MARCH 28 MFA PRESS BRIEFING: U.S.-CHINA TRADE

UNCLAS SECTION 01 OF 03 BEIJING 005698 SIPDIS SIPDIS E.O. 12958: N/A TAGS: PREL ECON PARM PHUM CH IR KN SUBJECT: MARCH 28 MFA PRESS BRIEFING: U.S.-CHINA TRADE RELATIONS, IRAN, FMCT, ORGAN TRANSPLANTS, DPRK VISITOR, JAPAN, ZHAO YAN Summary -------------- ¶1. Key points made at the March 28 MFA press briefing are as follows: - U.S.-China trade frictions should not be politicized or overstated, while China's exchange rate regime must be rational and remain in line with the reality of the country's situation. - The March 30 foreign ministers' meeting on the Iranian nuclear issue is an important effort to resolve the matter peacefully. - Beijing has consistently supported efforts to promptly launch negotiations on the Fissile Material Cut-off Treaty (FMCT). - Accusations that China forcefully removes organs from criminals sentenced to death are complete fabrications. - During his recent visit to China, Korean Workers' Party (KWP) official Chang Song Taek traveled to Hubei and Guangdong Provinces and met Beijing Party Secretary Liu Qi. SIPDIS - A delegation representing seven Japanese China-Japan friendship organizations will visit China at the end of March and meet PRC leaders. - China's judicial authorities will handle NYT reporter Zhao Yan's case according to the law. End Summary. U.S.-China Trade Relations -------------- ¶2. During the regular March 28 MFA press briefing, several reporters asked about the PRC view on the recent visit by U.S. Senators Graham, Schumer and Coburn as well as the upcoming vote in Congress on the Schumer-Graham bill. MFA Spokesperson Qin Gang expressed the hope that the recent trip by Senators Graham, Schumer and Coburn will enhance their understanding of the situation in China and bilateral economic and trade relations, as well as help them adopt an objective and rational approach to handling bilateral ties. Trade frictions should be resolved through consultation and should not be politicized or overstated. Remarking that the RMB exchange rate is a sovereign Chinese issue, Qin asserted that Beijing has demonstrated a responsible and serious attitude on the matter. China will take actions that match the conditions of China's social and economic development and take into account the impact of an exchange rate adjustment on global economic development. China's exchange rate regime must be rational and remain in �0A;line with the reality of China's situation, he emphasized. ¶3. China maintains an optimistic view of U.S.-China trade relations and believes the general trend in bilateral trade is positive, despite certain problems, Qin remarked. Trade has generated tangible benefits for both countries and stimulated global economic growth, but trade frictions must be handled in a rational and sensible manner. Qin noted that Secretary of Commerce Gutierrez arrived in Beijing on SIPDIS March 27 and will meet with Premier Wen Jiabao, Vice Premier Wu Yi, Minister of Commerce Bo Xilai and officials from the State Intellectual Property Office. Qin also confirmed that National People's Congress (NPC) Foreign Affairs Committee Chairman Jiang Enzhu is leading a delegation to the United States this week. Beijing hopes that exchanges between the two countries' legislatures and commercial agencies will enhance mutual understanding and resolve issues of common concern. Iranian Nuclear Issue -------------- ¶4. While noting that China is "positively considering" its invitation to a March 30 meeting of P-5 and German foreign ministers in Berlin, Qin BEIJING 00005698 002 OF 003 stressed that the authority of the international nonproliferation regime must be safeguarded. There is still potential for resolving the Iranian nuclear issue within the IAEA framework, and the international community should step up its efforts. The Berlin meeting is an important effort to resolve the issue peacefully and China hopes that it will help promote this objective. Beijing is open to any suggestion that will help yield a diplomatic resolution, Qin concluded. FCMT Treaty -------------- ¶5. Responding to a CCTV reporter's question, Qin stated that China has consistently supported efforts to promptly launch negotiations on the Fissile Material Cut-off Treaty (FMCT). The FCMT is an important step toward multilateral disarmament, and its enactment will significantly reduce the risks posed by nuclear proliferation. Organ Transplants: Regulations and Accusations -------------- - ¶6. Asked about the motivation behind the regulations on organ transplants issued March 26, Qin maintained that there are no restrictions on foreigners' receiving transplants in China but that they must be conducted according to strict procedures. The organs must be donated voluntarily. Noting media reports that some transplanted organs are taken from executed convicts, Qin remarked that this is not a "significant phenomenon" and such cases are managed strictly and in the same manner as situations in which dying medical patients donate organs. Accusations that China forcefully removes organs from criminals sentenced to death are complete fabrications, aimed at slandering China's judicial system and based on ulterior motives, Qin claimed. ¶7. Responding to accusations by U.S.-based Falun Gong organizations of the existence of concentration camps in Liaoning Province where Falun Gong members' organs are harvested, Qin argued that these claims are absurd and "too ludicrous" for China to protest. Altering its original story, the Falun Gong has said that 6,000 detainees are being held in a hospital, but how can a small hospital hold so many people, Qin remarked. The Falun Gong has uttered many lies, such as claiming that nine million Communist Party members have left the Party. Were this account true, the Communist Party would have already collapsed, Qin argued. DPRK Official Visits China -------------- ¶8. Qin noted that Korean Workers' Party (KWP) official Chang Song Taek recently led a goodwill visit to China at the invitation of the Chinese Communist Party (CCP). He visited Hubei and Guangdong Provinces and met Beijing Party Secretary Liu Qi. Promoting bilateral relations and cooperation in the "new context" serves the interests of China and North Korea as well as regional peace and stability, Qin commented. Sino-Japanese Relations -------------- ¶9. Asked about a Japanese lawmaker's call for a summit meeting between President Hu Jintao and Prime Minister Koizumi, Qin simply stated that Japan and the international community clearly understand Beijing's position on Sino-Japanese relations. He confirmed that a delegation comprised of seven Japanese China- Japan friendship organizations will visit China at the end of March, meet with Chinese leaders and discuss ways to improve bilateral ties. Stressing that people-to-people exchanges play an important role in enhancing China-Japan relations, Qin stated that Beijing attaches great importance to the upcoming visit. Zhao Yan -------------- BEIJING 00005698 003 OF 003 ¶10. Asked for an update on the case of detained NYT journalist Zhao Yan, Qin reiterated that China's judicial authorities will handle the case according to the law. RANDT