U.S.-China Economic and Security Review Commission, "Hearing and Roundtable: China’s Internal Dilemmas," February 25, 2011

February 25, 2011
562 and 116 Dirksen Senate Office Building
First Street and Constitution Avenue, NE
Washington, DC 20003

Hearing Co-Chairs: Chairman William A. Reinsch and Commissioner Robin Cleveland

Prepared Statement of Chairman William A. Reinsch

Good Morning. Welcome to today’s hearing on “China’s Internal Dilemmas.” As this year's Chairman I want to thank you all for joining us today. We appreciate your attendance and we encourage you to attend our other hearings throughout the year.

The hearing and roundtable will examine the social, economic, and political roots of protest in China and the Chinese Communist Party’s response; the major challenges to stability in China; and implications for the United States. I would ask our excellent panelists to limit their opening statements to seven minutes, please. A complete version of the submitted testimony will be included in the hearing record.

For those who are new to our hearings, we are a bipartisan Commission composed of 12 members, six of whom are selected by the Majority and Minority Leaders of the Senate, and six from the Speaker and the Minority Leader of the House. Commissioners serve two-year terms.

Congress has given our Commission the responsibility to monitor and investigate the national security implications of bilateral trade and economic relations between the United States and China. We fulfill our mandate by conducting hearings and undertaking related research as well as sponsoring independent research. We also travel to Asia and receive briefings from other U.S. government agencies and departments. We produce an annual report and provide recommendations to Congress for legislative and policy change.

This is the second hearing for 2011; we will also examine China’s national security policy, China’s investment policy and Chinese foreign policy.

I now turn the microphone over to my hearing co-chair, Commissioner Cleveland.

Prepared Statement of Commissioner Robin Cleveland

I want to thank everybody for being here today. I would especially like to thank Senator Ben Nelson and his staff for helping us secure today’s hearing venue.

This hearing is focused on analyzing and understanding the internal problems in China that jeopardize the control by the central government and the Chinese Communist Party, and the implications for the United States. The topic is particularly timely.

China has made significant economic strides during the past thirty years, leading to the rapid development of its national infrastructure, expansion of industry, and higher standards of living. For the Chinese government, political legitimacy is linked with economic growth. Significant challenges remain, however. Growing income inequality, migrant labor pressures, and corruption, among other problems, are signs of China’s growing citizen dissatisfaction.

News of political unrest in the Middle East has been heavily censored in China, hinting at Chinese government insecurity and concern over domestic threats to its legitimacy. At today’s hearing we will have an opportunity to explore whether any of the challenges faced by China’s society and economy have the potential to challenge Chinese government legitimacy.

Today we will try something a little different. The two formal hearing panels will be followed by a roundtable discussion in the afternoon. Chairman Reinsch will moderate. We ask all our witnesses and members of the audience to join us for the roundtable in Room 116 of the Dirksen Senate Office Building after Panel II concludes.

The transcript of today’s hearing and the panelists’ written testimony will be posted on our website and will be used in the preparation of our annual report. The Commission will take all views into account when it later formulates its own recommendations to the Congress. We appreciate the work our distinguished witnesses have put into preparing their statements, and we thank them for being here to testify.

Hearing Co-Chairs Opening Statements
Chairman William A. Reinsch
Commissioner Robin Cleveland

Panel I: Roots of Protest and the Party Response
Dr. Elizabeth Economy, C.V. Starr Senior Fellow and Director for Asia Studies, Council on Foreign Relations, New York, NY
Dr. Martin K. Whyte, Professor of Sociology, Harvard University, Cambridge, MA
Dr. Murray Scot Tanner, China Security Analyst, CNA, Alexandria, VA

Panel II: Major Challenges to China’s Internal Stability
Dr. Yukon Huang, Senior Associate, Carnegie Endowment for International Peace, Washington, DC
Dr. Steven Dunaway, Adjunct Senior Fellow for International Economics, Council on Foreign Relations, Washington, DC

ROUNDTABLE — China’s Internal Dilemmas and Implications for the United States
Dr. Elizabeth Economy, C.V. Starr Senior Fellow and Director for Asia Studies, Council on Foreign Relations, New York, NY
Mr. James Mann, Foreign Policy Institute Author-in-Residence, Johns Hopkins University, SAIS, Washington, DC
Dr. Yukon Huang, Senior Associate, Carnegie Endowment for International Peace, Washington, DC
Dr. Steven Dunaway, Adjunct Senior Fellow for International Economics, Council on Foreign Relations, Washington, DC
Dr. Martin K. Whyte, Professor of Sociology, Harvard University, Cambridge, MA
Dr. Murray Scot Tanner, China Security Analyst, CNA, Alexandria, VA