1. China still is not enforcing its own laws against intellectual property theft. [blanket statement much?]  

2. Congress needs to consider the growing unease in Asia about China’s militarization and its strategic intentions in the Western Pacific/East Asia region. The Commission examined China’s growing military power in classified briefings, in hearings, and during its trips to Asia. The Commission concluded that China is developing its military in ways that enhance its capacity to confront America. [Its "trips to Asia" were to Taiwan and India, not exactly neutral players – they came here as well. I wonder if China could do anything at all with its military that would not be considered as "enhancing its ability to confront America"? Just wondering.]

1. China made progress toward economic reforms in 2007, but only with great hesitancy and, even then, only with the prodding of other nations and the World Trade Organization. [yeah, 'cause everything good that happens here is a result of following the Washington Consensus, and everything bad occurs because Beijing doesn't do everything they're told]

2. China is unwilling to embrace market-oriented mechanisms, such as a freely traded currency, because it maintains a preference for authoritarian controls over its economy. [Worst statement in the whole report – someone is either stupid, ignorant, or batshit crazy. Damn, pick up a newspaper, you might learn that reasons other than political ideology exist for not floating the RMB immediately.]

3. China continues to refuse, despite repeated promises, to crack down effectively on trademark and copyright piracy of foreign goods sold within China. [Sure, that makes sense, if you believe that if the government wanted to, they could simply solve all these problems overnight. It's all just a matter of refusing to do it. Of course no one sane believes that, but otherwise . . .]

4. China’s economy remains heavily dependent on manufactured exports to sustain its rapid economic growth and to provide jobs for a rural population moving to urban areas in search of higher pay and benefits. Chinese authorities have not been willing to alter this pattern, even if pushing exports means violating WTO rules or free market principles. [what do "free market principles" have to do with anything? and are these guys afraid of Xinhua or People's Daily, etc.? I see stuff there every single day about economic reform measures designed to slow the economy, raise consumption and move away from exports. You might disagree with the speed or effectiveness of those reforms, but to refuse to acknowledge them at all makes little sense.]

5. The artificially low value of the renminbi provides a subsidy for Chinese exporters and serves as a hindrance to Chinese importers and consumers. [I see. Expensive imports are bad for Chinese consumers, huh? Then I would guess that these guys would see cheap Chinese imports to the U.S. as a consumer benefit, right?]

6. China’s mercantilist policies are taking a huge toll on small and medium sized manufacturing facilities and their workers in the United States. ["mercantilist"??? Gimme a break]

7. U.S.-based multinationals can transfer and have transferred much of their production to China. [Uh, manufacturing has been leaving the U.S. for decades. Later on in the summary (page 5), it says that "Manufacturing employment in the United States has declined for 50 years." I don't think U.S. companies were over here in the 60s and 70s.]

8. The push for reform in China’s economy in the 1980’s and 1990’s appears in some cases to have reversed . . .[and the push for free trade in the U.S. and EU appears to have stopped]

9. North Carolina appears to have realized few if any substantial benefits from China’s admission to the WTO, and the net effect of trade with China since its accession appears to be negative overall for North Carolina’s economy. [The summary uses the state of North Carolina, and the textile trade, as an example of how trade with China is harming the U.S. Why use that state? Why not, for example, use California instead? Or do you think they were purposely looking for a "bad" example? Nah, they wouldn't do that . . .]

The combination of China’s 2001 admission to the World Trade Organization (WTO), which gave it quota-free access to U.S. markets for its textile and clothing exports, and the subsequent U.S. grant of Most Favored [Trading] Nation status that lowered most tariffs on Chinese imports, battered North Carolina’s textile and apparel industries, and they never recovered. [Holy crap! That industry was artificially protected since 1978, representing some of the worst kinds of protectionist policies out there, aside from agricultural products. What a bad example.]

10. Chinese espionage in the United States, which now comprises the single greatest threat to U.S. technology. [I'm not sure what constitutes a threat to a country's technology exactly. Either way, doesn't this seem to be a little bit over the top, not to mention reminiscent of Japan bashing from the 80s?]

China no longer seeks only to attain parity with Western S&T, but instead is working to surpass the technological prowess of the West.

Chinese policies promote “leapfrogging,” whereby the development of Chinese technologies improves on established foreign technologies and bypasses intermediate domestic R&D steps. This speeds product development and saves China the time and cost of accomplishing the intermediate steps.