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Cablegate: November 6 Mfa/Mofcom Press Briefing:

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FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6754
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEHZU/ASIAN PACIFIC ECONOMIC COOPERATION
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UNCLAS SECTION 01 OF 02 BEIJING 003077

STATE PASS USTR

SIPDIS

E.O. 12958: N/A
TAGS: APECO ECON ECIN PGOV PREL ETRD OVIP CN
MY, SN

SUBJECT: NOVEMBER 6 MFA/MOFCOM PRESS BRIEFING:
PRESIDENT HU'S VISIT TO MALAYSIA, SINGAPORE, APEC
SUMMIT, AND PRESIDENT OBAMA'S VISIT TO CHINA

1. Key points at the November 6 joint press briefing
with MFA spokesperson Ma Zhaoxu and senior MOFCOM
and MFA officials:

-- President Hu's upcoming visit to Malaysia on
November 10, China's first state visit there in 15
years, is intended to further mutual friendship and
cooperation. Hu then proceeds to Singapore November
11 for a state visit (November 11-13) and the APEC
economic leaders meeting (November 14-15).

-- In addition to attending the APEC Summit November
14-15, Hu will "reinforce" China's trade and
investment relations with Singapore, "scale up"
bilateral cooperation, and sign "important documents"
on key cooperation and infrastructure projects.

-- China expects key messages coming out of the APEC
Summit to be collective opposition to protectionism,
support for Doha, promotion of sustainable growth,
and regional economic integration.

-- China looks forward to President Obama's state
visit to Shanghai and Beijing November 15-18
following APEC.

CHINA'S ECONOMIC AND TRADE MESSAGES AT APEC
-------------------------------------------

2. At the November 6 joint Ministry of Foreign
Affairs and Ministry of Commerce press conference on
the upcoming Asia Pacific Economic Cooperation (APEC)
Summit in Singapore, MOFCOM Vice Minister Yi
Xiaozhun outlined China's economic and trade
messages at APEC:

-- Opposition to trade and investment protectionism:
APEC member economies should abide by commitments
made at the G20, and strive to facilitate an early
economic recovery for the Asia Pacific economies.

-- Doha: China hopes for continued progress.
Member economies must build on existing achievements,
while staying within negotiating modalities of the
multilateral development agenda.

-- Cooperation on Sustainable Development: China
supports environment related goals such as energy
reduction in its stimulus. China stands by its
position on climate change that all developed and
developing countries have common but differentiated
responsibilities.

-- Need to achieve Bogor Goals: Developed economies
should meet trade and investment liberalization and
facilitation goals by 2010, while developing
economies should do so by 2020. The region's growth
should not be derailed by the global financial
crisis.

3. MFA Vice Minister He Yafei observed that 2009
marks the twentieth anniversary of APEC. APEC has
achieved key goals in trade and investment
liberalization, regional economic integration, and
common prosperity. However, VFM He added, "the
global financial crisis has not ended. Signs of
recovery are evident, but recovery is not yet
established." The Asia Pacific region is doing
better than the rest of the world, but key
challenges facing the region remain: Doha,
protectionism, climate change, and energy security,
among others, VFM He added.

4. Vice Minister He said China's expectations for
APEC outcomes are: support for a coordinated
response to the international financial crisis,
sending a signal against protectionism and in favor
of growth, further regional economic integration,
and continued institutional reform of APEC. He
added that President Hu will participate in the APEC
Economic Leaders meeting, the APEC CEO Summit, and

BEIJING 00003077 002 OF 002


APEC Business Advisory Council (ABAC) events. Hu's
main focus at the Summit will be on coping with the
global financial crisis, restoring economic growth,
tackling climate change, and promoting food and
energy security.

PRESIDENT OBAMA'S VISIT TO CHINA
--------------------------------

5. MFA officials also previewed President Obama's
visit to China November 15-18, with stops in
Shanghai and Beijing, emphasizing the following
points:

-- China looks forward to an in-depth exchange on
Sino-U.S. relations, and regional and global issues.
This is President Obama's first visit to China.

-- As major economies, China and the U.S. share
broad common interests and "vast prospects for
cooperation." G20 meetings in 2009 have charted the
course for a "new era" of a positive, cooperative,
comprehensive relationship for the 21st century that
involves "expanding areas of common interest".

-- China looks for President Obama's visit to
reaffirm the new status of bilateral relations.
U.S.-China exchanges should be maintained at "high
levels" as should cooperation on economic issues,
trade, energy, counterterrorism, law enforcement,
cultural, non-proliferation issues, and military
exchanges.

-- Additional topics to be discussed during the
President's visit include global issues such as: the
international financial crisis, climate change,
nuclear safety, and food security.

When asked about specifics of the visit, officials
stated that "programs are still under discussion"
and "President Obama will meet China's leaders when
he visits".

MARKET ECONOMY STATUS AND A/D CASES
-----------------------------------

6. When asked about whether President Obama's visit
would bring progress on antidumping cases or
granting of market economy status to China, VM Yi
expressed China's "great concern" about the U.S.
Commerce Department's decision November 4 to impose
antidumping duties on $3.2 billion in 2008 Chinese
steel exports of oil country tubular goods (OCTG)
pipe, "the largest ever" case in value terms, he
said. He also asserted that such U.S. measures are
"unfair" trade measures that discriminate against
Chinese companies.

CHINA'S VIEW OF U.S. ROLE IN ASIA PACIFIC REGION
--------------------------------------------- ---

7. Responding to a question on China's views on the
need for a U.S. role in the Asia Pacific as
suggested recently by Singapore's Minister Mentor
Lee Kwan Yew, VM He Yafei noted that "the U.S. is in
APEC and a member of the APEC family". He noted
that China welcomes the U.S. to "play a constructive
role in the Asia Pacific region" and it is "natural"
for the U.S. to play a role here. At the same time,
parties should strive not to harm any others'
interests, and should work to preserve the peace,
prosperity, and stability of the region.

HUNTSMAN

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