U.S.-China Commission releases Annual Report to Congress.

The U.S.-China Commission's (USCC) 2005 Annual Report to Congress was released Nov. 10. The report, approved by USCC members by an 11-1 vote, criticized the Bush Administration for not having a coherent strategy in dealing with China. The commission urges Congress to fill this "policy vacuum" with a clearer and more hard line approach to U.S.-China relations.

USCC commissioners pointed to the Administration's focus on the issue of terrorism as a major factor in the lack of a clear U.S. policy toward China. The commission found that China is not fulfilling most of its commitments as a charter member of the World Trade Organization. As China continues to manipulate the yuan, the commission supports the passage of the Graham-Schumer China Free Trade Bill that would impose across-the-board tariffs on Chinese goods if China does not revalue its currency.

Also included in the report were concerns about China's offensive military modernization. The report found, "China is in the midst of an extensive military modernization program aimed at building its force projection capabilities to confront U.S. and allied forces in the region." The commission also expressed concern over the approval process for foreign acquisitions of U.S. companies. China has considerable amount of cash and could be tempted to start buying up U.S. companies, adding to national security concerns.

The commission was created in October 2000 to monitor, investigate and submit an annual report to Congress on the national security implications of the bilateral trade and economic relationship between the U.S. and the People's Republic of China.

The 2005 Report to Congress of the U.S.-China Economic and Security Review Commission is available at www.uscc.gov.