PERSONNEL CHANGES AT MOFCOM MAY AFFECT EXPORT

S E C R E T SECTION 01 OF 02 BEIJING 001171 SIPDIS NOFORN SIPDIS USDOC FOR 532/BIS/OEA/EHOLLAND/TWILLIS USDOC FOR 532/OEE/GKRIZAY/KDELLICOLLI USDOC FOR 532/OEA/BKRITZER/MBORMAN USDOC FOR 532/OUS/ELEE/DHILL/MMANCUSO USDOC FOR ITA/IKASOFF USDOC FOR OIO/ADESSARAN/WZARIT SECSTATE FOR EAP/CM SECSTATE FOR EB/ESP SECSTATE FOR ISN CIA FOR WINPAC NSA FOR PROSTRAT E.O. 12958: DECL: 03/27/2018 TAGS: BEXP CH ETRD ETTC PARM PREL SUBJECT: PERSONNEL CHANGES AT MOFCOM MAY AFFECT EXPORT CONTROL COOPERATION Classified By: Jeannette L. Chu, Export Control Officer, for reasons 1. 4 b/h ¶1. (S) SUMMARY: In an informal off-the-record meeting, a working-level official provided hints of imminent personnel changes at the Minstry of Commerce (MOFCOM) and opined on the possible impact of these changes on export control cooperation with the U.S., including implementation of the Validated End-User program. ¶2. (S) On March 27, 2008, Embassy Export Control Officer (ECO) and Commercial Specialist (CS) met with JIANG Qianliang (STRICTLY PROTECT), Chief of Export Control Division II, Department of Mechanic, Electronic and High Technology Industries, Ministry of Commerce (MOFCOM),to thank JIANG for facilitating recent visits by Congressional staff, the Government Accountability Office and BIS, and to press for scheduling of end-use visits. JIANG shared his views on upcoming personnel changes at MOFCOM, in particular, the retirement of Vice Minister WEI Jianguo, which is expected to be announced in the near future. VM WEI has oversight responsibility for export control cooperation, which is carried out by the Export Control Divisions I and II under the Department of Mechanic, Electronic and High Technology Industries. VM WEI is currently on official travel in Africa, said JIANG, and is expected to announce his retirement upon returning to China. JIANG stated that speculation within MOFCOM is that VM WEI will be given a a position on the Chinese People's Political Consultative Conference (CPPCC),where he will continue to have some influence on Chinese policy makers. Alternatively, VM WEI may be given a post at a non-governmental organisation. (COMMENT: VM WEI was orginally scheduled to retire last year but held on to his post due to his position with the Central Committee on Discipline Inspection.) ¶3. (S) According to JIANG, VM WEI is expected to be replaced by JIANG Yaoping (no relation),who currently serves as a Vice Minister at the former Ministry of Information Industries (MII),with responsibility for foreign affairs and regulatory policy. The MII was part of the recent reorganisation of ministries announced by the government. JIANG Qianliang revealed that JIANG Yaoping is already on the scene at MOFCOM preparing to assume his new duties. When asked how the new Vice Minister may view export control matters including the Validated End-User program, JIANG Qianliang stated that JIANG Yaoping has no background in this area and would likely adopt a cautious approach to these issues. According to JIANG Qianliang, the new Vice Minister previously dealt with China's postal system. ¶4. (S) JIANG Qianliang went on to note that Assistant Minister CHEN Jiang will BEIJING 00001171 002 OF 002 be promoted to Vice Minister but retain his portfolio, which includes foreign investment issues. (NOTE: Former Assistant Secretary for Export Administration Christopher Padilla met with AM CHEN in January 2007. AM CHEN serves as back-up to VM WEI on high technology trade issues including export controls.) ¶5. (S) ECO inquired after WANG Qinhua, Director-General of the Department of Mechanic,Electronic and High Technology Industries, who has recently undergone knee surgery. JIANG Qianliang confirmed that the Director-General is still considering retirement within the next twelve to twenty-four months and observed that she will exercise restraint in raising sensitive topics such as export controls and the Validated End-User program with the new leadership. Nonetheless, JIANG proposed that the Embassy Commercial Minister-Counselor and ECO seek a meeting with DG WANG upon her return to work as a means of maintaining focus on the need for continued dialogue and forward movement on the Validated End-User program. ¶6. (S) JIANG Qianliang also revealed that ZHOU Quan, an official serving in his section,is currently at the Party School and not expected to return for several months. This will impact end-use visits as well as the processing of End-User/ End-Use Statements as Mdme ZHOU was one of only four people in his section. ZHOU has accompanied ECO on numerous end-use visits during the past three years and previously served abroad at the Chinese Embassies in Argentina and Spain. ECO expressed concern about the workload in Export Control Division I and was told that it would not be possible for JIANG to augment the resources in his section. ¶7. (S) ECO sought JIANG's views on moving the ball forward on VEU implmentation in light of the ongoing personnel changes at MOFCOM. She noted that BIS had yet to receive a response to their proposal for conducting on-site reviews relating to the VEU program. JIANG responded that the Department of Mechanic, Electronic and High Technology Industries is still grappling with a possible counter-proposal and that there is substantial internal disagreement on how to move forward with VEU. Echoing statements made by MOFCOM Deputy Director-General ZHOU Ruojun to recent USG visitors, JIANG pleaded for more time, commenting that he did not foresee a resolution to this issue in the immediate future. JIANG also remarked that as long as dialogue on VEU continued, then the program could remain alive and urged additional consultations at the highest levels of both governments. PICCUTA