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Cablegate: Ambassador's Jiangsu Trip Builds Ties with Rising Local

VZCZCXRO3293
RR RUEHCN RUEHVC
DE RUEHGH #0477/01 3450616
ZNR UUUUU ZZH
R 110616Z DEC 09
FM AMCONSUL SHANGHAI
TO RUEHC/SECSTATE WASHDC 8411
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHGH/AMCONSUL SHANGHAI 9074

UNCLAS SECTION 01 OF 02 SHANGHAI 000477

SENSITIVE
SIPDIS

STATE FOR EAP/CM

E.O. 12958: N/A
TAGS: ECON EIND EINV PREL KIPR CH ETRD SCUL
SUBJECT: AMBASSADOR'S JIANGSU TRIP BUILDS TIES WITH RISING LOCAL
LEADERS

REF: A. SHANGHAI 472
B. SHANGHAI 381

SHANGHAI 00000477 001.2 OF 002


(U) This message is sensitive but unclassified. Not for internet
publication; not for dissemination outside USG channels.

1. (SBU) Ambassador Huntsman's three-city swing through Jiangsu
province December 2-4 offered the opportunity to meet a crop of
rising provincial leaders, introduce Consulate Shanghai's new
officer for Nanjing Affairs, discuss the local business climate,
promote intellectual property rights protection, speak with
university students, launch a Wuxi-Utah environmental
partnership, and re-visit the site where he and Mrs. Huntsman
adopted their daughter ten years ago. Officials rolled out the
red carpet at each stop - Nanjing, Yangzhou, and Suzhou - as
media turned out in force. End Summary.

------------------------------
Jiangsu Keen on IPR Protection
------------------------------

2. (SBU) On December 2, Jiangsu Provincial Party Secretary Liang
Baohua told Ambassador Huntsman that trade between Jiangsu and
the U.S. comprises 18 percent of the total U.S.-China trade
volume, at USD 58.8 billion. Jiang claimed that U.S. companies
have invested in 9,595 projects in Jiangsu. Moving to
educational exchange programs, Liang cited the Hopkins Nanjing
Center as well as joint programs with Yale, University of
Maryland, SUNY, and MIT. Jiangsu Province sends as many as 60
government and business leaders for training to the University
of Maryland and Harvard, he added. Liang and the Ambassador
discussed the value of educational exchange and the importance
of American students studying Chinese language. Liang expressed
his hope that some of the 100,000 American students President
Obama plans to send for study abroad to China will come to
Jiangsu.

3. (SBU) Liang told the Ambassador he hoped for increased
collaboration with the U.S. in technology and high-tech
equipment. He said China turns to other countries for assistance
with technology because dealing with the United States in this
area is fraught with difficulty. Citing a recent attempt by the
Jiangsu government to purchase two helicopters from an American
company, Liang said that the company had to renege on the
contract because the USG would not permit the export of the
helicopters to China. The Ambassador noted that export control
policy is currently under review in Washington. He added that
intellectual property rights (IPR) protection is also important
in spurring an increase in technology transfer. Noting that many
business people cite Jiangsu as a leader in IPR protection, the
Ambassador proposed working with Jiangsu to identify it as a
model IPR province and thus direct more American businesses to
Jiangsu. Liang eagerly welcomed the prospect of increased
cooperation and reiterated that Jiangsu takes IPR protection
very seriously.

--------------------------------------------- -
U.S. is Nanjing's Most Important Trade Partner
--------------------------------------------- -

4. (SBU) Nanjing Municipal Party Secretary Mr. Zhu Shanlu put
his city's relationship with the U.S. in the forefront by
arranging for the Ambassador to help open a photo exhibit
December 2 entitled, "Nanjing Memory in Sino-U.S. Relations."
Zhu stated his desire to deepen the cooperation between the U.S.
and Nanjing. Calling the U.S. the most important foreign trading
partner for Nanjing, Zhu highlighted the fact that Nanjing
hosted the EU-China Summit at the end of November, and noted
that Nanjing is bidding to host the second World Youth Olympics
scheduled for 2014. Zhu requested the Ambassador's assistance in
garnering support from the U.S. delegate to the International
Olympic Committee (IOC) during the February vote in Vancouver.
(Note: The Department has since informed us that we never adopt
a position on Olympic bids. End Note)

5. (U) The Ambassador called Nanjing the best historical example
of U.S.-China cooperation. He introduced Consulate General
Shanghai's new Nanjing outreach officer and spoke of the
importance of both educational exchange and economic
cooperation. (Note: Later the same day, the Ambassador delivered
a well-received speech to over 150 students, professors and
university officials at the Johns Hopkins - Nanjing University
Center for Chinese and American Studies. End Note) Zhu was
particularly interested in cooperation in the educational field
and said he would like to attract more American students to
Nanjing.

----------------------------------------

SHANGHAI 00000477 002.2 OF 002


Yangzhou Wants Foreign Direct Investment
----------------------------------------

6. (SBU) From Nanjing, the Ambassador and Mrs. Huntsman traveled
December 3 to Yangzhou, the city where they adopted their
daughter Gracie Mei in 1999 (ref A). After warmly welcoming the
Huntsman family, Yangzhou Municipal Party Secretary Ms. Wang
Yanwen underscored the importance of foreign direct investment
in Yangzhou. She named Colgate-Palmolive as the largest American
presence in Yangzhou, manufacturing approximately 1.5 billion
toothbrushes annually. Additionally, Yangzhou is hoping to
attract investment from high-tech industries. Wang also cited
the tourism industry as another important facet of Yangzhou's
economy and hoped the Ambassador's visit would improve
Yangzhou's profile among potential tourists.

7. (SBU) Yangzhou Acting Mayor Mr. Xie Zhengyi reiterated Wang's
comment on tourism to the Ambassador in a separate December 3
meeting and requested the Ambassador's assistance in promoting
Yangzhou as an attractive tourist destination to foreign
audiences. Xie noted that he also sought to promote the
development of Yangzhou enterprises in information technology
and alternative energy.

---------------------------------------------
Suzhou: China's 5th Largest Municipal Economy
---------------------------------------------

8. (SBU) In Suzhou on December 4, Party Secretary Mr. Jiang
Hongkun told the Ambassador that Suzhou boasts the fifth largest
municipal-level economy in China, behind only Shanghai, Beijing,
Guangzhou, and Shenzhen. Suzhou's exports in 2008, valued at USD
228.5 billion, represented approximately 10 percent of the total
value of all national exports. Jiang said that 20,000
foreign-invested companies had operations in Suzhou, including
Microsoft and General Electric.

9. (SBU) The Ambassador praised Suzhou for its large and growing
economy, relating comments from U.S. business representatives
who told the Ambassador that they had no complaints about their
investments in Suzhou. In response to Jiang's comments about the
negative impact of the global economic downturn on Suzhou's
export-oriented economy, the Ambassador said the coordinated
response by the U.S. and China was a positive example of the two
most important global powers focusing on shared interests in
solving a problem of global import.

10. (U) On the press side, the visit was highly publicized and
positively received, garnering substantial coverage from
regional outlets in addition to a few national outlets. Most
stories focused on the Ambassador's personal connection to
Yangzhou and Jiangsu, and highlighted his comments that today's
youth will play a critical future role in promoting mutual
understanding between the U.S. and China.

---------------------
Comment and Bio Notes
---------------------

11. (SBU) Jiangsu really rolled out the red carpet for the
Ambassador, providing excellent entree to introduce our new
Nanjing outreach officer and increase our contacts with rising
leaders. In each of these jurisdictions, from the province on
down, meetings with the top party official were arranged without
question. This despite the fact that our requests to meet with
Party institutions at lower levels have generally been denied in
Jiangsu, as elsewhere.

12. (SBU) Although Liang Baohua is near retirement age, all of
the Ambassador's other interlocutors are potential candidates
for higher office (for further details, see ref B). The two
Yangzhou leaders, Party Secretary Wang Yanwen (49) and Mayor Xie
Zhengyi (41), seem particularly likely to move up the political
career ladder. Only 41 years old and holding a rank equivalent
to a departmental Director-General in a Central Government
ministry, Xie is obviously a fast-rising political figure. If he
does well as Suzhou Municipal Party Secretary, Jiang Hongkun is
also likely to end up in a higher position, as past Suzhou
officials have done. End Comment and Bio Notes.

13. (U) Embassy Beijing cleared this report.
CAMP

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