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Overview  
The US-China Economic and Security Review Commission is responsible for monitoring and investigating the bilateral trade relationship between the United States and the People’s Republic of China. The commission submits an annual report to Congress on the national security implications of this relationship, and it makes recommendations for possible legislative and administrative action. The commission directs its research in eight main areas, including weapons proliferation, economic transfers, energy, American capital markets, regional economic and security impacts, US-China bilateral programs, WTO compliance, and the implications of restrictions on speech and access to information in China.
 
History  

The US-China Economic and Security Review Commission was created on October 30, 2000, when the Floyd D. Spence National Defense Authorization Act was signed into law. This new commission absorbed the staff and facilities of the former US Trade Deficit Review Commission. The originating legislation for the US-China Economic and Security Review Commission was eventually amended several times. In 2002, the Treasury and General Government Appropriations Act made changes to the employment status of commission staff. In 2003, Division P of the “Consolidated Appropriations Resolution” changed the commission’s name, the terms of commissioners and responsibilities of the commission. In 2005, a regulation changed the responsibilities of the commission and the applicability of the Federal Advisory Committee Act. And in 2008, another rule change altered the annual report date from June to December.

 

 

What it Does  

The US-China Economic and Security Review Commission is charged with monitoring and investigating the United States’ bilateral trade relationship with the People’s Republic of China. Each year, the commission submits a report to Congress, outlining any national security issues raised by the economic relationship between China and America. The report makes recommendations, where appropriate, for future legislative and administrative action.
 
Legislation passed on November 22, 2005, amended the responsibilities of the commission to focus in eight main areas, including proliferation practices, economic transfers, energy, American capital markets, regional economic and security impacts, US-China bilateral programs, WTO compliance, and the implications of restrictions on speech and access to information in China.
 
The commission is comprised of 12 members, three of whom are selected by each majority and minority leader of the Senate, and the speaker and the minority leader of the House. Each commissioner serves a two-year term.
 
Commissioners receive support from a staff of professional and administrative staff with extensive backgrounds in trade, economics, weapons proliferation, foreign policy and US-China relations. Some are fluent or proficient in Chinese (Mandarin) and most have significant prior working and traveling experience in China and Taiwan. The staff is headed by T. Scott Bunton, Commission Executive Director.
 
Current Commissioners
Larry M. Wortzel , Chairman
Former director of the Asian Studies Center and vice president for foreign policy at the Heritage Foundation; former director of the Strategic Studies Institute of the US Army War College; former Army Attaché at the American Embassy in China. Reappointed by House Speaker J. Dennis Hastert on December 8, 2006, for a third term expiring December 31, 2008. Unanimously approved as commission chairman for the 2008 Report Cycle, he previously served as the commission chairman for the 2006 report cycle.
 
Carolyn Bartholomew, Vice Chairman
Former chief of staff, counsel, legislative director and foreign policy advisor to House Speaker Nancy Pelosi; former staff member on the House Permanent Select Committee on Intelligence. Reappointed by Pelosi on December 19, 2007, for a two-year term expiring December 31, 2009. Bartholomew served as the commission vice chairman and chairman for the 2006 and 2007 report cycle, respectively.
 
Daniel A. Blumenthal, Vice Chairman
Resident fellow in Asian studies at the American Enterprise Institute for Public Policy Research. Previously, Blumenthal was senior director for China, Taiwan, Hong Kong and Mongolia in the Office of the Under Secretary of Defense for International Security Affairs during the first George W. Bush administration. Reappointed by Senate Republican Leader Mitch McConnell for a two-year term expiring December 31, 2009. Previously served as vice chairman for the 2007 report cycle.
 
Peter T.R. Brookes
Senior fellow for national security affairs and director of the Asian Studies Center at the Heritage Foundation. Previously served in the Bush administration as the Deputy Assistant Secretary of Defense for Asian and Pacific Affairs; former Republican staff member of the House Committee on International Relations. Reappointed by House Minority Leader John Boehner on December 6, 2007, for a two-year term expiring December 31, 2009.
 
Mark T. Esper
Executive vice president of the Aerospace Industries Association of America and former director of national security affairs for Senate Majority Leader Bill Frist (R-TN). Appointed by Senate Republican Leader Mitch McConnell on March 20, 2007, for a two-year term expiring December 31, 2008.
 
Jeffrey L. Fiedler
President of Research Associates of America, a non-profit labor research organization. Previously he was the elected president of the Food and Allied Service Trade Department, AFL-CIO (“FAST”). Reappointed by House Speaker Nancy Pelosi on December 19, 2007, for a term expiring December 31, 2009.    
 
Patrick A. Mulloy
Adjunct professor of international trade law at Catholic University and George Mason University law schools; former Assistant Secretary of Commerce for Market Access and Compliance; former general counsel of the Senate Banking Committee. Appointed to the commission by Senate Majority Leader Harry Reid (D-NV) for a two-year term expiring December 31, 2009. Mulloy previously served as a member from April 2001 to December 31, 2006.
 
William A. Reinsch
President of the National Foreign Trade Council; former Under Secretary of Commerce for Export Administration; former legislative assistant to Senator John Heinz (R-PA) and Senator John D. Rockefeller, IV (D-WV). Reappointed by Senate Democratic Leader Harry Reid for a fifth term expiring December 31, 2009.
 
Dennis C. Shea
Government and public policy attorney, former director of policy for the Bob Dole for President Campaign, deputy chief of staff to Senator Elizabeth Dole, and Assistant Secretary for Policy Development and Research at the Department of Housing and Urban Development. Appointed by Senate Minority Leader Mitch McConnell (R-KY) on February 17, 2007, for a two-year term expiring December 31, 2008.
 
Daniel M. Slane
Founder and co-owner of the Slane Company with extensive international business experience. Slane was appointed to the commission by House Minority Leader John Boehner (R-OH) on December 10, 2007, for a two-year term expiring on December 31, 2009.
 
Peter Videnieks
Former advisor on foreign affairs and energy issues to Senator Robert C. Byrd (D-WVA); previously an IRS revenue officer and contracting officer (NASA, Department of Justice, and US Customs). Videnieks was appointed by Senate Majority Leader Harry Reid (D-NV) on January 12, 2007, for a two-year term expiring December 31, 2008.
 
Michael R. Wessel

President of The Wessel Group Inc.; former Counsel to Congressman Richard A. Gephardt (D-MO). Currently serves as a member on the board of directors of the Goodyear Tire and Rubber Co. Reappointed by House Speaker Nancy Pelosi (D-CA) on December 7, 2006, for a fourth term expiring December 31, 2008.

Where Does the Money Go  

The $3 million annual budget is currently spent on support and administrative staff, as well as the associate director’s salary, office and communications expenses.

 

Controversies  

Report Reveals Chinese Threat to U.S. Technology
In 2007, the US-China Economic and Security Review Commission reported that Chinese spying in America is the leading threat to American technology, especially through cyber attacks. The report recommended that lawmakers finance counterintelligence efforts to stop the Chinese from stealing US technology and manufacturing expertise, and it called for the US to work closely with China to promote energy security and deal with environmental problems such as climate change and pollution.
U.S. Targets Weapons Technology Theft (by Jason Ryan, Pierre Thomas, Jack Date and Theresa Cook, ABC News)
 
University of Maryland Professor Warns of Dangers from Sovereign Wealth Funds
In February 2008, Peter Morici, a professor at the University of Maryland’s Robert H. Smith School of Business, warned the commission against sovereign wealth funds like the China Investment Corporation (CIC), which could have the capacity to influence important US investment decisions. These decisions included the choice of location of major production facilities in the United States or abroad, the location of R&D facilities, and the structure of investments by US firms that may compete with companies domiciled in the home countries of sovereign wealth funds. Morici wondered why the US would permit a foreign sovereign fund to invest in US companies and wield influence when it does not permit the US Social Security fund to do the same.
Investments by Sovereign Wealth Funds in the United States (by Peter Morici, University of Maryland)
U.S. critics uneasy about China's investment goals (by Rachelle Younglai and Jim Wolf, Reuters)
 
New Computers a Threat to National Security
In March 2006, members of the US-China Economic and Security Review Commission reportedly voiced concerns that Lenovo's involvement in a $13million contract to upgrade the commission’s computers was a threat to national security. Lenovo is a Chinese computer maker that had recently purchased IBM’s personal computer business. Lenovo rejected the claims, saying the commission had fully investigated the company’s operations before awarding the contract. 

 

 

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Table of Contents

Founded: 2000
Annual Budget: $3 million
Employees: 12

United States-China Economic and Security Review Commission
Wortzel, Larry
Chairman
Larry M. Wortzel has served as chairman of the US-China Economic and Security Review Commission since December 2002. A graduate of the Armed Forces Staff College and the US Army War College, Wortzel earned his bachelor’s from Columbus College, Georgia, and his MA and PhD from the University of Hawaii.
 
After three years in the Marine Corps, Wortzel enlisted in the Army in 1970. His first assignment with the Army Security Agency took him to Thailand, where he focused on Chinese military communications in Vietnam and Laos. Within three years, he graduated Infantry Officer Candidate School, as well as both Airborne and Ranger schools. After serving four years as an infantry officer, he shifted to military intelligence and served in the US Pacific Command as a political-military affairs analyst from 1978 to 1982.
 
The following year, he attended the National University of Singapore, where he studied advanced Chinese and traveled in China and Southeast Asia. Wortzel subsequently worked for the Under Secretary of Defense for Policy, developing counterintelligence programs to protect emerging defense technologies from foreign espionage. In addition, he managed programs to gather foreign intelligence for the Army Intelligence and Security Command.
 
From 1988 to 1990, Wortzel was Assistant Army Attaché at the American Embassy in China, where he reported on the Tiananmen Massacre. After assignments as an Army strategist and managing Army intelligence officers, he returned to China in 1995 as the Army Attaché. In December 1997, he became a faculty member of the US Army War College, serving as director of the Strategic Studies Institute. He retired from the Army as a colonel, after 32 years in the service.
 
Wortzel served as the director of the Asian Studies Center and vice president for foreign policy at the Heritage Foundation from 1999 to 2005.
 
 
 


 
 
 
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