Dave Johnson, a fellow at the Campaign for America’s Future, sends us this.

The new U.S.-China Economic and Security Review Commission report on China should be a “wake-up call” for the United States, says Scott Paul, director of the Alliance for American Manufacturing (AAM). Click here to read the full report and here for a comprehensive list of the commission’s recommendations beginning on page 355 of the report.

In sum: China is rigging trade using subsidies and currency manipulation, has barriers to bringing in U.S. goods and is forcing American companies to hand over proprietary technology. The result is our huge trade deficit is getting even worse. China also is acting more like it could become a national security threat.

This bipartisan commission was created by Congress in 2000 “to monitor, investigate and submit to Congress an annual report on the national security implications of the bilateral trade and economic relationship between the United States and the People’s Republic of China and to provide recommendations, where appropriate, to Congress for legislative and administrative action.”

Some key excerpts:

Trade: China has reversed its original promise to lower trade barriers and to treat foreign products and services fairly….[It forces] the transfer of technology to Chinese firms. These policies…strike at the heart of America’s greatest economic strength—its ability to innovate.

Trade deficit: “China continues to maintain an export-driven economy with policies that subsidize Chinese companies and undervalue [its currency]….For the first eight months of 2011, the U.S. trade deficit with China increased 9 percent over the same period in 2010. [There was] a 17 percent increase in the advanced technology products deficit for the same period over the previous year.

“Harming American interests”: “The Chinese government’s special treatment of state-owned enterprises (SOEs)…can overcome comparative advantages of competitors, thereby harming American economic interests.…China seeks to wall off a large portion of its economy from foreign competition.”

Forced-transfers of technology: “China maintains policies of forced technology transfer in violation of international trade agreements and requires the creation of joint venture companies as a condition of obtaining access to the Chinese market.”

Piracy: “China has yet to create a system that effectively protects intellectual property; something that is required of all World Trade Organization (WTO) members. But U.S. business software companies still report that China is the world’s largest source of pirated software. About eight of 10 computers in China still run counterfeit operating system software.”

Network attacks: “In 2011, as in previous years, the U.S. government, foreign governments, defense contractors, commercial entities and various nongovernmental organizations experienced a substantial volume of actual and attempted network intrusions that appear to originate in China.”

State ownership: “…the Chinese government in the past several years has returned to relying on a system of state ownership and control of major sectors of its economy. The government directs a vast array of subsidies to favored industries and seeks to nurture particular technologies behind protective barriers. This is contrary to the spirit, and in many cases the letter, of China’s WTO commitments.”