This report focuses on the potential implications of China's naval modernization for future required U.S. Navy capabilities. This report is based on unclassified open-source information, such as the annual Department of Defense (DOD) report to Congress on China's military power, and published reference sources such as Jane's Fighting Ships.

China has experienced a sharp rise in the inflow of so-called "hot money," foreign capital entering the country supposedly seeking short-term profits, especially in 2008. Chinese estimates of the amount of "hot money" in China vary from $500 billion to $1.75 trillion. The influx of "hot money" is contributing to China's already existing problems with inflation. Efforts to reduce the inflationary effects of "hot money" may accelerate the inflow, while actions to reduce the inflow of "hot money" may threaten China's economic growth, as well as have negative consequences for the U.S. and global economy.

China has a determined, yet still modest, program of civilian space activities planned for the next decade. The potential for U.S.-China cooperation in space -- an issue of interest to Congress -- has become more controversial since the January 2007 Chinese anti-satellite test. Some argue that Chinese capabilities now threaten U.S. space assets in low earth orbit. Others stress the need to expand dialogue with China. This report outlines recent activities and future plans in China's civilian space sector. It also discusses benefits and trade-offs of possible U.S.-China collaboration in space, as well as several options to improve space relations, including information exchange, policy dialogue, and joint activities.

U.S.-China economic ties have expanded substantially over the past several years. China is now the third largest U.S. trading partner, its second largest source of imports, and its fourth largest export market. However, U.S.-China commercial ties have been strained by a number of issues, including a surging U.S. trade deficit with China, China's refusal to float its currency, and failure to fully comply with its World Trade Organization (WTO) commitments, especially its failure to provide protection for U.S. intellectual property rights (IPR). This report explores these issues in detail, especially concerning the lack of protection for U.S. IPR.

After the terrorist attacks on September 11, 2001, the United States faced a challenge in enlisting the full support of the People’s Republic of China (PRC) in counter-terrorism. This effort raised short-term policy issues about how to elicit cooperation and how to address China’s concerns about military action (Operation Enduring Freedom). Longer-term questions have concerned whether counterterrorism has strategically transformed bilateral relations and whether China’s support has been valuable and not obtained at the expense of other U.S. interests.

This report discusses the nature and scope of the Chinese space program. The People's Republic of China launched its first astronaut, or "taikonaut," Lt. Col. Yang Liwei, on October 15, 2003 Beijing time (October 16 Eastern Daylight Time). China thus became only the third country, after Russia and the United States, able to launch humans into orbit. Lt. Col. Yang landed on October 16 Beijing time (October 15 EDT) after making 14 orbits (21 hours and 23 minutes).

China’s economy remained relatively healthy in 2002, despite economic slowdowns in other parts of the world. Foreign investment continued to pour into China, and the Chinese government effectively used public spending to boost the economy. However, painful economic reforms will be necessary to keep the economic strong in 2003 and beyond. The recent outbreak in early 2003 of a very contagious virus called SevereAcuteRespiratory Syndrome (SARS) in China appears to have had a short-term negative impact on the Chinese economy.

This report discusses the background information and most recent development in U.S.-China relations since mid-1996. Since the early 1990s, U.S.-China relations have followed an uneven course, with modest improvements overshadowed by various recurring difficulties and setbacks. Longstanding bilateral difficulties have included U.S. problems with the PRC’s worsening human rights record, growing tensions over the PRC’s southern military build-up opposite Taiwan and Taiwan’s political status, and continued controversy over allegations of Chinese proliferation of weapons to unstable regimes.

This report provides a brief background analysis and recent developments regarding China’s Proliferation of Weapons of Mass Destruction and Missiles. The report includes topics such as: Recent Proliferation Transfers, chemical, nuclear, and missile technology sales to Iran, Pakistan, Libya, Syria, trade controls, nonproliferation and arms control.

China’s economy continues to be a concern to U.S. policymakers. On the one hand, China’s economic growth presents huge opportunities for U.S. exporters. On the other hand, the surge in Chinese exports to the United States has put competitive pressures on many U.S. industries. Many U.S. policymakers have argued that greater efforts should be made to pressure China to fully implement its WTO commitments and to change various economic policies deemed harmful to U.S. economic interests, such as its currency peg and its use of subsidies to support its SOEs. In addition, recent bids by Chinese state-owned firms to purchase various U.S. firms have raised concerns among Members over the impact such acquisitions could have on U.S. national and economic security.