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China–South Asia Relations Hearing Before the U.S

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China–South Asia Relations Hearing Before the U.S CHINA–SOUTH ASIA RELATIONS HEARING BEFORE THE U.S.-CHINA ECONOMIC AND SECURITY REVIEW COMMISSION ONE HUNDRED FOURTEENTH CONGRESS SECOND SESSION THURSDAY, MARCH 10, 2016 Printed for use of the United States-China Economic and Security Revie w Commission Available via the World Wide Web: www.uscc.gov UNITED STATES-CHINA ECONOMIC AND SECURITY REVIEW COMMISSION WASHINGTON: 2016 ii U.S.-CHINA ECONOMIC AND SECURITY REVIEW COMMISSION HON. DENNIS C. SHEA, Chairman CAROLYN BARTHOLOMEW, Vice Chairman Commissioners: PETER BROOKES HON. JAMES TALENT ROBIN CLEVELAND DR. KATHERINE C. TOB IN HON. BYRON L. DORGAN MICHAEL R. WESSEL JEFFREY L. FIEDLER DR. LARRY M. WORTZEL HON. CARTE P. GOODWIN MICHAEL R. DANIS, Executive Director The Commission was created on October 30, 2000 by the Floyd D. Spence National Defense Authorization Act for 2001 § 1238, Public Law No. 106-398, 114 STAT. 1654A-334 (2000) (codified at 22 U.S.C. § 7002 (2001), as amended by the Treasury and General Government Appropriations Act for 2002 § 645 (regarding employment status of staff) & § 648 (regarding changing annual report due date from March to June), Public Law No. 107-67, 115 STAT. 514 (Nov. 12, 2001); as amended by Division P of the “Consolidated Appropriations Resolution, 2003,” Pub L. No. 108-7 (Feb. 20, 2003) (regarding Commission name change, terms of Commissioners, and responsibilities of the Commission); as amended by Public Law No. 109- 108 (H.R. 2862) (Nov. 22, 2005) (regarding responsibilities of Commission and applicability of FACA); as amended by Division J of the “Consolidated Appropriations Act, 2008,” Public Law Nol. 110-161 (December 26, 2007) (regarding responsibilities of the Commission, and changing the Annual Report due date from June to December); as amended by the Carl Levin and Howard P. “Buck” McKeon National Defense Authorization Act for Fiscal Year 2015, P.L. 113-291 (December 19, 2014) (regarding responsibilities of the Commission). The Commission’s full charter is available at www.uscc.gov. iii April 21, 2016 The Honorable Orrin Hatch President Pro Tempore of the Senate, Washington, D.C. 20510 The Honorable Paul Ryan Speaker of the House of Representatives, Washington, D.C. 20515 DEAR SENATOR HATCH AND SPEAKER RYAN: We are pleased to notify you of the Commission’s March 10, 2016 public hearing on “China–South Asia Relations.” The Floyd D. Spence National Defense Authorization Act (amended by Pub. L. No. 113-291) provides the basis for this hearing. At the hearing, Commissioners received testimony from the following witnesses: Ms. Lisa Curtis, Senior Research Fellow, Heritage Foundation; Ambassador James F. Moriarty, Senior Advisor for South Asia, BowerGroupAsia; Dr. David Brewster, Senior Research Fellow, National Security College, Australian National University; Mr. Jeff M. Smith, Director, Asian Security Programs, and Kraemer Strategy Fellow, American Foreign Policy Council; Dr. Tanvi Madan, Director, The India Project, and Fellow, Foreign Policy, The Brookings Institution; Dr. Deepa M. Ollapally, Research Professor of International Affairs, and Associate Director, Sigur Center for Asian Studies, Elliott School of International Affairs, George Washington University; Mr. Andrew Small, Transatlantic Fellow, German Marshall Fund of the United States; Dr. Daniel S. Markey, Senior Research Professor in International Relations and Academic Director, Global Policy Program, Johns Hopkins University School of Advanced International Studies and Adjunct Senior Fellow for India, Pakistan, and South Asia, Council on Foreign Relations; and Ms. Shamila Chaudhary, Senior South Asia Fellow, New America; Senior Advisor, Johns Hopkins University School of Advanced International Studies. This hearing explored the economic, geopolitical, and security elements of China’s South Asia strategy, and examined in detail China’s relations with India and Pakistan in particular. In addition, the hearing assessed how China’s evolving engagement in the region impacts U.S. interests. We note that prepared statements for the hearing, the hearing transcript, and supporting documents submitted by the witnesses are available on the Commission’s website at www.USCC.gov. Members and the staff of the Commission are available to provide more detailed briefings. We hope these materials will be helpful to the Congress as it continues its assessment of U.S.-China relations and their impact on U.S. security. The Commission will examine in greater depth these issues, and the other issues enumerated in its statutory mandate, in its 2016 Annual Report that will be submitted to Congress in November 2016. Should you have any questions regarding this hearing or any other issue related to China, please do not hesitate to have your staff contact our Congressional Liaison, Anthony DeMarino, at (202) 624-1496 or via email at [email protected]. Sincerely yours, Hon. Dennis C. Shea Carolyn Bartholomew Chairman Vice Chairman iv CONTENTS THURSDAY, MARCH 10, 2016 CHINA –SOUTH ASIA RELATIONS Opening Statement of Commissioner Katherine Tobin (Hearing Co-Chair) .......................................................................................................01 Prepared Statement .........................................................................................................03 Opening Statement of Commissioner Dennis Shea (Hearing Co-Chair) .......................................................................................................04 Prepared Statement .........................................................................................................05 Panel I: China’s South Asia Strategy: Drivers, Reactions, and Implications Panel I Introduction by Commissioner Dennis Shea (Hearing Co-Chair) .......................................................................................................06 Statement of Ms. Lisa Curtis Senior Research Fellow, Heritage Foundation ...............................................................07 Prepared Statement .........................................................................................................09 Statement of Ambassador James F. Moriarty Senior Advisor for South Asia, BowerGroupAsia .........................................................20 Prepared Statement .........................................................................................................23 Statement of Dr. David Brewster Senior Research Fellow, National Security College, Australian National University ...32 Prepared Statement .........................................................................................................35 Panel I: Question and Answer............................................................................................43 Panel II: China and India Panel II Introduction by Commissioner Katherine Tobin (Hearing Co-Chair) .......................................................................................................60 Statement of Mr. Jeff M. Smith Director, Asian Security Programs, and Kraemer Strategy Fellow, American Foreign Policy Council ................................................................................................................61 Prepared Statement .........................................................................................................64 Statement of Dr. Tanvi Madan Director, The India Project, and Fellow, Foreign Policy, The Brookings Institution ...87 Prepared Statement .........................................................................................................90 Statement of Dr. Deepa M. Ollapally Research Professor of International Affairs, and Associate Director, Sigur Center for Asian Studies Elliott School of International Affairs, George Washington University .....................................................................................99 Prepared Statement .......................................................................................................101 v Panel II: Question and Answer ........................................................................................107 Panel III: China and Pakistan Panel III Introduction by Commissioner Dennis Shea (Hearing Co-Chair) .....................................................................................................123 Statement of Mr. Andrew Small Transatlantic Fellow, German Marshall Fund of the United States .............................124 Prepared Statement .......................................................................................................128 Statement of Dr. Daniel S. Markey Senior Research Professor in International Relations and Academic Director, Global Policy Program, Johns Hopkins University School of Advanced International Studies; Adjunct Senior Fellow for India, Pakistan, and South Asia, Council on Foreign Relations ......................................................................................134 Prepared Statement .......................................................................................................137 Statement of Ms. Shamila Chaudhary Senior South Asia Fellow, New America; Senior Advisor, Johns Hopkins University School of Advanced International Studies ..................................................................144 Prepared Statement .......................................................................................................148 Panel III: Question and Answer ......................................................................................157 1 CHINA–SOUTH ASIA RELATIONS
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