CODEL KERRY MEETING WITH PRC NPC FOREIGN AFFAIRS

UNCLAS SECTION 01 OF 03 BEIJING 001432

SENSITIVE
SIPDIS

STATE FOR SPECIAL ENVOY STERN
STATE FOR EAP/CM-HABJAN
STAET FOR OES, OES/EGC, OES/ENV, EAP/CM AND EB
STATE PASS TO CEQ SUTLEY
USDOE FOR INTERNATIONAL
EPA FOR INTERNATIONAL/MKASMAN
NSC FOR LOI

E.O. 12958: N/A
TAGS: SENV ENRG KGHG CH KN KS
SUBJECT: CODEL KERRY MEETING WITH PRC NPC FOREIGN AFFAIRS
COMMITTEE CHAIRMAN LI ZHAOXING

BEIJING 00001432 001.2 OF 003


SUMMARY
--------------


1. (SBU) Chinese National People's Congress (NPC) Foreign
Affairs Committee Chairman Li Zhaoxing and Senator John Kerry
(D-MA) May 27 both noted multiple avenues for cooperation on
climate change at the December 2009 UN Conference on Climate
Change in Copenhagen. Twenty-nine pieces of environmental
protection legislation had passed the NPC, and China was now
learning from the U.S. experience of three decades ago, said
Li. Senator Kerry told Chairman Li that the United States
now
had the technology to help China avoid making the same
mistakes it had, and if China purchased climate change
technology from the United States, it would gain more
efficient companies with lower production costs. China's
large population and "unbalanced" development made solving
this problem more difficult, said Chairman Li. The best
Chinese iron and steel plants rivaled those in the United
States, but the vast majority were "still backward" and
unable
to afford green technology. Senator Kerry emphasized that if
China continued to develop the way it was going, there would
be massive repercussions. Chairman said he agreed, but
underscored that countries should modernize in accordance
with
the common goals and principles of Bali and Kyoto. END
SUMMARY.


2. (U) Participants:

U.S. Participants
--------------
Senator John Kerry (D-MA)
Mrs. Teresa Heinz Kerry
A/DCM William Weinstein
Frank Jannuzi, Professional Staff Member, Senate Foreign
Relations Committee
Kathleen Frangione, Professional Staff Member, Senate Foreign
Relations Committee
LT Mitch McGuffie, Navy Escort
Christopher Green, First Secretary
Alex Berenberg, Notetaker

Chinese Participants
--------------
Li Zhaoxing, Chairman, Foreign Affairs Committee of the
National People's Congress
Other NPC officials

Pelosi Visit, Shanghai Initiatives
--------------


3. (SBU) At a May 27 lunch meeting, Chinese National People's
Congress (NPC) Foreign Affairs Committee Chairman Li Zhaoxing
noted to Senator John Kerry (D-MA) that Speaker of the House
Nancy Pelosi's recent visit to China had focused on bilateral
cooperation on environmental protection, and while in
Shanghai
she had learned about the new energy conservation measures in
place there. Factories built after 2006 must be fifty
percent
more energy efficient; car use was discouraged and there were
subsidies for those who used public transportation, said Li.
China, and particularly Shanghai, could learn much from the
United States in the field of wind energy, he added. Senator
Kerry highlighted that China was the world largest producer
of
solar panels, so both countries had much to learn from one
another.

Copenhagen Conference and Cooperation on Climate Change
-------------- --------------


4. (SBU) Chairman Li emphasized that U.S.-China
"commonalities" on climate change "far exceed differences."
The two counties were the largest oil importers, largest

BEIJING 00001432 002 OF 003


energy emitters, and largest energy consumers, so there were
multiple avenues for cooperation at the December 2009 UN
Conference on Climate Change in Copenhagen on environmental
protection, energy conservation, and climate change. Senator
Kerry underscored that if China and the United States acted,
"everyone would follow," and it would frame Copenhagen's
outcome. Li said he agreed that China and the United States
should mobilize other countries to "tackle the challenge
together." In the Arctic, noted Li, Russia and the Northern
European countries had an "important role to play." African
countries faced the threat of desertification and the
tropical
rainforests of Latin America were in danger of becoming
"tropical grasslands." Li remarked that he had seen a photo
comparison of Oregon's Mt. Hood a few decades ago and today,
noting the lack of its snowcap.

NPC Committee Responsibilities
--------------


5. (SBU) Li said he was a "freshman" in the NPC, and
explained
the three main responsibilities of the Foreign Affairs
Committee were foreign policy-related legislation,
supervision
of the State Council, Supreme People's Court, and People's
Procuratorate, and exchanges with foreign countries promoting
China's "peaceful development." In addition, the Foreign
Affairs Committee was responsible for the foreign liaison
activities of other committees, ensuring that meetings were
"mutually beneficial and on an equal footing." The NPC
environmental protection and resources committee was
responsible for related legislation, and 29 pieces of
environmental protection legislation had passed the NPC;
China
had learned from the U.S. experience of three decades ago, Li
stated. The latter committee also supervised inspections and
recommended shutting down violators whose emissions exceeded
permissible levels.

Purchasing Clean Energy Technology
--------------


6. (SBU) Senator Kerry told Li that the United States now had
the technology to help China avoid making the same mistakes
it
made decades earlier, including technology to make power
plants 50 percent cleaner, cutting 35-40 percent of
greenhouse
gases and at less cost, paying for itself in the first twenty
years. Regarding the 4,450 coal fired power plant units in
China today that are under 50MW, said the Senator, all could
be converted to solar power with today's technology. Senator
Kerry noted that if China purchased climate change technology
from the United States, it would gain more efficient
companies
with lower production costs and the United States would gain
as well.


7. (SBU) China's large population made solving this problem
more difficult, said Chairman Li. The situation in China was
"unbalanced," with the best iron and steel plants rivaling
those in the United States, but the vast majority "still
backward" and unable to afford green technology. According
to
Chinese government statistics, 43 million people lived below
the poverty line in China and by the standard of 1 USD per
person per day, there were 140 million living in poverty.
Although China's GDP was now third in the world, its per
capita GDP was far behind. He also noted difficulties in
purchasing technology from the United States, with
restrictions on dual-use items as well as high prices.

Need for Action
--------------


8. (SBU) Senator Kerry emphasized that China's economy and

BEIJING 00001432 003.2 OF 003


impact were so great that it was not appropriate to talk
solely on a per capita level. "The atmosphere doesn't
measure
that way," he said. If China continued to develop the way it
was going, there would be massive repercussions. Scientists
were more urgent with him in private than they were in
public,
and there was "bigger" damage happening "faster" than
expected, explained the Senator. Once the United States and
China agreed on a way forward, the marketplace would factor
the carbon costs into decisions, leading to a transformation
of the economy, he said. Chairman Li said he "could not
agreed more" with Senator Kerry's assessment and analysis,
and
China and the United States should work together to ensure
that a "tragic situation" would not take place. However, Li
said countries should modernize in accordance with the common
goals and principles of Bali and Kyoto. On a per capita GDP
basis, China ranked 103th or 104th in the world, he stated.
PICCUTA