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NATIONAL COMMITTEE ON - RELATIONS

2006 Annual Report

Celebrating1966 – 2006 40 Years

National Committee on United States-China Relations

71 West 23rd Street, 19th Floor, New York, NY 10010-4102 / www.ncuscr.org Board of Directors

November 2005 – November 2006

Chair Keith Abell Louis V. Gerstner, Jr. David R. Malpass Carla A. Hills Dennis Blair Bates Gill D. Bruce McMahan Ray Bracy Thomas M. Gorrie Robert S. McNamara Vice Chairmen Mary Brown Bullock Harry Harding Douglas P. Murray William M. Daley Thomas J. Christensen* Jamie P. Horsley Thomas R. Pickering Maurice R. Greenberg Edward T. Cloonan David A. Jones, Jr. Joseph W. Prueher Thomas H. Kean Jerome A. Cohen John T. Kamm Matt Salmon Nicholas R. Lardy Ken W. Cole Virginia Kamsky James R. Schlesinger William Rhodes Ralph A. Cossa Muhtar Kent Mark A. Schulz J. Stapleton Roy Lorne W. Craner Henry A. Kissinger John L. Thornton Michael L. Ducker Geraldine S. Kunstadter David K. Y. Tang Treasurer Martin S. Feldstein David M. Lampton Herbert J. Hansell Barbara H. Franklin Terrill E. Lautz Charles W. Freeman, III Robert A. Levinson Secretary Peter F. Geithner Cheng Li Kathryn D. Christopherson David R. Gergen Kenneth Lieberthal N at i o n a l C o m m i t t e e o n U n i t e d S tat e s - China Relations

The National Committee on United States-China Relations is a nonprofit educational organization that encourages understanding of China and the United States among citizens of both countries. The Committee focuses its exchange, educational and policy activities on and security, , governance and civil society, economic cooperation, media and transnational issues, addressing these issues with respect to the People’s Republic, Hong Kong SAR and Taiwan. The Committee’s programs draw strength from its members, who now number more than 700 Americans from all parts of the country and about 70 corporations and professional firms. They represent many viewpoints, but share the belief that productive U.S.-China relations require ongoing public education, face-to-face contact and forthright exchange of ideas. Letter from the Chair & President

orty years ago, a remarkable group of people decided to take on the challenge of educating Americans about China, anticipating the time when the door F between these two countries would reopen. The National Committee on U.S.- China Relations grew out of their vision and incorporated their principles of educa- tion, not advocacy; representation of diverse views and all facets of American society among its membership; and outreach to government officials, opinion makers and the general public. We were gratified to have two of our founders, Lucian Pye and Robert Scalapino, share some of their memories and insights about the Committee’s work at our fortieth anniversary program in May 2006. We also took note of the diverse audience in atten- dance. Certainly it reflected the high regard that Lucian and Bob enjoy, as American pioneers in the field of China studies. Yet it also illustrated the many types of profession- als whose work now touches the field of U.S.-China relations: not only diplomats and academic specialists, but also corporate executives, consultants, attorneys, non-profit staff, journalists and others. While we take pride in our 40-year , it’s no longer sufficient for us to say that we are the oldest American organization dedicated to productive U.S.-China relations. Our programs need to take fresh approaches to addressing critical and emerging issues in the relationship. We need to invest in the next generation of leaders, by creating mean- ingful opportunities for outstanding American and Chinese young professionals and students to interact with each other. And we need to remain true to our founders’ goal, of helping Americans gain a deeper and more nuanced understanding of China. The programs described in this 2006 annual report demonstrate some of the creative ways in which we try to meet these challenges. We have implemented exchange pro- grams in the fields of politics and security, education, economic cooperation, governance and civil society, media and transnational issues, and they often take on sensitive and cutting edge issues. We have taken American political leaders to China for a firsthand look at the dramatic changes taking place there. We have brought American and Chi- nese specialists together for direct discussion of cross-Strait tensions, HIV/AIDS aware- ness, labor law and other sensitive topics. We have placed Chinese interns in American non-governmental organizations and American high school students in Chinese homes. We have taken delegations away from the major cities to places that are more reflec-

2 National Committee on U.S.-China Relations tive of typical life in China and the United States. Our programs have given participants opportunities to share professional expertise and insights, debate, argue, laugh and, we hope, find some common ground in their very different sets of personal experience. Forty years ago, it was not possible to imagine even our earliest exchanges, in the fields of athletics and culture, let alone the substantive issues we now tackle. Nor was it possible to picture the many ways in which Americans and Chinese routinely interact today, through diplomacy, , education and other fields. In a 2001 essay, Bob Scalapino wrote that the goal of the National Committee is “enabling the issue of China to be viewed in its full complexity, with policies examined with respect to American as well as those of the global community.” This, in effect, has been our touch- stone over the last four decades. We’re confident that this guidance will continue to serve us well in the years ahead as we develop exchanges and public education programs that will enhance understanding between citizens of the two countries. Our programs would not have succeeded without the generosity and assistance of our funders, members and friends. We are grateful for the many worthy partners who have worked with us in bringing these programs to fruition.

Carla A. Hills Chair

Stephen A. Orlins President

2006 Annual Report 3 L2006etter Ex changesfrom the C&hair Conferences & President

2006 Exchanges & Conferences ational Committee exchanges are two countries, in the ways they change the generally short-term in length but, perspectives participants have of the other Nwe hope, long-term in impact. By country and the continuing and providing a means for professionals on both collaboration that they foster. sides of the Pacific to exchange experience Information on exchanges conducted in and expertise, they offer participants a 2006 can be found below; for more details different perspective on China or the about a specific program, please write to United States than can be gained through [email protected]. a sightseeing trip. Discussions during these program may highlight differences as well as common ground, but the effect is to offer Politics and Security a more nuanced understanding of the other National Committee exchanges in the country, the challenges that face its leaders field of politics and security are designed to and the views of citizens from different engage American and Chinese policy-makers walks of life. A typical National Committee and opinion leaders in direct discussion exchange program lasts about two weeks of sensitive issues. As “China’s rise” draws and includes stops in several cities; it is greater consideration in Washington, the characterized by an environment that National Committee has reintroduced encourages participants to exchanges views exchanges for members of Congress and in a forthright manner. We see the success initiated a program for potential candidates of these programs in the contributions in the 2008 presidential race. they make to policy development in the The National Committee has deep

National Committee president Steve Orlins (left) accompanied former Senator John Edwards and his advisor Derek Chollet to China.

4 National Committee on U.S.-China Relations 2006 Exchanges & Conferences roots in conducting exchanges for members Track II diplomacy efforts in conjunction with of Congress and their staffs. What has the Harvard-Stanford Preventive Defense changed in the 30 years since our first Program (PDP). A delegation of American program, a 1976 three-week study tour specialists, led by former Secretary of Defense of China for Congressional staffers, are and PDP co-director William Perry, spent the types of briefings that can now be several days in November in Hawaii discussing arranged and the range and depth of those cross-Strait relations and regional security discussions. In January 2006, Congressmen with Chinese specialists. The core group Feeney, Kirk and Larsen, all members of the of Americans has met with mainland and Congressional US-China Working Group, Taiwan interlocutors a total of 10 times since discussed Sino-American cooperation in 1998; as a result of consistent engagement, the Six-Party Talks, non-proliferation, this program has become an effective channel trade frictions, protection of for exchanging views and exploring sources of property rights and cross-Strait relations tensions on sensitive issues. in meetings with senior representatives of the National People’s Congress (the host US-CHINA WORKING GROUP DELEGATION organization), Ministry of Foreign Affairs, TO CHINA Ministry of Commerce, Ministry of Defense January 8-17, 2006 and other government agencies. They also Funder: Private sources traveled to province for a rare tour of Partner: National People’s Congress China’s space launch facility, to for meetings with municipal leaders and VISIT OF SENATOR JOHN EDWARDS TO with several Chinese fellows in the National CHINA Committee’s Young Leaders Forum, and to October 16-19, 2006 Hong Kong for briefings with legislators, Funder: Private sources justices and other officials. Partner: Chinese People’s Association for Similarly, a brief, but intense, trip to Friendship with Foreign Countries in October gave former Senator John Edwards on-the-ground experience in STRATEGIC SECURITY ISSUES DIALOGUE CONFERENCE IN THE UNITED STATES China and access to senior Chinese policy- September 27-October 1, 2006 makers. The itinerary included meetings with In cooperation with the Harvard-Stanford the ministers of foreign affairs, education Preventive Defense Project and defense, the vice minister of the State Environmental Protection Agency; the former chief executive of the Hong Kong Governance and Civil SAR and the former mayor of Shanghai; and Society groups of Chinese , survey researchers The reform era has introduced signif- and American businesspeople and journalists. icant changes in governance in China: He shared some of the highlights of the trip, in the relations between the central and his impressions of China, with National government and provinces, in the relations Committee members and friends at a New between the state and workers, and in the York public program cosponsored with the space allowed for non-governmental actors Society. to address social concerns. In the labor The National Committee continues its market, workers are no longer married to

2006 Annual Report 5 2006 Exchanges & Conferences

how similar issues are handled in European countries that have a formal law and in the United States, which does not. Labor experts John Change also can be seen in the Fraser (second from left) expansion of civil society in China. Non- and Alan Neal (fourth governmental organizations (NGOs) and from left) provided a government-organized NGOs (GONGOs) comparative perspective are playing greater roles in the delivery on China’s draft law at a Beijing workshop. of social services and in raising awareness about issues such as HIV/AIDS and the environment. A National Committee the same for the duration of their exchange program, funded by the careers and many have experienced material U.S. Department of State’s Bureau of benefits from this increased flexibility and Educational and Cultural Affairs, provided new opportunities in the private sector. A to NGO and GONGO leaders on next step in this evolution of China’s labor how to expand their human resources by market will be the passage of the Labor effectively incorporating volunteers into Contract Law, anticipated for 2007, which their organizations. From February to will extend new rights and protections to April 2006, four Chinese NGO staffers workers and outline the steps employers spent six weeks as interns in the United must take to ensure them. States, observing the ways in which a For the past several years, the myriad of American organizations recruit, National Committee has helped bring motivate, train and manage volunteers. comparative expertise into the process The four selected were among the of drafting the Contract Law, through participants in training programs and on- the U.S.-China Labor Law Cooperation site consultations the National Committee Project. This project was initiated by a had conducted in December 2005 in Memorandum of Understanding between Beijing, Xi’an and Kunming, in conjunction the U.S. Department of Labor and China’s with PeopleLink and China Development Ministry of Labor and Social Security; it is Brief. Two American professionals with being implemented by a consortium that extensive experience in the non-profit includes the National Committee, Asia sector served as hosts and mentors for the Foundation and Worldwide Strategies. The interns; both had participated in the 2005 National Committee’s work has focused phase of the project on legislative drafting and on developing A National Committee conference, training curricula for labor inspectors. At held in July 2006 in conjunction with a December 2006 seminar in Beijing, two Renmin ’s School of international experts in labor law discussed and supported by the Ford Foundation, the current draft of China’s Labor Contract looked at another area of change in Law with Chinese policy-makers and labor governance. Over the past decade, China’s specialists. They provided information on central government has transferred greater

6 National Committee on U.S.-China Relations responsibility for social service provision to the provinces and other subnational STRENGTHENING VOLUNTEER governments. Yet, there has not been a MANAGEMENT IN CHINESE NGOS corresponding increase in revenue to assist INTERNSHIPS IN THE UNITED STATES them in meeting their obligations. The February 25 – April 3, 2006 conference on China’s intergovernmental Funder: U.S. Department of State, Bureau fiscal relations brought together Chinese, of Educational and Cultural Affairs American and European financial specialists CENTRAL-LOCAL FISCAL RELATIONS IN to consider some of the budgetary tools used CHINA CONFERENCE IN CHINA in both unitary and federal government July 10-11, 2006 systems. The policy debates on rebalancing Funder: Ford Foundation China’s public spending and on better Partner: School of Finance, Renmin management of central-local fiscal relations University were given specific connotations in discussions on special transfer payments LABOR CONTRACT LAW and extra-legal off-budget expenditures. A SEMINAR IN CHINA monologue, “Central-Local Fiscal Relations December 4-6, 2006 in China,” resulted from the meeting and Funder: U.S. Department of Labor is available on the Committee’s website Partner: Ministry of Labor and Social (www.ncuscr.org). Security

NGO leaders Zhu Jiangang (far left) and Michael Chen (second from left) took part in volunteer activities during their internship in Arizona.

2006 Annual Report 7 2006 Exchanges & Conferences

Education major funder since its inception; school districts and program alumni also contribute There is strong and growing interest support to TEP. throughout the United States in introducing For more than 25 years, the National or expanding instruction Committee has implemented exchange in K-12 schools. The U.S.-China programs for educators on behalf of Exchange Program (TEP) has been at the the U.S. Department of Education and forefront of this movement for more than a China’s Ministry of Education, under the decade, recruiting professional, experienced Memorandum of Understanding (MOU) American and Chinese teachers to spend signed by the two countries. The National an academic year in the other country and Committee welcomes two delegations of providing support for the teachers as well Chinese educators to the United States each as the schools that host them. Fall 2006 year for two-week study tours. In 2006, at the marked the start of the eleventh year for Ministry of Education’s recommendation, the exchanges, which to date have involved both delegations focused on the subject of nearly 300 American and Chinese teachers. administration, one in June and the other in October-November. While there are distinct differences between the education systems in the two countries, the Chinese educators found interesting concepts and potential models in briefings across the United States on the roles of state and federal governments in higher education, university administration, sources of funding for programs and faculty , student recruitment and other topics. A diverse group of institutions were featured on the itineraries – including private institutions, public and land-grant , community , minority- serving institutions, among others – giving delegation members a wealth of information. Chinese and Minnesota The impact of the program is felt well The reciprocal component of the educators exchanged beyond the classrooms: the teachers take on MOU is the Fulbright-Hays Seminars views on the role of higher the role of public educators, as they become and Abroad Program, a month-long study tour part of the communities in which they are the United States. of China for American educators. The based and share information about their program is built around the core theme of respective home countries with colleagues “China: Tradition and Transformation,” and neighbors. Starting in September with lectures and complementary site visits 2006, Chinese in 15 American cities and designed to expand participants’ knowledge Americans in five Chinese cities have had of China’s history, society, politics and opportunities to add personal dimensions to economic development. In addition to the their impressions of the other country. The major cities of Beijing, Xi’an and Shanghai, Freeman Foundation has been the program’s the 2006 program included several days in

8 National Committee on U.S.-China Relations Qinghai, a province in with a large minority population. The time spent in several rural counties and towns provided an interesting contrast to China’s major cities, and the group enjoyed home stays with local families, an introduction to community development projects, seeing parts of a traditional festival honoring mountain gods and being feted by village elders at a banquet. The study tour concluded with an optional three-day extension in Hong Kong, funded by an anonymous donor and by the teachers themselves.

was sparse and offered few details about the The visit of a delegation U.S.-CHINA TEACHERS EXCHANGE extent of infection within the country – of Chinese journalists to PROGRAM Washington, DC fortu- information considered too sensitive for public 2006-2007 Academic Year itously coincided with the dissemination. Yet, in the wake of the 2003 Funder: Freeman Foundation cherry blossom season. SARS crisis, the media became recognized as a Partners: Chinese Education Association for channel for educating Chinese citizens about International Exchange (CEAIE); six host public health threats, including HIV/AIDS. schools in five Chinese cities and towns and 21 A 2006 National Committee exchange host schools in 15 American cities and towns program focused specifically on the role of HIGHER EDUCATION ADMINISTRATION the media in HIV/AIDS education. The goal DELEGATIONS of the program was not only to strengthen STUDY TOURS OF THE UNITED STATES the work of China’s journalists in raising June 3-16, 2006 awareness about HIV/AIDS prevention and October 28 – November 10, 2006 treatment, but also to show journalists the Funder: U.S. Department of Education media’s potential for addressing the stigma Partner: Ministry of Education, CEAIE associated with people living with AIDS. The first part of the exchange was a two-week FULBRIGHT-HAYS SEMINAR ABROAD PROGRAM study tour of the United States for seven June 26 – July 26, 2006; Hong Kong Extension, enterprising print and journalists July 26-30, 2006 from Beijing, , Changsha and Funder: U.S. Department of Education Zhengzhou. The program included briefings Partner: Ministry of Education, CEAIE that delivered substantive information on the disease, its transmission and prevention; reports on outreach and advocacy efforts; and Media firsthand accounts from people living with AIDS. Particular attention was paid to the Growth in China’s media sector can be stigmatization of those with the disease and measured not only by the increasing number ways in which the media can help overcome of media outlets, but also by the variety of that problem. The participants also learned news stories now available. Only five years about effective ways to communicate this ago, reporting on China’s HIV/AIDS situation information, during sessions at Johns Hopkins

2006 Annual Report 9 2006 Exchanges & Conferences

give aspiring young Chinese journalists a taste of the global media business through three-month placements at Time Warner entities. The three 2006 interns, students selected through a competitive application process, worked alongside mentors at Fortune, CNN and Chinese specialists came to HBO. Over the course of the program, these New York to learn more young women absorbed information on the about strengthening the interests of news consumers, traditional and development of cultural new means of delivering news, the growth and media industries. of the entertainment industry, and the University’s Center for Communication integration of online and print media. Since Programs and in discussions with journalists. its inception in 1998, the Time Warner During the second phase of the program, Internship Program has engaged 39 Chinese four American specialists shared their students. Many of them have gone on to expertise in public health communication pursue postgraduate degrees in journalism or and journalistic experience in covering media careers in China and abroad. HIV/AIDS during workshops in Beijing, Changsha and Guangzhou. Site visits to DEVELOPING EFFECTIVE MEDIA hospitals and other service centers in each REPORTING FOR HIV/AIDS EDUCATION IN city gave them a deeper understanding of CHINA steps China is putting in place to meet its DELEGATION TO THE UNITED STATES HIV/AIDS crisis; the delegation also was March 25 – April 7, 2006 DELEGATION TO CHINA able to talk to participants in the 2006 May 19-31, 2006 International AIDS Candlelight Memorial, Funders: U.S. Department of State, Bureau which, serendipitously, was held during the of Educational and Cultural Affairs; CE&S time they spent in Beijing. Foundation In September 2006, the National Partners: Center for International Committee provided support for a delegation Communication Studies, Tsinghua of Chinese specialists interested in ways University; City of Changsha; Zhongshan that national and local governments can University strengthen the development of cultural and media industries. Discussions in Washington MEDIA POLICY FORUM and New York, at government agencies, DELEGATION TO THE UNITED STATES public and private media outlets, an art September 9-14, 2006 gallery and an auction house, among others, Funders: U.S. Department of State, Barbash provided information that Chinese policy- Family Foundation makers can draw on in reforming cultural and media sectors. TIME WARNER INTERNSHIP PROGRAM INTERNSHIPS IN THE UNITED STATES Another National Committee media September 13 – December 20, 2006 initiative, the Time Warner Internship Funder: Time Warner Inc. Program, invests in the future of journalism Partners: CNN, Fortune and HBO in China. The program is designed to

10 National Committee on U.S.-China Relations National Committee chair Carla Hills was one of the speakers at the U.S. Foreign Policy Colloquium.

Next Generation Programs program were the keynote presentations by Congressmen Mark Kirk and Rick Larsen, Several ongoing major programs reflect co-chairmen of the bipartisan US-China the significant investment the National Working Group and an interview of Dennis Committee has made in educating the Wilder, director for China, Mongolia and next generation of American and Chinese Taiwan affairs on the leaders about each other’s countries: the Council, conducted by three of the FPC U.S. Foreign Policy Colloquium, Public student participants. Program, Young Leaders Forum The Public Intellectuals Program (PIP), and Student Leaders Exchange. introduced in 2005, has already made The U.S. Foreign Policy Colloquium substantial progress in nurturing the younger (FPC) is designed to give Chinese graduate generation of American China specialists. students an introduction to the American The 20 scholars who participate in the foreign policy-making process. Each June program represent a range of disciplines and since 2003, the program has attracted 150- institutions; they bring a mutual desire to 200 students enrolled in U.S. graduate broaden their knowledge about China and and professional school programs to the Sino-American relations and to strengthen campus of our partner, the Elliott School their ability to communicate with the public of International Affairs at The George about America’s China policy. In 2006, the Washington University. Over the course second year of the program, half of the PIP of three days, participants hear directly fellows traveled to the mainland and Hong from some of the actors who play a role in Kong for an intensive 10-day study tour. All formulating, implementing and explaining of the fellows have spent extensive periods foreign policy, including representatives of conducting their own of the administration and Congress, research, yet this program offered something business and interest groups, the media and new for each member of the delegation, academia. Among the highlights of the 2006

2006 Annual Report 11 2006 Exchanges & Conferences

whether it was the occasions to exchange better through these informal presentations views with high-level officials, such as vice facilitated two other discussions, on how minister of foreign affairs Yang Jiechi, or best to increase America’s understanding the opportunities to explore dimensions of China’s interests and motivations and of China outside their individual fields of on China’s understanding of U.S. interests specialization, such as public health or legal and motivations. Beyond the yearly Forum, development. A highlight of the trip was YLF fellows stay in contact on topics of the ongoing dialogue with Robert Scalapino, mutual interest and often help host National the epitome of a public intellectual in the Committee delegations; several exchange field of U.S.-China relations, who served as programs described in this annual report the -escort for the group. The second included contributions from YLF fellows. cohort of fellows will travel to China in the The U.S.-China Student Leaders fall of 2007. Exchange (SLE) is comprised of 12 The Young Leaders Forum (YLF) selects participants selected from the ranks of outstanding American and Chinese, under the Presidential Scholars (a group of the age of 40, to participate in an annual graduating high school seniors designated retreat and build a network across a diverse by the U.S. Department of Education as array of professional fields. The 2006 YLF the top students in the country). The 2006 was held in Santa Cruz, and group spent two weeks in China exploring focused on the theme of “motivation.” the cities of Beijing, Xi’an and Qufu. In Over the course of the three-day program, addition to briefings on Chinese history and participants shared their perspectives on contemporary life, the students were matched who and what has motivated them to excel in Beijing and Xi’an with host families. Students from the mainland, Taiwan and the United in their work as artists, business executives, The opportunity for the American students States took part in conflict entrepreneurs, , educators and other to spend time informally with a Chinese resolution exercises. professions. Getting to know each other “brother” or “sister” and experience Chinese home life firsthand left deep impressions on them. As in previous years, we are pleased to learn that the SLE experience inspired some of the delegation members to enroll in Chinese history and language classes when they began their university experiences in the fall of 2006. A new addition to our next generation programming debuted in 2006. This was the Conflict Management and Resolution Workshop, open to 30 graduate students from the mainland, Taiwan and the United States. Held on the campus of the University of San Diego, this intensive nine-day program surveyed the roots of different types of conflict and introduced the tools available to manage or resolve them. While the workshop did not directly address cross-

12 National Committee on U.S.-China Relations Strait relations, the experience of classroom and extracurricular bonding activities certainly made a contribution to enhanced understanding across the Strait. Staff from the National Center on Conflict Resolution served as and facilitators and gave presentations on topics such as conflict theory, the influence of culture on conflict, game theory, negotiation, mediation, and international dialogue. The students also took part in several role-playing exercises and gained a real-world perspective on conflicts in the Philippines, and other areas of the globe through lectures by guest speakers. The National Committee is exploring means to make this workshop an annual program.

U.S. FOREIGN POLICY COLLOQUIUM CONFLICT MANAGEMENT & RESOLUTION Participants in the Student June 7-9, 2006 WORKSHOP Leaders Exchange enjoyed a range of adventures in China. Funders: The Coca-Cola Company, FedEx August 5-14, 2006 Corporation, Anheuser-Busch Companies, Inc. Funder: U.S. Department of State, Bureau Partner: Elliott School of International of Cultural and Educational Affairs Affairs, The George Washington University Partner: Joan B. Kroc Institute for International Peace and Justice, University PUBLIC INTELLECTUALS PROGRAM of San Diego; National Conflict Resolution DELEGATION TO CHINA Center June 23 – July 4, 2006 Funders: The Henry Luce Foundation, Starr YOUNG LEADERS FORUM Foundation October 25-29, 2006 Partner: Chinese Foreign Affairs University Funders: The Thornton Foundation, Time Warner Inc., UPS, Starr Foundation U.S.-CHINA STUDENT LEADERS EXCHANGE July 18 – August 1, 2006 Funders: Laureate Education, Inc., Wall Street English, China State Construction Corporation (U.S.) Partners: Ministry of Education, Chinese Education Association for International Exchange

2006 Annual Report 13 Public Education and Out- reach

Public Education & Outreach

hrough seminars, panel programs, publications, e-mail briefings and Tconference calls, the National Committee provides information about the major issues in U.S.-China relations directly from specialists on both sides of the Pacific. The Committee’s website (www.ncuscr.org) is another channel for public outreach. The programs listed below were held in , unless otherwise indicated. talks with President Hu Jintao during the April dinner in Washington. JANUARY 12 Jones Day China Lecture Series MARCH 20 “One Billion Customers: Lessons from the Roundtable Discussion Front Lines of Doing Business in China” “U.S.-China Political and Trade Relations” Speaker: James L. McGregor, Author Speaker: Jiang Enzhu, Foreign Affairs Committee, National People’s Congress JANUARY 17 Roundtable Discussion APRIL 17 “U.S.-Chinese-Japanese Relations” Jones Day China Lecture Series Shanghai Institute for International Studies “The Hu-Bush Summit” Delegation Speaker: Cheng Li, Hamilton

FEBRUARY 27 APRIL 20 Roundtable Discussion Dinner Address “China’s Media” President Hu Jintao Speaker: Li Xiguang, School of Journalism Cosponsored with US-China Business and Communications, Council and U.S.-Chamber of Commerce, in cooperation with America-China Forum, MARCH 1 Asia Society, Brookings Institution, Center Barnett-Oksenberg Lecture on Sino-American for Strategic and International Studies, Relations China General Chamber of Commerce- “American Perceptions of China” USA, China Institute, Committee of 100, Speaker: Kenneth Lieberthal, University of Council on Foreign Relations, US-China Michigan Policy Foundation Shanghai Washington, DC

MARCH 9 MAY 3 Jones Day China Lecture Series 40th Anniversary Program “New Tensions in the Taiwan Strait” “The Past as Prologue: A Discussion with Speaker: Harry Harding, Eurasia Group the National Committee’s Founders” Speakers: Lucian Pye, Massachusetts MARCH 20 Institute of and Robert Roundtable Discussion Scalapino, University of California, Berkeley “Political Developments in Taiwan” Speaker: Ma Ying-jeou, Mayor of Taipei

14 National Committee on U.S.-China Relations MAY 19 Luncheon Address Li Yuanchao, Chairman, Standing Committee, Provincial People’s Congress Cosponsored with Asia Society and Council on Foreign Relations

JULY 11 Roundtable Discussion Les Gelb interviewed Hank Greenberg about Victor Yuan highlighted some of the findings “Corporate Philanthropy” his experiences with China. of his polling in China. Ministry of Civil Affairs Delegation Cosponsored with New York Regional Association of Grantmakers SEPTEMBER 21 JULY 18 Panel Discussion Jones Day China Lecture Series “Sino-Japanese Tensions and Implications “China’s Judiciary: Current Reforms and for U.S.-China Relations” Challenges” Speakers: James Kelly, CSIS Pacific Forum; Speaker: Judge Song Jianli, Supreme Michael McDevitt, Center for Naval People’s Court Analyses; Alan Romberg, The Henry L. Stimson Center. JULY 26 Cosponsored with Society E-mail Broadcast “The Shanghai Cooperation Organization” OCTOBER 31 Authors: Phillip Saunders, National Defense Breakfast Program University and Shen Dingli, Center for “The Future of U.S.-China Relations” American Studies, Fudan University Speaker: Senator John Edwards Cosponsored with Asia Society AUGUST 23 Roundtable Discussion NOVEMBER 9 “Cross-Strait Dynamics” Annual Members Program Foundation on International and Cross- “Surveying U.S.-China Relations” Strait Studies Delegation Speaker: Maurice R. Greenberg, C.V. Starr & Co.; Moderator: Les Gelb, Council on SEPTEMBER 18 Foreign Relations Roundtable Discussion “Current Issues in U.S.-China Relations” DECEMBER 5 China Institutes for Contemporary Jones Day China Lecture Series International Relations Delegation “Independent Polling Work in China” Speaker: Victor Yuan, Horizon Research SEPTEMBER 19 Group Jones Day China Lecture Series Moderator: Les Gelb, Council on Foreign “Chinese Lessons: Five Classmates and the Relations Story of the New China” Speaker: John Pomfret, Author

2006 Annual Report 15 N ational C ommittee Gala Dinner

Distinguished guests included Assistant Christopher Hills and ... All photos on this page © Elsa Ruiz

Honorees Muhtar he National Committee celebrated Kent (far left) and its 40th anniversary at a Gala Dinner William Weldon (far on the evening of October 12, 2006 right) are con- T gratulated by Consul in New York City. The Committee also used General Liu Biwei and the occasion to recognized two outstanding National Committee business leaders for their contributions to president Steve Orlins. productive U.S.-China relations: Muhtar …National Committee chair Carla Hills and U.S. Kent, president of Coca-Cola International, Trade Representative Susan Schwab… and William C. Weldon, chairman and chief executive officer of Johnson & Johnson. Mr. Kent and Mr. Weldon accepted honors, on behalf of their respective companies, in front of an audience of nearly 500 corporate executives, senior American and Chinese diplomats, policy specialists, media representatives and others. U.S. Trade Representative Susan C. Schwab, the evening’s keynote speaker, picked up on the “responsible stakeholder” theme …and National Committee director Tom Gorrie, Ma- that then-Deputy Secretary of State Robert dame Cong Jun and UN Ambassador Wang Guangya. B. Zoellick had introduced at the 2005 Gala. In her remarks, she pointed to some of the American relations, as seen through the prism challenges and opportunities that China and of the National Committee. the United States face as joint stakeholders in The Gala raised more than $1.1 million for the global trading system, including the Doha the National Committee’s programs, with 55 Round of trade negotiations. companies and dozens of individuals providing Another highlight of the evening was an support. The Committee extends its deep eight-minute clip of an hour-long documentary appreciation to honorees, directors, members, prepared by the Voice of America (to show sponsors and others who generously contributed in China) on the last four decades of Sino- their time and resources to the Gala.

16 National Committee on U.S.-China Relations G O V E R N A N C E & MEMBERSHIP

he 80th Meeting of the Board of Also at the session, Directors elected the Directors was held in New York following officers of the Committee: Carla TCity on November 10, 2006. The A. Hills, chair; William M. Daley, Maurice 40th Annual Members’ Meeting was held on R. Greenberg, Thomas H. Kean, Nicholas R. November 9, 2006. Lardy, William R. Rhodes, and J. Stapleton Since the Committee was moving to Roy, vice chairmen; Herbert J. Hansell, trea- a calendar (effective January 1, surer; Kathryn D. Christopherson, secretary, 2007), and future Annual Meetings and and Stephen A. Orlins, president. Board elections would take place each spring, At-large Board Members, Dennis C. no Board election took place at this session. Blair, Barbara H. Franklin, Peter F. Geithner, To maintain continuity as the Commit- David M. Lampton, Robert A. Levinson, tee was moving to the new cycle, Members Kenneth J. Lieberthal, D. Bruce McMa- present (or by proxy) approved a Resolution han, Robert S. McNamara, and Joseph W. extending current Directors’ terms as follows: Prueher, joined the officers to comprise the Directors whose terms were to expire in No- Executive Committee. vember 2006, 2007 and 2008 were extended Herbert J. Hansell was appointed chair- to the spring annual meetings in 2007, 2008 man of the Audit & Budget Committee; Car- and 2009, respectively. la A. Hills, chair of the Compensation Com- During 2006, Director Thomas J. Chris- mittee; Edward T. Cloonan and D. Bruce tensen retired from the Board (for govern- McMahan, co-chairmen of the Development ment service). Mr. Muhtar Kent was ap- Committee; Nicholas R. Lardy, chairman of pointed a Director at the 64th Meeting of the the Management Committee; Kathryn D. Executive Committee on May 24. Former Christopherson, chairman of the Nominating Directors Douglas Paal, James R. Sasser, and Committee; and David M. Lampton, chair- I. Peter Wolff were appointed Directors at the man of the Program Committee. 80th Board session on November 10.

2006 Annual Report 17

he activities of the National Committee are made possible by the support of U.S. govern- ment agencies, particularly the United States Department of State, the United States TDepartment of Education, and the United States Department of Labor, foundations, busi- ness firms, Members and friends. This support enables the Committee to maintain service to the public at large and to undertake exchanges and special programs that contribute to the advance- ment of knowledge and strengthening of relationships on both sides of the Pacific. We are indebted to those who made financial contributions during Fiscal Year 2006 (Oc- tober 1, 2005 – September 30, 2006) and the three-month fiscal period following (October 1, 2006 – December 31, 2006). We are also indebted to the many individuals who gave so much of their time, creativity and in-kind assistance. Financial contributors for the 15-month period are listed below and on succeeding pages.

Business & Professional Alcoa Patrons Contributors American Securities Capital AMD Partners, LLC BD Leaders Anheuser-Busch International, Inc. Kamsky Associates The ACE Group The Company Milbank, Tweed, Hadley & The Albright Group, LLC China Construction America McCloy LLP American International Civic Services, Inc. Sit Investment Associates, Inc. Group, Inc. Covington & Burling LLP Davis Polk & Wardwell Argent Financial Group Other Contributors BP Financial Dynamics CIGNA Chevron Corporation Ford Motor Company DDB Citigroup Inc. Goldman Sachs & Co. The Coca-Cola Company Gulfstream Aerospace Corporation Hill & Knowlton The FedEx Corporation Foundations & Special Hills & Company General Motors Contributors GSC Partners Hong Kong Economic & Johnson & Johnson Trade Office ACE INA Foundation Jones Day Lenovo Barbash Family Fund Kekst and Company Incorporated Levcor International, Inc. Jeanne Badeau Barnett Trust Lehman Brothers Lucent The Boston Educational Morgan Stanley Mattel, Inc. Development Foundation, Inc. News Corporation Merck & Co., Inc. C. E. & S. Foundation Shaklee Corporation National Basketball Association China Construction America, Inc. Time Warner Inc. National Football League Ford Foundation Tishman Speyer GSC New York Life Insurance Freeman Foundation United Airlines Company Louis V. Gerstner Jr. Foundation United Parcel Service Paul, Hastings, Janofsky & The Maurice R. & Corinne P. Wal-Mart Stores, Inc. Walker LLP Greenberg Foundation, Inc. Pfizer The Jeanne & Herbert Strategy XXI Benefactors Hansell Fund Sybase, Inc. AEA Investors LLC IBM Foundation Tyco International Akin Gump Strauss Hauer The Henry Luce Foundation, Inc. Unilever & Feld LLP The MacArthur Foundation Nilsson Trust

18 National Committee on U.S.-China Relations The Paturick Foundation Inc. Patron Peter F. Geithner Rockefeller Foundation Shenyu Belsky Sherwood Goldberg Shaklee Foundation Carlos M. Bhola Thomas D. Gorman The Starr Foundation W. Michael Blumenthal Lee H. Hamilton Sylvan/Laureate Foundation Inc. Mary Brown Bullock Eileen Hsieh The Thornton Foundation David F. Clossey Merit E. Janow Savio & Patty Tung Foundation Jerome A. Cohen Vidar Jorgensen Wang Yu Fa Foundation Charlotte Conable John Charles Jove Woo’s Foundation Hart Fessenden John Thomas Kamm U.S. Department of Education Barbara Hackman Franklin Irving J. Karp U.S. Department of Labor Louis V. Gerstner, Jr. Helena Kolenda U.S. Department of State Bates Gill Elizabeth D. Knup Michael Goettl John D. Langlois, Jr. George J. Green Natalie G. Lichtenstein Individual Contributors David S. Hirsch Stanley B. & Judith Lubman Thomas H. Kean Eugene A. Nojek Benefactor Milton Kotler Roberta & Charles Paturick Keith W. Abell Geraldine S. Kunstadter Lucian W. Pye Roger C. Altman David M. Lampton Arthur H. Rosen Cathy Barbash Nicholas R. Lardy Harriet P. Rosenson Dennis Blair Terrill E. Lautz Gene Rostov Ray Bracy Diane E. Long Mervyn W. Adams Seldon Curtis Chinh Gregory McLaughlin Roy C. Sheldon Kathryn D. Christopherson June Mei Carl F. Stover Edward T. Cloonan David A. Miller Donald J. Swanz Ken W. Cole Ken Miller Savio W. Tung Charles J. Conroy Christian Murck Charles Pei Wang Michael L. Ducker A. Kenneth Nilsson John Young Martin S. Feldstein Nicholas Platt

Thomas M. Gorrie Joseph W. Prueher Member Maurice R. Greenberg J. Stapleton Roy Alfred Abati Herbert Hansell Henry P. Sailer Andrew J. Andreasen Harry Harding Denis Fred Simon Peter H. Antoniou Carla A. Hills Donald L. Staheli Papa Assane Ba+ David A. Jones, Jr. Matthew J. Stover David M. Bachman Muhtar Kent Michael J. Zak I. Allen Barber II Robert A. Levinson William K. Zinke Carol Edler Baumann Kenneth Lieberthal Norton Belknap David R. Malpass Sponsor Richard Belsky D. Bruce McMahan Perry Bradford Badgley+ Suzanne Reynolds Bennison Steven R. Okun Mr. & Mrs. Charles W. Bailey Thomas P. Bernstein William R. Rhodes Lucille A. Barale Jean-Marc F. Blanchard David Rockefeller Jeanne B. Barnett P. Richard Bohr Mark A. Schulz Lucy Wilson Benson David L. Boren John L. Thornton Kay Boulware-Miller Joseph J. Borich I. Peter Wolf Angela Chen John Brademas Charles W. Freeman III Robert P. Brannigan

2006 Annual Report 19 Finances

J. Alan Brewster David L. Grossman James R. Lilley William Bronski+ Richard N. Haass Bette Bao Lord David D. Buck Tim Halfmann Winston Lord John Burns Rupert J. Hammond-Chambers Abraham F. Lowenthal Richard C. Bush III Carol Lee Hamrin Xiaobo Lu Carol Engebretson Byrne Eugene J. Hanratty, III Lu Weiming Janet A. Cady James T. Harris Mark Lundstrom Allen R. Carlson Richard G. Heggie R. W. Lyman Eugene Carlson & Mimi Darryll Hendricks Yan Ma Thompson Ruth G. Hinerfeld Virginia Magboo+ Peggy Castle+ Dean T. W. Ho G. Eugene Martin Winberg Chai John L. Holden James Martinsen Beryl Y. Chang Martha Holdridge David Maslowski+ Ta-kuang Chang William Homer Patricia Maslowski+ Thomas J. Christensen Jamie P. Horsley Richard H. Matzke Noreen M. Clark Yanzhong Huang Helen McCabe Joan Lebold Cohen Betty Lou Hummel William C. McCahill, Jr. Peter Cohen+ Brian Husselbee Tun-Hsu McCoy J. Donald Cohon, Jr. Bobby R. Inman W. Clark McFadden II Jill M. Considine Kristina James+ James McGregor Ralph A. Cossa Stephen W. Jarrett Adrienne Medawar Jane Creel David E. Jeremiah Sheila Melvin Charles T. Cross Darryl Norman Johnson Bret and June Miles+ Kevin Crotchett+ James L. Jolly, Jr. Thomas H. Miner Lee Cullum Debra Kam W Mitchell William J. Cunningham Roy D. Kamphausen Hugh H. Mo Hayes G. Dabney, II+ Robert A. Kapp Kathryn Mohrman Lawrence Daks Robert L. Keatley S. Alice Mong David Davies Elizabeth E. Keck Diane Y. Montalto G. Gordon Davis Donald W. Klein Shirley L. Mow Deborah Davis Thomas Klitgaard Satoru Murase Carmen De Yoe+ Dr. & Mrs. John A. Koltes Douglas P. Murray William F. Dorrill David G. Krueger+ Michel P. Neville Richard Elliott+ Daniel Kwong Robert L. Nichols John R. Evans David P. Lambert Patrick M. Norton Jaime S. Fall Chris R. Lanzit Donald Oberdorfer Adrienne Fazzolara+ Lawrence J. Lau Kevin J. O’Brien Evan A. Feigenbaum Damon Lawrence Lois Oksenberg Nicholas W. Fels Joseph W. Lee Mark Overmeyer+ Robert Friedman James F. Leonard Douglas H. Paal Alton Frye Burton Levin Virginia L. P’an Gloria Garfinkel Herbert Levin Todd S. Parker+ John W. Garver Karen Levin+ Joanne Parkhouse+ David R. Gergen Henry Levine Ira Perelson+ Joel N. Glassman John W. Lewis Edward J. Perkins Roger H. Goodspeed Margaret K. Lewis Ciro Perozo+ Maura M. Gouck+ Candace Li Marcia Perozo+ Linda J. Greenhouse Cheng Li Suzanne Petrilak+

20 National Committee on U.S.-China Relations Christopher Phillips Stephen C. Thomas Emile C. Chi + All or a portion of contribution Nancy T. Pickford Ann Connolly Tolkoff+ Gail C. Chou+ designated for the U.S.-China David W. Plant Lorraine Toly Gaye Christoffersen Teachers Exchange Program Gerard A. Postiglione David M. Trebing Albert E. Dien Sheridan T. Prasso Vance Van Dine William M. Dyson+ Penelope B. Prime Peter Van Ness Karen Fox+ Michael Privitera Lyman P. Van Slyke Christopher Fray+ Richard E. Radez David W. Vikner Aaron S. & Marlo D. Frontiera+ John M. Regan+ Hongying Wang Philomene A. Gates Bruce L. Reynolds Ted Wang Paul H.B. Godwin A. Douglas Robbins+ Cynthia A. Watson Paul T. Haenle James Robinson William Watts Keith J. Hand Jane Washburn Robinson Leon J. Weil Nelson Ho Thomas W. Robinson Richard A. Weiss Franklin W. Houn Alan D. Romberg Susan Roosevelt Weld Maureen Jackson+ Daniel H. Rosen Lynn T. White III Virginia Kassel Madelyn C. Ross Allen S. Whiting Frank Kehl Martha A. Rubin Margaret C. Whitman David Fon Lee Richard P. Rush Laurence F. Whittemore John Louton Richard Sanford+ John A. Wickham, Jr. John T. Ma Robert A. Scalapino Richard L. Williams Laurence J. C. Ma Stephen A. Schlaikjer Harold Wolchok Jacqueline J. Servi Margis+ James R. Schlesinger Gerald & Cynthia Wolf+ Nia Mason+ William R. Schultz Lani L. Wong Christopher D.W. Nelson M. Roy Schwarz Raymond H. Wong Suzanne P. Ogden Brent Scowcroft Diane Woo John W. Olsen Carl G. Seaholm, Jr. S. B. Woo Ryan Barrett Ong Richard Seldin Richard J. Wood William H. Overholt Janet D. Shanberge Sharon L. Woodcock Walter E. Parham John E. Shanks+ Wei-ling Wu+ Krista Piazza+ Laura B. Sherman Hong Yang Hector P. Prud’homme Howard Crampton Smith Jason Z. Yin Julie Reinganum Dorothy J. Solinger Renqiu Yu Edward J. M. Rhoads Richard H. Solomon William H. Yu Gilbert Rozman Mary Ellen Somerville+ Donald S. Zagoria Ronald Sakolsky+ Carl J. Spector Eric & Andrea Zinn+ Janet Schoor+ William M. Speidel Adam Segal

Thomas M. Spiro Student/Other Daniel A. Sharp Lisa Spivey Mark Sidel Donald Anderson Carl W. Stern Ronald Suleski Karen Anderson Jeremy J. Stone Tobias Watson+ William Armbruster Patricia Stranahan Sherrie Rollins Westin Susan Bachman+ Gerald Stryker Sue Williams Roy Bergeson+ Roger W. Sullivan Margaret S. Wilson Gloria Berenson & Irving Lisa S.Y. Sun Madeleine Zelin Broudy+ Robert G. Sutter Suisheng Zhao David G. & Erna Brown David S. Tappan, Jr. David S. Zweig Craig N. Canning Harry E.T. Thayer

2006 Annual Report 21 Statement of Financial Position

Condensed Statement of Financial Position – September 30, 2006 September 30, 2006 September 30, 2005 ASSETS Cash and cash equivalents $1,249,539 $1,032,221 Investments 3,521,795 2,054,315 Grants and contributions receivable, net 544,923 372,117 Discount on Receivables (168,540) Other receivables 245,048 670,978 Program advances, exchanges and other assets 101,060 39,256 Grants and Contributions Receivable (long term portion) 4,000,000 Security deposits 5,838 6,413 Property and equipment 11,355 25,090 TOTAL ASSETS $9,511,018 $4,200,390

LIABILITIES Accounts payable and accrued expenses $236,929 $261,725 Refundable advances 126,075 Deferred rent 6,817 6,606 TOTAL LIABILITIES 369,821 268,331

NET ASSETS Unrestricted Undesignated 1,833,906 378,821 Board-designated 617,045 1,294,090 2,450,951 1,672,911 Temporarily restricted 6,690,246 2,259,148 TOTAL NET ASSETS 9,141,197 3,932,059

TOTAL LIABILITIES AND NET ASSETS $ 9,511,018 $4,200,390

Condensed Statement of Activities for the Year Ended September 30, 2006 Temporarily 2006 2005 Unrestricted Restricted Totals SUPPORT AND REVENUE: U.S. Government grants $ ~ $ 656,877 $ 656,877 $ 754,157 Contributions 1,380,610 6,083,577 7,464,187 1,731,897 Special events (net) ~ ~ ~ 1,223,523 Investment income and other 253,144 ~ 253,144 66,507 Net assets released from restrictions 2,309,356 (2,309,356) ~ ~ TOTAL SUPPORT AND REVENUE 3,943,110 4,431,098 8,374,208 3,776,084

EXPENSES: Program services 2,217,808 ~ 2,217,808 2,564,145 Management and administration 793,362 ~ 796,362 650,130 Fund-raising 153,900 ~ 153,900 180,987 TOTAL EXPENSES 3,165,070 ~ 3,165,070 3,395,262

Change in net assets 778,040 4,431,098 5,209,138 380,822 Net assets beginning of year 1,672,911 2,259,148 3,932,059 3,551,237

Net assets end of year $2,450,951 $6,690,246 $9,141,197 $3,932,059

The above information was extracted from the audited financial statements, which are available upon request.

22 National Committee on U.S.-China Relations Condensed Statement of Financial Position October 1 – December 31, 2006 December 31, 2006 ASSETS Cash and cash equivalents $ 3,605,558 Investments 1,045,642 Grants and contributions receivable, net 404,309 Other receivables 485,803 Program advances, exchanges and other assets 132,383 Grants and Contributions Receivable (long term portion) 3,831,460 Security deposits 5,839 Property and equipment 9,695 TOTAL ASSETS $ 9,520,689

LIABILITIES Accounts payable and accrued expenses $ 190,143 Refundable advances 10,000 Deferred rent 6,158 TOTAL LIABILITIES 206,301

NET ASSETS Unrestricted Undesignated 2,791,794 Board-designated 504,494 3,296,288 Temporarily restricted 6,018,100 TOTAL NET ASSETS 9,314,388

TOTAL LIABILITIES AND NET ASSETS $ 9,520,689

Condensed Statement of Activities for Period Ended December 31, 2006 Temporarily December 31, 2006 Unrestricted Restricted Total SUPPORT AND REVENUE: U.S. Government grants $ ~ $ 144,455 $ 144,455 Contributions 37,889 61,018 98,907 Special events (net) 507,198 ~ 507,198 Investment income and other 64,622 ~ 64,622 Net assets released from restrictions 877,619 (877,619) ~ TOTAL SUPPORT AND REVENUE 1,487,328 (672,146) 815,182

EXPENSES: Program services 400,747 ~ 400,747 Management and administration 189,591 ~ 189,591 Fund-raising 51,653 ~ 51,653 TOTAL EXPENSES 641,991 ~ 641,991

Change in net assets 845,337 (672,146) 173,191 Net assets beginning of year 2,450,951 6,690,246 9,141,197

Net assets end of year $ 3,296,288 $ 6,018,100 $ 9,314,388

The above information was extracted from the audited financial statements, which are available upon request.

2006 Annual Report 23 STAFF 2006

President Program and Stephen A. Orlins Executive Assistant Jenna Crouch Vice President Jan Carol Berris Administrative Manager Daya Martin Vice President for Administration Executive Assistant Rosalind Daly Timothy Costello

Senior Director Accountant for Education Programs Patricia Gilani Margot E. Landman Interns Senior Director, Hilla Benzaken Corporate and Julia Famularo Public Programs Anne Phelan Linda Li Kelly McCaskill Senior Program Officers Matthew Niederhauser Ling Li Jonathan Tang Jonathan Lowet Thomas Wellvang Lei Yu Program Officers Anna Bautista Meredith Champlin

Program Assistants Katherine D. Forshay Jung Hwa Song

24 National Committee on U.S.-China Relations National Committee on United States-China Relations

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