PERSONNEL CHANGES AT MOFCOM MAY AFFECT EXPORT

S E C R E T SECTION 01 OF 02 BEIJING 001171

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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

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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