The council advocates stronger ties between the U.S. and China. Frisbie described the current bilateral relationship as "fairly good" and on an upward trajectory despite continuing distrust. He suggested the two sides consider holding annual presidential summits.
He said it was too early to gauge the direction of reform under new Communist Party leader Xi Jinping, who becomes president in March. Washington is looking for Beijing to dilute the heavy state involvement in many sectors of China's economy.
Among its other recommendations, the council is warning that cyber security concerns threaten the commercial relationship. Frisbie urged the two governments to address it. He steered clear of making specific recommendations other than for American companies to have the best information technology protections in place, regardless of where the cyber attacks are coming from.
Last week, The New York Times and The Wall Street Journal reported that their computer systems had been infiltrated by China-based hackers, putting a spotlight on cyber intrusions that are becoming a growing economic and national security concern for Washington.