US-China Economic and Security Review Commission, “NSD BioGroup, LLC: “Research Report on Chinese High-Tech Industries,” 2008

Executive Summary

In recent years there has been increasing concern with respect to the People Republic of China’s (PRC) intensified activities and efforts towards selected high technology industries (“Sunrise”) sectors - namely Biotechnology, Nanotechnology, and Electro- Optics of the PRC science and technology (S&T) industries. Issues driving interest in these areas are numerous and varied.

This report attempts to shed light and insight on specific issues addressing potential implications to U.S. military, economic, and national security as China continues its accelerative pace in securing and developing advanced technologies. In light of ongoing reconfigurations of the economic landscape on a worldwide scale, as a result of unprecedented constraints and collapses of financial markets and credit liquidity, insolvency of numerous businesses and operations, and a severe loss of collective confidence, though earlier priorities of overseas trends may have been adjusted accordingly, they still remain on the forefront. National concern in the United States has arisen that the country’s once unparalleled position as leader in science and technology has been eroded by a number of factors. These external and internal factors include the globalization of S&T, the rise and development of science centers and technology zones in developing countries such as China and India, and the perception that the U.S. is not investing enough in its future given the existing pressures on its complex and interconnected S&T enterprise. It has been well documented and recorded that a loss of this leadership could potentially hurt the U.S. economy, living standards, and national security. Some would even argue that we are witness of the beginning of that erosion accelerated by the existing financial and economic upheaval.

The U.S. China Economic and Security Review Commission has requested NSD Bio Group, LLC to produce a one-time report addressing particular “Sunrise” sectors of the PRC, recognized as key drivers contributing to China’s widening economic, financial, and national security development. The selected geographic areas covered in this report, reflects a desire to present a fair representation of the state of R&D on these specific sectors within the PRC in both well known and more established areas (Beijing, Shanghai, and Tianjin), as well as in lesser known, but emerging hubs of S&T activity (Harbin and Kunming) to the Commission.

This report draws on and adds to the many papers, reports, public hearings, and testimonies previously submitted and witnessed by the Commission as part of its longstanding mission to monitor and report to Congress, the economic and national security dimensions of the United States’ trade and economic ties with the PRC.

To read the full report please click [HERE]