. i think this will show that

china u.s., naturists are moving from the strategic macrolevel to a micro level. during this two days, apart from a dialect, china and u.s. relations, we shall also explore ways to develop convergence adventures in these communities between our two countries is certainly an important areas of clean energy. i believe this kind of discussion will not only contribute to the global effort to address the challenge of climate change, but also help promote low carbon development and energy security for respective countries. in addition, you may crave our business opportuniti the impact on the u. s. ileana ros-lehtinen, the

chairwoman of the house foreign affairs committee. live coverage just getting under way here on c-span2. >> that china u.s. emperor has just landed in washington is at the front lawn of the white house. the pressing issues which for a separate our country need to be urgently addressed. three of those many issues which will be the focus of today's briefing include security concerns, a human-rights, and how our trade imbalance and the chinese currency manipulation adversely impact our u.s. economy. when the cold war ended over two decades ago many in the west it seemed that the threat from communism had been buried with the rubble of the berlin wall, however, while america slapped an authoritarian china was on the rise. china became one of our biggest mortgage companies, holding over $900 billion of our international debt. in these past two decades

western observers forgot that while freedom blossomed in eastern europe reform in china failed. china was led by a cynical group of leaders to sobered by the teeeleven massacre and the marred by the blood of its victims were determined to go forward with economic but not political change. the china that embraced has fallen far short of the benign china which former decker to -- secretary of state spoke in the colony of freeze responsible stakeholder to read a response will say : as this -- reported allows the transshipment of north korean missile components to run. it open defiance of those u.n. sanctions which has the five member states -- a five member states it is duly bound to enforce.

there is a responsible stakeholder declare that the south china sea is one of its core interests in open defiance of the navigational and territorial not -- writes of a southeast asian neighbor? does a responsible stakeholder admonish the u.s. navy that it cannot operate in the yellow sea in the very waters where general douglas macarthur undertook the heroic landing which turned the tide of the war? would irresponsible stakeholder refer to the nobel peace prize committee as a bunch of clowns for awarding an honor to a distinguished chinese human rights advocate? would irresponsible stakeholder the arrests of the wife of a nobel peace prize winner as further respond -- retaliation for speaking the truth about the gross human rights violations in china? the u.s. took a big gamble when it voted for premier and normal trade relations for china over a decade ago in what some termed as the most important vote since

world war ii. the vote was based upon what i see as a sadly mistaken belief that economic openings in a free-market reform would lead to democracy, respect for the rule of law, and a full array of political and human rights for the chinese people. yet today, as we meet here, the research foundation estimates that they are close to 7 million people currently in chinese labor camps. it is as if the entire population of switzerland were being held behind barbed wire. the ruthless campaign against practitioners, a peaceful organization which promotes trade, compassion, and tolerance, has continued unabated for more than 11 years. i was proud to be the sponsor of a resolution in the last congress which received overwhelming bipartisan support addressing the persecution of

fallon gone. the brutal denial of rights to people of tibet and the weaker people, the forced repatriation of number three and red fiji's continues to draw the attention of concerned citizens throughout the world. the american people have also borne the brunt of china's mercantile trade policies which promote trade surpluses through cheap exports based upon an artificial depreciation of china's currency. jobs and american dollars have blown across the pacific to china for the past two decades as the american people have suffered high unemployment and a diminished standard of living. last fall i was pleased to be able to vote in favor of the currency reform for trade -- fair trade act which overwhelmingly passed the house. we are back with a new energy from a newly elected member who is determined to take back america's economy and are committed to a foreign policy

the stance with our allies and hold accountable those to threaten our nation's security interests. and please deterrent to my distinguished ranking member for this committee, mr. berman, for his remarks. >> thank you very much, madam chairman. chinese president hu jintao is in washington this week for a state visit. as we speak he and president obama our meeting at the white house. after an often tense year the two leaders will try to set the contours of the relationship for the immediate future. the u. s-china relationship, one of the most interconnected and complex in global affairs has major implications for the future of asia and the entire world. the challenge for the obama administration is to manage that relationship in no way that strengthens our cooperation with beijing in areas where we have

shared interests while at the same time addressing the serious concerns we have regarding a number of china's policies. china is neither an allied nor an enemy. it is both a competitor and a partner in foreign affairs, security, and economics. a key goal of our china policy must be to prioritize our myriad of global interests, identified those issues where we are most likely to positively change china's position and then find and use our leverage with the chinese to achieve those changes and accomplish our wider foreign-policy objectives. in my view our highest priority should be a rock. tougher sanctions on a ron was a significant diplomatic achievement for the obama administration. there is ample evidence that chinese entities continued to invest in the energy sector of

iran. this helps them avoid the full impact of sanctions and facilitate the continued development of a nuclear weapons capability which turns the u.s., our allies in the middle east, and china, which is dependent on unstable sources of oil from the middle east. we must intensify our efforts to ensure china's full participation in the multilateral sanctions is aimed against -- against iran. the u.s. and china must always deep in our -- as north korea's economic lifeline beijing holds considerable leverage over perrier incoming yet it has been too slow to make it clear to the number three that security and respect can be attained only by giving up its nuclear weapons and refraining from other aggressive behavior. the promotion of human rights and political freedom is a

central goal of american foreign policy. these universal values must remain essential focus of our relationship with china appears record in this area remains deplorable. moreover those values are in china's self-interest, both its international image and in its economic growth are dependent upon developing a society based on the rule of law. in the sphere of economic and trade one area of particular concern is china's theft of intellectual property and its indigenous innovation policy. in addition to compliance with the recent wto decision, china must do more to stop the piracy and counterfeiting that occurs openly on streetcorners and over the internet and step up its enforcement efforts. the crossroads we currently face and the u.s.-china relations present less of a choice for the united states and more of the toys for china. the obama administration has articulated a pragmatic policy

and in several key areas the demonstration has said some success. there is no sign that china has made a fundamental decision to change its decision of leveraging with heightened political control and military modernization with regional and extra regional power projection. at the same time and so letting china as much as possible from outside influences. as much as the rest of the world looks to china to play a constructive role it is not clear that china wants to play a positive influence beyond its borders. i look forward very much to hearing testimony from all of our witnesses today, and i yield back. >> thank you very much. now live would like to yield three minutes to its chairman designate of the subcommittee on asia and the pacific. >> thank you, madam chairman for calling this important briefing,

i strongly believe that china is one of the greatest foreign policy challenges we must face in this century. china's wait in the global economy cannot be ignored. that nation's rapid modernization represents both opportunity and apparel for america. as chairman designate of the subcommittee on the asian-pacific i am keenly aware of the challenges our nation faces when it comes to dealing with china. as experience has shown signs as unfair trade practices including currency manipulation, illegal subsidies and lax enforcement of intellectual property law make it very difficult for the hard-working people of america to compete on a level playing field that benefits this relationship. american manufacturers have been hurt most by this unbalanced relationship.

manufacturing is the lifeblood of the 16th congressional district of the illinois, which i represent. our congressional district as summer between 142500 factories supporting more than 51,000 jobs. 24 percent of value added manufacturing in our congressional district represents exports. it is one of the most dense areas in terms of manufacturing base and one of the most exporting congressional districts in the country. these hard-working men and women want to know what their government is doing to enforce trade laws with china and preserve america's industrial base bag. i hope our distinguished witnesses will focus their remarks on what the administration is doing and what it can do to urge the chinese government to follow the rules. very little has been done in the past several years. in my experience the chinese government is capable of stopping violators when they see it is in their interests to do

so. so many americans are out of court. now is the time for this of ministration to work with congress to hold generous possible and give american manufacturers a chance to compete with china on a level playing field so that manufacturers can create jobs. madame chairwoman, i commend you for giving the american people a well-deserved voice and a look forward to the testimony of our witnesses. >> thank you very much. but we would be recognizing the ranking member designate, but he is not present. we will proceed with the testimony. we are pleased to have as our witnesses a wonderful panel. thank you. we are pleased to welcome mr. larry wortzel to today's briefing. larry is a commissioner on the u.s.-china economic and security review commission appointed by speaker banner. among his many qualifications he served two tours of duty as a military attache of the american

embassy in china and retired from the army with the rank of colonel. thank you for a briefing yesterday. also with us is gordon chang, currently a columnist at forbes. he practiced law in china and hong kong for nearly 20 years and has written extensively on sat and wrote rea. we are grateful to have him here today as he is a much sought after expert on the future of china's economy. but if mr. yang jianli is the founder and president of initiatives for china. he was imprisoned in china following an outcry by congress and others for his release he was freed in april of 2007. immediately following his return to the u.s. he formed initiatives for china, a pro-democracy committee that is committed to peaceful transition to democracy in china. leslie, mr. robert sutter to has been a visiting professor of

asian studies at the school of porn services in georgetown university since 2001. in addition to his full-time position mr. center teaches regularly as an adjunct professor of asian studies in the elliott school of its financial affairs, george washington university. he has extensive government career in congressional research service and other u.s. federal agencies that lasted 33 years. we will begin with mr. larry wortzel. i'm sorry that i'm not so great with the pronunciations, but look at my name. i don't get too picky. i will be rather ruthless with the five minutes, so please confine yourself to five minutes. larry, you are recognized. thank you. >> chairman, ros-lehtinen, ranking member berman, members of the committee, thank you for the opportunity to address you today. that use at present are my own informed by my service in the u.s. army, on the u.s.-china

security and review commission and my own research. in late 2004 chinese communist party chairman ileana ros-lehtinen set out a new set of missions for the people's liberation army. these new historic missions provide the basis for china's future defense research and weapons acquisition plans. they also set the stage for a more assertive use of the armed forces inside and outside of asia in pursuit of expanding national interest. the pl a military modernization efforts provide the means for the armed forces to fill these new missions. china's military modernization efforts are comprehensive, affecting all the domains of war including space and cyber operations. in recent years china has acquired advanced surface ships and submarines to modern combat aircraft, ballistic and cruise

missiles, and advanced command and control systems that tie everything together. in addition, the commander recently stated that china will field a ballistic missile a potential threat against u.s. aircraft carriers in the region's. the pla is still the fallback force of repression for the communist party against the populist. the combination of these new missions and means to carry them out has brought about changes in china's military operation. traditionally the pla focused on domestic response and local contingencies. now is a military with a wider range of missions and the activities. the dispatch of chinese naval vessels in support of anti piracy operations of africa is one example. china's national interests are global, and the pla is becoming a force capable of acting beyond china's periphery.

a more capable military accompanies a more assertive chinese foreign policy. this can be seen in china's recent provocative activities concerning its disputed territorial claims in the south and east tennessee's and in the economic zone. china's military capabilities also stoke beijing's competence. china's him stridently complained about operations and the western pacific. beijing failed to condemn north korean attacks on south korea and strongly objected to a joint military exercises in the region between the united states and south korea. in military operations beijing continues to circumscribe the range of discussions between china and the u.s. refusing to address strategic issues such s cyber warfare and space operations. i'm pleased to see that secretary gates get to visit the second until record and there

was some discussion of nuclear doctrine during his visit. despite his noticeable -- a noticeable improvement in relations across the taiwan strait beijing continues to insist on the right to use force should it interprets taiwan's activities as moving toward independence. across straight military balance increasingly favoring china, and beijing has deployed over 1100 short-range ballistic missiles opposite the island. in my view taiwan's most pressing need is for new or modernized fighter aircraft. china continues arms sales and support to international pariah states such as north korea, burma, and ron. in addition food and energy bad foreign investment that china provides to north korea indirectly enables pyongyang to continue its nuclear efforts, it

shows its economic power by a stoppage by a supplier of rare earth minerals to japan and it was unhappy with japanese policy. madam chairman, members of the committee, the key for the opportunity to do it addressee today. i look forward to your questions. >> they do so very much and take you for the time limit. we appreciate your time. five minutes please. >> chairman ros-lehtinen, remember berman, distinguished members of the commission, thank you for the opportunity to be here today. the dominant narrative in the united states and elsewhere is that china has the upper hand when it comes to the united states. that is what president obama is hosting a state visit for an autocrat, chinese president hu jintao. this generally have the upper hand? i think most americans misperceive the economic relationship between the united states and china. today i would like to comment on three of those misperceptions.

first of all, everybody says that china is decreasing its dependence on the united states back. well, china has an economy that is geared to selling things to last. the chinese economy is dependent upon exports, and its export sector is especially reliant on sales to the united states. last year when all the statistics are in at the we are going to see within 140 percent of china's overall trade surplus related to sales to the united states. that is up from an already stupendous 90% in 2008. that trade dependence gives us enormous leverage because china is not a free trader. it has accumulated surpluses because of clear violations of its obligations under the world trade organization. second, everybody says that china's debt provides up -- our

debt held in the hands of china provides a weapon. since august 2007 the chinese have talked in public about using that as a weapon, and, of course, they call it appropriately the nuclear option. welcome but china hasn't used the nuclear option since it first started talking about it. the reason is they know their attack plan won't work. let's think about the worst possible scenario. the chinese stump all of our dead at one time. we have to look at the way global markets operate. if they do that they have to buy something which means they have to buy things denominated in pounds, euros, and in. that would send those currencies soaring through the ceiling in values which means that london, brussels, and takeya would have to go out into that global market to rebalance our currencies and bring them back down in value. the only way they can do that is to buy dollars.

there would be turmoil, but it would not last long, just a few weeks, maybe a calendar quarter at the most dubious after this is all done we would have our debt held by our friends, rather than our potential enemy. i think the global markets are deep and can handle just about everything. although i do not think the united states should be accumulating debt and suddenly i don't want the chinese to hold it, i also don't think it gives them a weapon. third, you hear many commentators say that china's currency manipulation is not the sole cause of america's trade deficit. well, of course that is right. there are a number of reasons that relate to our trade deficit. china's currency manipulation is an important reason. due to beijing's active manipulation it intervenes every day. the discounted value to the u.s. dollar is somewhere in the vicinity of 20-40%, maybe 30 percent would be a good

estimate for today. a discount of that magnitude, of course, is significant. and i practiced law in asia many of my plans for u.s. manufacturers, and i would watch my plans haggle for days over pennies on unit prices. that is how important prices. it is counter intuitive to think that a discount of 30-40%, and that is what we are talking about, would not have an affect on our trade deficit. you don't have to take my word for it. chinese premier bob, the top of economic officer came to the united states last september and talked about the possibility of countless chinese enterprises going bankrupt and countless chinese workers becoming unemployed if it increased in value. well, if that is what the currency does to china's manufacturers and their employers, then what to you think it does to hours?

nonetheless, many economists say, you should not do this currency bill, h.r. 2378 which passed the house. i think we certainly need to. china won't change its destructive currency practices if we appeal to its self-interest, which is what the bush to administration and obama administration were doing. we have to apply pressure. >> thank you. take you so much. mr. yang. >> thank you, your excellency. the key for the opportunity for me to testify on the fundamental matter in the relationship between u.s. and china. it is the matter of how chinese government treats its own citizens. china is the country with the most prisoners in the world, including a nobel peace prize winner.

.. >> there are three new types of measures to control that the chinese authorities have been increasingly using in the past three years. number one, direct violence. the direct violence against dissidents, human rights

activists and petitioners has increased in recent years. the people who have been doing this are local policemen or thugs hired by police. in some cases government officials are also involved. number two with, house arrest. this recent years -- in recent years house arrest has become more and more widely used as a means of limiting us the dents -- dissidents and their families. as the wife of a blind human rights lawyer or, li jing was placed under house arrest. ever since he was released after sevenning four years and three -- serving four years and three months in prison last september, the entire family has been put under house arrest. the chens, the entire family, has not -- has been cut off from

all contacts with the outside world. those who tried to visit them were badly beaten. lu shah's wife has been put under house arrest since last year when her husband won the 2010 nobel peace prize. and her communication with the outside world has been completely cut off since october 20th last year. number three, disappearance. i also urge you to pay attention to the disappearance of chinese citizens as a result of the government's unwarranted actions. the most notorious case is shin. he has not been heard from ever since last april. after repeatedly detained and severely tortured, and his wife has been with us today here. here.

another important case is that mongolian scholar who was arrested in december 1995 for peaceful activities demanding more autonomy for the mongolian region. he was later sentenced to 15 years in vail request, his -- in jail. his prison term was set to end in december last year, but a few days before that the chinese authorities detained his wife and son. he was never seen getting out of of riz, and today the entire -- prison, and today the entire family has not been heard from. around the time of the nobel peace ceremony, liu xiaobo friends and supporters were either put under house arrest -- [inaudible] so coming pack -- back to the issue, i guess the question is

why should china's treatment of its citizens be important concern for u.s. foreign policy toward china? we have a slew of analysis and answers to this question, and some people can even denounce this question as irrelevant, but i just want to echo the question from "the wall street journal" article last monday. will a rising power that fails to honor commitments to its own people -- >> thank you, mr. yang. >> -- responsibility to fulfill its commitments to other -- >> thank you. that's a good question. thank you. mr. sutter. >> thank you very much, madam chairman and members of the committee. the u.s. relationship with the people's republic of china has been troubled throughout its twisted history. important areas of converging interests between the two powers are usually accompanied by important areas of differences. the relationship has become very broad-ranging, multifaceted and

complicated, and it is the most important bilateral relationship in the world today. a pattern of seeking to advance common ground while managing differences prevail throughout most of the george w. bush administration. like president bush, president obama showed a course with china involving pursuing constructive contacts, preserving and protecting american interests and dealing effectively with challenges posed by rising chinese influence and power. a strong theme in president obama's initial foreign policy was to seek cooperation of other world powers to deal with salient international concerns. he worked very hard at this, but he found the chinese leaders offered only limited cooperation on issues like climate change and others. more worrisome were the challenges that the chinese administration posed for the obama government, and this has been well documented by my ceeg, mr. wortzel, particularly about

the maritime areas around the periphery of china but also a hard line on the president's arm sales to taiwan, on his meeting with the dalai lama and u.s. interveptions in the south chi ya sea and other issues. the obama administration reacted calmly to these tests of assertiveness by china. it gave no ground on any of the chinese demands. it also found that the chinese assertiveness over various issues damaged china's efforts to portray a benign image in asia. these asian governments became more active this working more closely with the united states and in encourage an active u.s. presence in the asia pacific. the overall effect was a decline in china's position in the asia pacific and a rise in the position of the united states. meanwhile, the obama government made clear to the chinese covet

and to the world that the united states is prepared to undertake military measures needed to deal with the build up of chinese forces targeting americans and american interests in the asia pacific. it also helped to move china to curb north korea's repeated provocation by warning privately as well as publicly that the united states viewed north korea's nuclear weapons development as a direct threat to the united states. over the past few months, china has tried to ease differences with the united states in the period leading up to the current visit of president hu jintao. they've done a number of different things in calming the situation between the united states and china over these various areas of differences. looking out, president obama wants to pursue closer engagement with china as part of his administration's overall reengagement with the asia pacific. his administration, also, has made clear it will not give in to pressure and, if needed, will respond to such chinese actions

with appropriate military, diplomatic or other means. it may appear less certain that president hu jintao shares president obama's interests in reengagement. on the other hand, china's recent assertiveness has proven much more costly than beneficial for china's broader interests. it's against this background it seems likely that prevailing circumstances will preserve and reenforce the positive equilibrium in u.s./china relations for three general reasons. first, both administrations seek benefit from positive engagement in various areas. second, both administrations see that the two powers have become so interdependent that emphasizing the negatives in their relationship will hurt the other side, but also will hurt them. third, both leaderships are preoccupied with a long list of urgent, domestic and foreign

priorities. in this situation one of the last things they would seek is a serious confrontation in relations with one another. thank you for your attention, i look forward to responding to your questions. >> thank you so much to an excellent set of panelists. i will be recognizing members for five minutes of questions and answers in order of seniority. for those who were in their seats when the gavel fell, and in order of arrival for those who arrived after the briefing began. i would like to yield my five minutes for questions and answers to congresswoman burkle of new york. the congresswoman is recognized for five minutes. >> thank you, madam chairman. i'll direct my question to colonel wortzel, but if anyone else on the panel would like to comment, i would welcome the answer as well. first of all, thank you for your service. according to recent news reports, china facilitated the shipment of missile parts from north korean aircraft to air iran cargo flight at beijing's

airport. how involved are both the chinese government officials and chinese companies in weapons procurement for iran and in the development of iran's nuclear and missile programs? >> congresswoman buerkle, pretty heavily involved, i guess would be -- >> could you push the button? put the microphone closer to your mouth. thank you. >> thai very heavily involved. -- they're very heavily involved. they accept those shipments from north korea through china, they facilitate them. those things don't happen without the concurrence of central authorities in the provinces and from a national air control system. they've got their own customs people, so they're well aware of it, and they could stop it. they have refused to participate in the proliferation security initiative which would have the

effect of at least helping to control north korean proliferation. i mean, they simply have very different interests in iran than we do. and i would argue that one of their interests is frustrating united states policy and creating a second potential military competitor that is at least a barb down in that part of the world. that limits what we can do, that means we have to be a lot more careful in how we act. they've sold -- everything falls below the limits of the missile technology control regime, but they have sold short-range missiles, they have sold cruise missiles, antiaircraft missiles. so they're not doing a thing to

reduce the potential level of violence and tension in that region. >> thank you very much. >> the gentle lady yields back? if i'd like to reck these the ranking member, mr. berman, for five minutes. >> thank you very much, madam chairman. i'd like to get mr. chang's response and also, perhaps, hear from mr. wortzel and sutter on the very interesting thesis that mr. chang had which, essentially, looking at the issue of our debt obligations to china and our trade deficit as, perhaps, more our leverage than china's lev ram. leverage. and to ask you to play that out

a little longer. to what extent are you suggesting we use that leverage and whether it's in countervailing duties or in passing the kind of legislation that the house passed last year, and for what policy purposes should they be restricted to persuading and pushing china to live within the wto ground rules? or should they be utilized to achieve broader geopolitical and military or purposes? so that's one question. i'll ask 'em all right now, and then the second question, 15, 20 years ago there was a notion that in its heart of hearts china liked american presence in the western pacific, that that was a lot better for them than

japan reconsidering its traditional military policy of thinking about it own nuclear weapons. more recently, what south korea might decide to do. in a way there was a beneficial effect. is that just out the window now? is the chinese military modernization so strong now that they're not concerned about that, and they are truly seeking to have us reverse a position we've had since the end of world war with ii? -- world war ii? and add to that if either robert sutter or larry wortzel would do it, this weekend this isn't the visit of the most recent emperor of china, there's a people's liberation army out there that's starting to do their own hinges without necessarily can -- things without necessarily under the direct direction of the leadership of the communist

party. is there anything to those couple of stories that are emerged recently? and finally if we can get it, i don't know if there'll be time, mr. yang, you were eloquent regarding the issue of political disappearances and the families and the abuse and what goes on inside china. but what you weren't able to get into is how do you think -- what role can we play in affecting and can changing that? i do worry that there won't be time for that last, but go ahead. >> first of all, i'd like to thank the congressman forking fg so polite in his characterization of my views. most people think that i'm wrong, and you were very nice in saying so. [laughter] i think there's a couple things that we these to do. first of all, we need a little bit less diplomacy. we're feeding china's sense of self-importance. i think we don't need new agreements on economic matters because everyone says, you know, when there's a problem with

china, let's go out and negotiate a new deal. we have tons of deals with the chinese. all we need to do is enforce them, and we need to enforce them more vigorously which means we need to take cases to the wto more quickly. and also because of the real problem that china does pose to american manufacturers as i heard earlier, i think we need to do a little bit of self-help which is h.r. 2378. in other words, imposing penalties at an early stage for chinese subsidies. of course, currency manipulation is one -- >> basically, you want to limit that to the economic issues, the currency valuation, the violation of trade rules, the subsidies, not to larger geopolitical issues? we only have 30 seconds. i'd just like to get real quickly from mr. wortzel and be mr. sutter. >> i think the pla is not an independent actor, it is firmly

under the control of the standing committee of the chinese communist party and the central military commission. i think china's ambivalent about the u.s. presence. it's very happy that extended deterrence restrains japan from becoming a nuclear power but wants a more forceful role in the pacific, and i think gordon is absolutely correct on -- >> thank you. we'll continue with mr. sutter at another time. before yielding to mr. smith, i'd like to recognize as has been pointed out the presence of chinese human rights dissidents in the audience representing a cross-section of pressed groups inside china including representatives of the fallon gong -- falun gong, one of several american citizens unjustly imprisoned by the chinese regime. and now i'm pleased to recognize

the chairman of the subme for five minutes -- subcommittee for five minutes. >> you know, ladies and gentlemen, besides being the jailer of the 2010 nobel peace prize winner, we have to ask ourselves who is hu jintao? let's not forget that in 198ed just a few months before the massacre at tiananmen square, hu jintao was beijing's iron fist. the man who ordered the savage beat being of tibetan nuns and monks. hu jintao presides over a gulag state, clearly a dictatorship. he is directly responsible for the systematic detention and torture of millions of peaceful chinese, tibetans and uighurs. harry wu knows what happens this those gulags. torture, cattle prods put under the armpits and genitals.

president hu jintao presides over that sickness and that perversity. president hu's secret police hunts down christians, falun gong and tibetan buddhists, especially the falun gong who are massively being killed in this china today. president hu is responsible for the barbaric end and, really, the worst violation of women's' rights, in my opinion, ever. the one child per couple policy relies on forced abortion to achieve it goals. and president hu's china, brothers and sisters are illegal. they are illegal. anyone in the audience who has a sibling in china, you're only allowed one. as a direct result, the cumulative effect of this barbaric policy, there are 100 million missing girls in china. most of the feminists have been silent about this terrible

gendercide directed against little girls. let me ask yang jianli who has been an outspoken leader on behalf of of chinese human rights, it seems to me when a man like hu jintao comes in, the press give him a free pass. i would ask the press to ask the hard questions, not just the generic question about human rights. ask specifics about what is happening to liu xiaobo, what is happening to gao whose wife is with us today? missing and repeatedly tortured and the terrible burden they put on the children of the dissidents. ask the tough questions to the press, president obama and hillary clinton. just a glossing over of we talked about human rights,

something on a list of talking points won't cut it. be specific and press this hand who, i believe, ought to be at the hague being held to account for crimes rather than being treated with a state dinner. so i would ask mr. jianli, please. >> [inaudible] >> i'll answer congressman berman's question in last round. i think u.s. government should, the least the u.s. government can do and should do is raise i the specific cases in various meetings with their counterparts. this upcoming, i mean, this meaning, for example, if obama really raises the issue of liu xiaobo, it works. it worked with my case, it will continue to work with other cases.

and can -- look at the practice of the u.s. government in the last two years. the government believe that private talking will work more effectively. but look at the record. the u.s. government has not been successful this past two years in helping get think of the rirses out of the prison -- prisoners out of the prison. so we have to apply pressure raising specific cases both privately and publicly. and that's the least the u.s. government can do and should do. and another way to do it to engage with chinese democracy movement directly. now we have a recognized leadership. thousand we have a shared principle -- now we have a shared principle that is enshrined in china -- [inaudible] so democracy movement is viable in china. so engagement with china contains a part that if engaged with the people with china's democracy movement. thank you.

>> thank you. and you emphasized the word publicly. not just private conversation. >> yeah. >> thank you. the gentleman's time has expired. pleased to recognized mr. payne for five minutes. >> thank you very much for yielding, ms. chairperson. i would like to focus my line of questioning on china's economic interests in africa and the impact and implications of china's engagement with african nations for governance, economic growth and human rights across the continent. expansion of china's investment in africa that we witness today began in the 1990s. in that decade alone, china's investment grew by an impressive 700%. accompanying this economic expansion was the wave of chinese migrants from be 750,000 in 2007 who live in africa now, mainly construction, mining workers and oil workers and private traders, but not an

expansion of the africa middle class that would normal hi accompany -- normally accompany infrastructure development. there's been p complex and varied reactions among analysts regarding china's engagement in africa ranging from enthusiasm and guarded optimism to concern over potential chinese strategy and economic threats to western or african interests. so i'd like to get your thoughts on the overall scope of china's growing ties with africa, what are the main political and economic roles, the main benefits and drawbacks, also, in this what way would you say china's relations with african governments have a negative impact on human rights in africa, and what are the potential opportunities for u.s./china cooperation on political, humanitarian and development priorities in china? they've had a meeting where 43 countries were invited to china, 42 showed up.

on one hand they had open fire on workers who protested about poor working conditions in zambia, chinese soldiers just fired on them and wounded 11 or 12 of them. but on the other hand, they give 4,000 scholarships a year to african students, and that may be to indoctrinate them to china. so maybe mr. wortzel and mr. sutter would like to take that. >> thank you very much, congressman. this is a very complicated and important issue. keep in mind i think the driving force of china's high profile in africa is somewhat desperate in a way. they need resources. and so what you find is a highly-competitive environment where companies of china are in africa getting these resources. this a way -- in a way the government is sort of lagging behind these companies as they search and get these resources. the intensity of the chinese economic development is such that for the chinese to improve

their gdp, they have to use four times the level of resources that are used in the united states for the same amount of improvement. they need stuff. and so they're all over africa trying to get the material they really need to promote their economic development. at the same time, china's full of competitive companies that are looking to sell things, and the chinese administration wants to have a balanced trade with africa. and they have one because all these chinese enterprises -- very competitive among one another -- are building things throughout africa, selling things. ask as you say, these migrants have gone to africa to sell these sorts of things. it's a very understandable way to keep the balance the chinese seek with africa. you can see the driving force isn't really to control africa, it's really to get the stuff and to make money at the same time. and there are several good books on this. american university has done an excellent book on this if you're interested in this topic, as you are interested. so the upshot of chinese

behavior vis-a-vis the united states and so fort, it's second -- so forth, it's secondary. and as a result there is collateral damage, if you will. there is a variety of things that are done that aren't very good. just a small point, i'm not sure the pla were the people that shot these people in zambia. i think it may have been guards of some sort. >> congressman payne, thank you for the question. i agree with mr. sutter. i do not believe there are pla soldiers in africa. i believe they are people out of the pla working for government-controlled security companies, and we've done a lot of of work on that in our commission. >> this ethiopia -- in ethiopia they were soldiers that actually were killed by the olf there in the ogadon region. >> i think they were u.n. peace keepers, united nations peace keepers. i'll look at that. >> all all right.

they were there protecting the oil reserves. >> i may be incorrect. china doesn't care about human rights in those countries, and they bring in their own labor and transfer no jobs what whatsoever to the african citizens, and that's a major dissatisfaction in africa. >> the gentleman's time has expired. i recognize mr. rohrabacher, the chairman-designate on the subcommittee of oversight. for five minutes. >> thank you very much. i'd like to thank you for having this hearing at this moment because we have to understand that as we speak our country is officially welcoming prime prest hu as if he had the same stature and acceptability here as a democratic leader. we welcome him the same as we do countries that are democratic and respect human rights. this is wrong. we should not be granting

monstrous regimes that are engaged with massive human rights abuses -- and in this case the world's worst human rights abuser is being welcomed to our white house with respect. now, what does that do to those people in china who are our only hope for a peaceful future with that large chunk of humanity? the people of china are hurricane's greatest allies. the people of china who want democracy, the people of china who want to respect human rights and are looking forward to a more humane system at peace with the world, those are our allies. what do we do to them when we welcome their oppressor, their murderer, the one who's murdering their children here to the united states with such respect? as we look at this visit with president hu, if our president follows suit the way our former

presidents have as well -- this isn't just president obama -- we are doing a great disservice not only to the people of china and to our future, the cause of peace, but we're doing a great disservice to the american people. because what's happening, we have for three decades permitted the regime in china, a monstrously human rights-abusing regime, to have trade benefits that we wouldn't give to democratic countries. we have built them with technological transfers, with investments. we have let them get away with murder economically as well as human rights, in the area of human rights. well, these are things we've got to call them to task for, or our situation will continue to deteriorate. we are now vulnerable to a regime that was weak 30 or 40 years ago. we are vulnerable to them. if we do not change our way of dealing with that regime, they will destroy the peace of the world, and we will be to blame for that.

not only the repression of their own people. so i'd like to ask mr. wortzel in particular, china now -- not only does it have a more peaceful stand to the rest of the world, we see claims slowly but surely, more land claims and sea claims coming out. china is making claims in the pacific that threaten korea, japan and the philippines. and commerce throughout that air. area. we see claim against india and vietnam and, frankly, let me just say our russian friends someday are going to wake up and find out that they are being, they have now become partners with some, with a country that means them great harm and is willing to take away territory. do you see any major threat to the peace of the world and the expanding territorial claims of china? ..

>> for that reason i think it is very important that both secretary clinton and secretary gates, pretty forceful stands on ensuring a peaceful resolution of these disputed claims in the south china sea and east china sea here i think it's very important that our military

works with and backs up japan even though we don't take a position on the disputed claims. >> let me just note that this government which we have bolstered with policies that we knew would make that country stronger under the idea it was more prosperous it would be more peaceful, that strategy hasn't worked. and this country is now the head of an alliance of rogue nations that threaten the peace and freedom of the entire world. >> the gentleman's time has expired i would like to recognize mr. sears of new jersey for five minutes. >> thank you, madam chair. as i read the newspaper, so the accounts i'm always fascinated by the statement that the chinese simply have different interests in many parts of the world than we do.

i think that that hides an awful lot. i do think that the chinese have a hidden agenda, and their agenda in my eyes is more like world domination. somehow, we go back 2000 years ago, and i think that they never lost that. but we seem to help them in their goals. they just fill a void where we are not. take north korea, for example. they do nothing. they do nothing and the use north korea to their benefit. the relationship of iran. all they do is just boost iran. and everywhere we seem to have a voice. i look at south america and i

see south america and many other businesses. i look at what they do in africa, the way they use in africa. i don't know, we just don't seem to get it. and i was just wondering, doctor, you've been a spokesman for human rights and the abuses that have gone on in china, do you still fear for your life or your family's life back home? >> yes. >> you still do. after all, these years. and some of the members that are here today, from so many other groups, i assume they also fear for their families. as they speak up against this, you know, this monster, that is developing before our eyes. i just wonder if you can comment on that. >> the chinese -- >> do your families still get threats back on? >> yes. my family members in china need

to report to the authorities on the database is. >> they have to report to the authorities on a regular basis? >> yet. that's why minimize my correspondence to them to minimize the trouble. for mike? may not be the worst. i think that many of my colleagues and family members are being -- i want to emphasize, the chinese, china has the largest department system in the whole world, and it is still able to put anybody in prison, disappear anybody, if they determined to do so. so they come, if not responsible, responsive to its own people, treat its own people harshly. so i was wondering, these kind will do any good in the rest of the world. so we have to keep asking this question once and once again. so when we come to the foreign policy to all of china, we

cannot forget these component. and i often hear many people in this country talking about mentality, so whatever you hear the word war, they will fear. so i don't understand. but my comment is we just cannot simply explained away component which can be described as cold war in the relationship between u.s. and the china. japan, south korea, taiwan. these countries are democratic, and these two countries, i mean u.s. and china, have fundamentally conflict in values, which you just cannot explain away. it will -- so there's a

component that can be called cold war. and the only difference is that u.s. and china have economic interest, dependence, that is cold war have not. u.s. has no such close economic relationship with former soviet union, eastern europe. but that's the only different element. but i ago what he says. china always has and in economic relationships with u.s. -- >> the gentleman sun has expired. thank you. i recognize mr. manzullo. >> thank you, madam chair. as i mentioned in my opening statement, manufacturing is the backbone of our economy in

northern illinois. this question is for mr. chang, but others on the panel are welcome to enter. i spent much of my time working with numerous small and medium-sized manufacturers that have been harmed in one way or another in china. most of the time the issue is stuff of intellectual property and piracy, which is the case of the wastewater treatment, in my district called aqua aerobics. we engage the chinese amnesty and asked them to anything and actually got a favorable ruling in the chinese courts on that issue. at times, but how many companies can pick up the phone and go to their congressmen to get a direct intervention on an obvious ip violation? other times it probably is more competent such as the case of the office of shorter maker, fellows. i think the number one paper shredder maker in this country. they are fighting a fierce battle in china, a joint venture

where they were locked out. inventory stolen, machine tools, business practices and ip. and if you are big you can succeed. but the small guys, the medium-sized manufacturers are having an extraordinary difficult time. and so, how do we encourage the national prevention local government in china to force the law and beyond rhetoric and grand themes, there's got to be a better way of dealing with china. i guess that's an easy question. >> right. i think the important thing that we have to do is start, as i said, let's diplomacy and away. but i also think we need to follow the approach of h.r. 2378 which is really to impose penalties whenever we see that there are violations of china's trade obligations. because this gives us immediate relief. if you talk about the province

of small manufacturers, they can't wait for the three or four years that it takes to get through a dispute resolution mechanism of the world trade organization. that is just not practical remedy for them. and that's why i think we need legislation which is tough, because when we do that the chinese will understand. they had reacted to pressure, and this is really about the only way i think we can do it in terms of saving small manufacturers. because their plight is not only important, it's also urgent. >> but sometimes it's kind of like whack a mole. i have testified twice before the itc on tires, recreation vehicle tires and automobile tires. once was on a surge in the other two were on dumping, illegal subsidies. and you get the remedies and they come right back again and all of a sudden someone does the same thing under a different name. it's over and over and over and over again, and these companies spend fortunes on attorney fees

trying to protect their property. can't there be a mechanism that our government can have, for lack of a better word, an 800 number, for people who are the options of piracy, that simply can't afford attorneys to go into battle for then? >> well, we certainly could do that in many ways. that would basically involve beefing up the commercial section of our embassy in beijing and consulates around china, but also in the department of commerce. this needs to be put at a higher priority that we have. normally what happens in trade disputes as you point out is you have this enormous litigation, and the united states really relies on injured parties to bring their case and to prosecuted. i think that your suggestion is an excellent one, which is that the government be much more proactive and to bring all sorts of proceedings, both internally

in the united states and through the wto because that's about the only way we can do it. we need to speed up the process because time i think is critical. >> i would look forward to meeting you in my office and put our heads together to try to come up with some type of remedy. >> i will be there. >> thank you very much. i yield back the rest of my time. >> thank you very much, mr. manzullo. proud to recognize the member from rhode island. welcome to our committee. >> a.q. madam chairwoman. i appreciate the opportunity to ask questions. my questions also relate to the impact of our relationship with china on american manufacturing. and i know i think it's been pretty clear to most of us that the chinese have really been willfully weak in addressing the theft of property and it's been present promise for american businesses but i would like to hear your thoughts on what actions we might take to rid protect american businesses from the theft of intellectual property, the seizing of aspects

and joint ventures and the refusal to meet contractual obligations. and related to that, i'm particularly interested in your thoughts on what mechanisms we have come up her ticket to the opportunities that exist for production development of renewable energy. i know there was a recent complaint wild against the chinese subsidy policy which the administration contends favor chinese producers of wind, wind equipment, and that have been examples where those kinds of concepts have been resolved at the u.s.-china joint commission of commerce and trade. so ensure that unwanted what you think those are an effective place or solution, if there are changes we need to make that really will help american manufacturers to be sure we are enforcing in every way policies that protect american manufacturers and the jobs connected to those manufacturers. >> we really have to problems. one of them is china's internal role such as the new indigenous

innovation product rules that president hu jintao has been pushing. those would basically force a transfer of american intellectual property to joint venture companies for anyone who wants to sell to government or state enterprises. and that is really an issue where the united states itself in its discussions with china. the obama administration has put us up at a higher priority because it is so important. and i think it's a question of these need to be discussed all the time. the other point which as you raise, is the outright theft. this is extremely difficult because you can't litigate in a chinese court because the courts are controlled by the party. and often controlled by local interest that have been really the culprit. and so the only way to united states can deal with this issue really is that the commercial section in the embassy and in the various consulates, make it known to both national and provincial authorities that this is a case which is of importance

to the united states which oftentimes is sending the ambassador or the consulate general to a court case to show the presence of washington and it's important to us. but this is extremely very difficult. >> mr. sutter, do you have anything? >> i would agree. i think you need to keep the pressure on. it has to cost of the chinese i think you are advocating an approach, you're pushing on an open door with the obama administration, it seems to me. listening to the secretary of commerce and the usgr, they very much want to do this kind of thing. maybe they need more people. maybe they need some funding from the congress to help in this regard, but i think there's a broad sentiment in the obama government that they should be done, just what mr. chang was saying. unique case by case, you need to work these issues. you need to pressure in a way that is credible.

and i think that a high level of attention to it with officials is a way to go, and i think that's, as i say, win some support from the usgr and the commerce department. >> make you very much. i yield back the bounce of my time. >> mr. cicilline gets back. thanks for that. recognize mr. rivera of florida for five minutes. >> a key very much madam chair and. i'm going to ask about to either nations, cuba and taiwan. one, an island prison and the other a bastion of democracy surrounded by a fortress of journey. and we will start with cuba. given china's involvement, and this question we will throw out for doctor wartsilla. given china's involvement in cuba, i wonder if you could, it was -- give us your thoughts as to china's geopolitical intentions in cuba, perhaps as

establishing another beachhead in latin america, generally you can specifically what you believe china is up to with regard to oil drilling given information that has been published regarding the companies involved in drilling also have a a a nexus. so generally speaking, china's geopolitical interest in cuba, and specifically with regard to oil drilling. >> thanks for the question. first of all, china has taken over, as i understand it, the entire signals computer complex that the soviet union had in cuba. so there is, without question, a military and intelligence purpose for their relationship. i think part of it is also

support for another socialist state. and i think you can link chinese activities with venezuela and support there. there's support in cuba and for cuba. with respect to resources, i think they would be very happy to extract resources any way they could get it. but if you look at the this is a chinese military leaders and political leaders, i always ask myself why the head of china's strategic rocket forces, second artillery, is visiting cuba. we are not going to be in another cuban missile crisis, but there's certainly something to military relationship going on there, and the same goes with venezuela. in some cases, their

relationships in central america and latin america are related to diplomatic relations with taiwan. and they have managed to wean a couple of countries away from recognition of taiwan toward recognition to china. and that's part of it. i think it's fair to say that, and i sum it up, that they should recognize the monroe doctrine. >> thank you very much. with respect to taiwan, i will correct this question to mr. chang, and the issue of the f-16s, and this administration's decision, or decisions, previous decisions on prolonging shipment of f-16's to want and what you believe is your perspective on how this affects the taiwan relations act and fulfillment of the taiwan relations act. >> i would love to talk about this topic, but sitting next to the world's expert.

so perhaps -- >> thank you. >> taiwan's air force really needs modernize aircraft. the debate is f-16s which has a longer range and could be used for deeper strikes inside china if the military chose to do that, versus modernizing the ap. when i talk to aviation engineers they think you could take the ab, put in brand-new radar, targeting equipment, it needs no refrigeration to be able to handle that, and they would then have a very, very capable aircraft. it's not one that would necessarily satisfy the taiwan's legislature, and it would still be a fight over the programming for the weapons systems and avionics. they want program codes. we will not transfer them. we never do. so they need it.

if you made the decision, i don't think there's any guarantee that they would accept the way we make it. and then there's the political cost of approving a brand-new system that china would object to. they will object no matter what we do, but they need aircraft, and i think they have to have that addressed. >> thank you, madam chairwoman. >> pleased to recognize mr. conley of virginia. welcome back, my friend. >> thank you so much, madam chairman. and thank you for your service. i want to thank the panel, and particularly box elder. bob, we work together when i was in the senate foreign relations committee. great to see you on the other side of the table. let me ask you, bob, understanding serious, serious human rights issues in china and lots of other issues that we're

concerned about that event enumerated here, in your view given the fact that had a level of relations with the head of state of the country notwithstanding, is a mistake for this administration to receive the president of china? >> thank you, congressman. it's great to be here. i think what you find is that with a very complicated and interdependent type of relationship. we have so many priorities. we have to balance them. and as you've indicated, every president that we have had since nixon has done this. and so people can't object in various ways and had very good reasons for this, but obviously publics -- republicans and democratic presidents, they prioritize these things and they say no, this is the best way to go. we may be at a crossroads now. we may have to change the situation. china may be trying to dominate

the world with this type of thing. i don't think so. i think china has too many problems. i think the united states is leading power in the world, and it's going to stay that way for some time so it gives me a lot of confidence in this situation. but i think about my is you have to figure out where to come down on these priorities. and i think as you have indicated, every president of the united states has endorsed this kind of approach. >> thank you. mr. wortzel, you're talking a little earlier about taiwan's defense capability, and you said they're in bad need of an upgrade of the fighter aircraft. is there any reason to believe that the government of taiwan is not capable of defending itself in the event of a military incursion? >> i don't think that that is the issue. i think that the issue is how capable would they be doing it, and what form might any attack

take. they would have a hard time defending against all those 1100 ballistic missiles, which could do a lot of damage. i think it would be very hard-pressed if there were massive special operations insertions into taiwan to disrupt infrastructure. they themselves could do more to harden some of their airfields and storage facilities. i think they have been woefully deficient in the way they tripled in -- dribbled in the command-and-control and data links for their current forces. i mean, if i -- i said this to their minister of defense. if there's one thing you could do to immediately improve your capabilities, it is take the whole datalink and package and link all your ground and air

assets so they could take part in cooperative targeting and engagement. but they are doing this. they are also developing their own multiple launch rocket systems. they probably use assistance with precision guided -- >> let me ask you another part of that given the limitation of time. we have one minute. is their -- one of the things that i was concerned summary about the taiwan strait is there's a misunderstanding about the nature of the united states commitment to the security of taiwan. in your view does the current government of china fully understand the nature of the u.s. commitment to taiwan? >> i think the government of china does. i think at times some of the political actors in taiwan misinterpret our support as -- i mean, i had a legislator from taiwan safe we are glad to get this 16 billion arms package as

far as we concerned, its $16 billion insurance policy that you will come to our defense. they have to be ready to defend themselves. >> mr. chairman, we have 20 seconds. did you want to answer that? >> i think with the remilitarization of chinese politics and policy, there's a danger that beijing does not understand our commitment, and thinks that we will not defend taiwan. >> thank you. >> thank you so much, mr. connolly. i would like to recognize congresswoman commerce of north carolina. so pleased that you have selected our committee. welcome. >> thank you, madam chairman. i would like to thank our distinguished panel, and i also like to reach out to the individuals and family members of all the human rights violations in china. you are a constant reminder to us that we need to be vigilant around the world to human rights violations and how fortunate we are here in united states.

my question is for dr. wortzel and doctor sutter, and dr. wortzel, do you prefer to be referred to as colonel, doctor? >> it doesn't matter. these are very polite. i've been called a lot of other things. >> along the security issues we have been discussing, last september a chinese fishing boat thought to be a spy vessel deliberately collided with some japanese coast guard vessels in the vicinity of the island. tensions rose when unprecedented level before the chinese boat captain was released. how close did the two sides come to military conflict wrecks and in your opinion, what are the implications of the united states given our treaty obligations with japan? >> i don't think in that instance they came close to military conflict, but it is a very serious diplomatic.

but i think these things can escalate, and could escalate if there are other incidents. we have a treaty obligation with japan. it's a very, very important ally, and without question if japan got into a conflict, military conflict with china, we would be at their side. i think that pacific command, commander, the secretary of state, have taken very strong and principled positions, not recognizing the sovereignty of the island, the islands, but at the same time ensuring that the chinese unta