Xie Zhenhua - sacked former Environment Minister - given

UNCLAS SECTION 01 OF 02 BEIJING 000083 SIPDIS SENSITIVE SIPDIS STATE FOR OES/ETC - A. COVINGTON STATE ALSO FOR OES/EGC/VALDEZ AND EAP/CM DOE FOR INTERNATIONAL/PUMPHREY USDOC FOR NOAA/OFFICE OF GLOBAL PROGRAMS EPA FOR INTERNATIONAL - NGUYEN AND CHENG E.O. 12958: N/A TAGS: SENV PREL ENRG KSCA CH SUBJECT: Xie Zhenhua - sacked former Environment Minister - given powerful position as NDRC Vice Chairman Ref: A) Beijing 19536 05, B) Beijing 19413 05, C) Beijing 19325 05, D) Beijing 19222 05 ¶1. (SBU) Xie Zhenhua, the former Minister of the State Environmental Protection Administration (SEPA),who was sacked following the much publicized November 2005 chemical spill into the Songhua River, is about to be appointed as a Vice Chairman to the powerful National Development and Reform Commission (NDRC). He will likely take over the environmental portfolio on the commission. Xie's "rehabilitation" and his imminent appointment to a Minister-level position at the organization responsible for overseeing industrial planning and policy is noteworthy because of his strong environmental background and because many felt he was made an undeserving scapegoat for the Songhua spill. End Summary. Xie is Back -------------- ¶2. (SBU) Although not yet announced by China's State Council, the Hong Kong Press and NDRC's English-language website both state that Xie Zhenhua, former Minister of SEPA, will be appointed Vice Chairman of the NDRC, likely taking on the environmental portfolio. Xie resigned as SEPA Minster in December 2005 following the widespread negative national and international publicity that was generated following a massive nitrobenzene chemical spill at a state-owned China Petrochemical facility into the Songhua River in northern China. The pollutants flowed north into Russia, causing friction over the incident between Beijing and Moscow. ¶3. (SBU) At the time of the spill, many thought Xie was made a scapegoat for the disaster since the spill (and the subsequent cover-up) happened at a China Petrochemical facility, a national level State Owned Enterprise, over which SEPA has nominal environmental oversight at best. Many observers thought that SEPA, which was responsible for the cleanup, took the fall because it has traditionally been the underfunded and understaffed weak sister in the Chinese bureaucracy. The action also responded to popular frustration with SEPA's inability to enforce environmental regulations. ¶4. (SBU) Xie will become number five at the NDRC, as ONE of the 
twelve Vice Chairmen and he will be ONE of only four that are at the Minister level. The environmental portfolio was previously held by Jiang Weixin, who is at the Vice Minister level. It appears Jiang will remain on the NDRC, though it is unknown what portfolio he will hold. Organizational Note: The NDRC has ONE Chairman, Ma Kai, twelve Vice Chairmen, of which four are at the Minister level (Chen Deming, Wang Chunzheng, Zhang Guobao and Xie Zhenhua) and eight are at the Vice Minister level (Zhu Zhixin, Wnag Jinxiang, Jiang Weixin, Ou Xinqian, Zhang Mao, Zhang Xiaoqiang, Du Ying and Bi Jingquan). End Note. Comment -------------- ¶5. (SBU) The NDRC, which is responsible for formulating industrial policy and planning, is a powerful player in China's bureaucracy. In the past, the NDRC focused almost exclusively on issues such as maximizing resource utilization, often giving little thought to the environmental consequences of its industrial planning policies. More recently, the NDRC has turned much of its attention to curbing high levels of investment in industries such as steel and cement. China's recent rhetoric that it wants to develop an environmentally sustainable economy now has more "meat," as Xie has a strong environmental background and is now in a position to influence both industrial policy and environmental protection. Xie's quick "rehabilitation" from his disgrace following the Songhua incident, as well as China's first ever emphasis on environmental protection in the new 11th Five-Year Plan seems to be a clear indication that the leadership is beginning to take environmental problems more seriously. Xie's strong environmental credentials and his familiarity with both the United States Environmental Protection Administration and the White House Council on Environmental Quality bode well for future collaborations with NDRC on environmental issues. BEIJING 00000083 002 OF 002 Xie Zhenhua Bio -------------- ¶6. (SBU) Born in Tianjin, in November 1949. Han Nationality, Master of Law, Engineer. Graduated from Department of Engineering Physics, Tsinghua University in 1977 and obtained a Master's Degree of Law from the Department of Environmental Laws, Wuhan University in 1993. ¶7. (SBU) From 1980 to 1982, he worked in the State Commission for Construction. From May 1982 to May 1990, he worked in the National Environmental Protection Agency (NEPA),having successively held the posts of Assistant Engineer, Engineer, Director for Human Resources Management and Radioactive Environment Management and Director General for Human Resources and Administrative Management. From May 1990 to June 1993, he served as the Deputy Administrator of NEPA of China. He was also a member of Chinese Communist Party (CCP) in NEPA. From June 1993 to March 1998, Xie served as Administrator of NEPA, Secretary of CCP in NEPA and Vice Chairman and Secretary General of the Committee of Environmental Protection of the State Council. In September, 1997, Xie was elected as a member of the Central Commission for Discipline Inspection of the Communist Party of China. At the same time, he worked as Vice Chairman, the National Committee on Hygiene and HEALTH Promotion Campaign and was a member of the Commission for Construction of the Three Gorges of the State Council, a member of the Committee of Response to Nuclear Emergency of the State Council and Vice Chairman of China Council for International Cooperation on Environment and Development (CCICED). ¶8. (SBU) In March, 1998, he was appointed Minister of the newly formed (formerly called NEPA) State Environmental Protection Administration (SEPA) and Secretary of CCP Group in SEPA. In November, 2002, he was elected as member of the Central Committee of the CCP at its 16th session. In 2003, Xie was awarded the prestigious Sasakawa Environment Prize by the United Nations. The prize is awarded annually to individuals that make outstanding contributions to the stewardship and protection of the environment. During his time as SEPA Minister, Xie twice visited the United States and worked with the United States Environmental Protection Administration (EPA) as well as the White House Council on Environmental Quality (CEQ). Xie led the Chinese delegation to the first Ministerial level Joint Commission on Environmental Cooperation with EPA in October 2005. In December 2005, he resigned his position as SEPA minister following the Songhua incident. SEDNEY