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.

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- 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
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

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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

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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
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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
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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
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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