Guangzhou CCPIT Told by Beijing to Increase U.S. Exports to

UNCLAS GUANGZHOU 032397

SIPDIS

USDOC FOR 4420/ITA/MAC/MCQUEEN, DAS LEVINE
PACOM FOR FPA

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: ETRD ECON BEXP CH
SUBJECT: Guangzhou CCPIT Told by Beijing to Increase U.S. Exports to
China

REF: Guangzhou 31300

(U) This message is sensitive but unclassified. Please handle
accordingly.


1. (SBU) SUMMARY AND COMMENT: In a December 11 meeting with the
Foreign Commercial Service section, the President of the Guangzhou
office of the China Council for the Promotion of International Trade
(CCPIT) said that he had been ordered by Beijing to formulate a
plan, due on the first week of January 2007, to increase domestic
purchases of U.S. goods. This initiative seems to be national in
scope and suggests China is seeking ways to reduce China its trade
surplus with the United States. END SUMMARY AND COMMENT.

Under Orders to Increase U.S. Imports
--------------


2. (SBU) Guangzhou CCPIT President Weng Wenxiang - accompanied by 15
representatives from companies, industry associations, and the city
government in environmental, energy, logistics, high-tech, medicine,
garment, and textile industries - told FCS December 11 that he had
ordered by his CCPIT superiors to increase exports from the United
States to Guangzhou. The central government has informed local
CCPITs that the current U.S.-China trade imbalance is "not
acceptable." Weng added that he has been told to submit a report to
Beijing during the first week of January 2007 detailing specific
steps taken by his office to increase U.S. exports. The October
decision by the central government to change the name of the Canton
Export Commodities Fair to the Canton Import and Export Commodities
Fair was part of this initiative (reftel).

What Chinese Industry Wants
--------------


3. (SBU) Specifically, Chinese industry is asking for the following:

- A representative from a local garment industry association said
Chinese garment manufacturers are trying to upgrade their operations
and raise industry standards; an increase in high-end U.S. clothing
available in China would assist in this transition.
- A representative from a textile industry association expressed
interest in purchasing manufacturing machinery from the United
States.
- A medical industry representative told us that U.S. companies can
help China upgrade its health care system, particularly with the
growth of specialty hospitals.


4. (SBU) Post's FCS officer encouraged the representatives to
contact U.S. industry associations and utilize the Department of
Commerce's Trade Leads bulletin board network to locate U.S.
suppliers. Some of the representatives will return to FCS during
the week of December 18 for one-on-one discussions.

Xiamen CCPIT Office Has Similar Effort
--------------


5. (SBU) Representatives from the Xiamen CCPIT informed FCS in late
November that they sought to locate between USD 5 million and USD 10
million of U.S. fruit and wine for purchase by domestic buyers.
During discussions with FCS and Foreign Agricultural Service (FAS)
officers, the representatives said the central-level CCPIT had
ordered the initiative.

GOLDBERG