NOVEMBER 6 MFA/MOFCOM PRESS BRIEFING:

UNCLAS SECTION 01 OF 02 BEIJING 003076 STATE PASS USTR SIPDIS E.O. 12958: N/A TAGS: APECO ECON ECIN PGOV PREL ETRD OVIP CN MY, SN SUBJECT: NOVEMBER 6 MFA/MOFCOM PRESS BRIEFING: PRESIDENT HU'S VISIT TO MALAYSIA, SINGAPORE, APEC SUMMIT, AND PRESIDENT OBAMA'S VISIT TO CHINA ¶1. Key points at the November 6 joint press briefing with MFA spokesperson Ma Zhaoxu and senior MOFCOM and MFA officials: -- President Hu's upcoming visit to Malaysia on November 10, China's first state visit there in 15 years, is intended to further mutual friendship and cooperation. Hu then proceeds to Singapore November 11 for a state visit (November 11-13) and the APEC economic leaders meeting (November 14-15). -- In addition to attending the APEC Summit November 14-15, Hu will "reinforce" China's trade and investment relations with Singapore, "scale up" bilateral cooperation, and sign "important documents" on key cooperation and infrastructure projects. -- China expects key messages coming out of the APEC Summit to be collective opposition to protectionism, support for Doha, promotion of sustainable growth, and regional economic integration. -- China looks forward to President Obama's state visit to Shanghai and Beijing November 15-18 following APEC. CHINA'S ECONOMIC AND TRADE MESSAGES AT APEC -------------- ¶2. At the November 6 joint Ministry of Foreign Affairs and Ministry of Commerce press conference on the upcoming Asia Pacific Economic Cooperation (APEC) Summit in Singapore, MOFCOM Vice Minister Yi Xiaozhun outlined China's economic and trade messages at APEC: -- Opposition to trade and investment protectionism: APEC member economies should abide by commitments made at the G20, and strive to facilitate an early economic recovery for the Asia Pacific economies. -- Doha: China hopes for continued progress. Member economies must build on existing achievements, while staying within negotiating modalities of the multilateral development agenda. -- Cooperation on Sustainable Development: China supports environment related goals such as energy reduction in its stimulus. China stands by its position on climate change that all developed and developing countries have common but differentiated responsibilities. -- Need to achieve Bogor Goals: Developed economies should meet trade and investment liberalization and facilitation goals by 2010, while developing economies should do so by 2020. The region's growth should not be derailed by the global financial crisis. ¶3. MFA Vice Minister He Yafei observed that 2009 marks the twentieth anniversary of APEC. APEC has achieved key goals in trade and investment liberalization, regional economic integration, and common prosperity. However, VFM He added, "the global financial crisis has not ended. Signs of recovery are evident, but recovery is not yet established." The Asia Pacific region is doing better than the rest of the world, but key challenges facing the region remain: Doha, protectionism, climate change, and energy security, among others, VFM He added. ¶4. Vice Minister He said China's expectations for APEC outcomes are: support for a coordinated response to the international financial crisis, sending a signal against protectionism and in favor of growth, further regional economic integration, and continued institutional reform of APEC. He added that President Hu will participate in the APEC Economic Leaders meeting, the APEC CEO Summit, and BEIJING 00003076 002 OF 002 APEC Business Advisory Council (ABAC) events. Hu's main focus at the Summit will be on coping with the global financial crisis, restoring economic growth, tackling climate change, and promoting food and energy security. PRESIDENT OBAMA'S VISIT TO CHINA -------------- ¶5. MFA officials also previewed President Obama's visit to China November 15-18, with stops in Shanghai and Beijing, emphasizing the following points: -- China looks forward to an in-depth exchange on Sino-U.S. relations, and regional and global issues. This is President Obama's first visit to China. -- As major economies, China and the U.S. share broad common interests and "vast prospects for cooperation." G20 meetings in 2009 have charted the course for a "new era" of a positive, cooperative, comprehensive relationship for the 21st century that involves "expanding areas of common interest". -- China looks for President Obama's visit to reaffirm the new status of bilateral relations. U.S.-China exchanges should be maintained at "high levels" as should cooperation on economic issues, trade, energy, counterterrorism, law enforcement, cultural, non-proliferation issues, and military exchanges. -- Additional topics to be discussed during the President's visit include global issues such as: the international financial crisis, climate change, nuclear safety, and food security. When asked about specifics of the visit, officials stated that "programs are still under discussion" and "President Obama will meet China's leaders when he visits". MARKET ECONOMY STATUS AND A/D CASES -------------- ¶6. When asked about whether President Obama's visit would bring progress on antidumping cases or granting of market economy status to China, VM Yi expressed China's "great concern" about the U.S. Commerce Department's decision November 4 to impose antidumping duties on $3.2 billion in 2008 Chinese steel exports of oil country tubular goods (OCTG) pipe, "the largest ever" case in value terms, he said. He also asserted that such U.S. measures are "unfair" trade measures that discriminate against Chinese companies. CHINA'S VIEW OF U.S. ROLE IN ASIA PACIFIC REGION -------------- --- ¶7. Responding to a question on China's views on the need for a U.S. role in the Asia Pacific as suggested recently by Singapore's Minister Mentor Lee Kwan Yew, VM He Yafei noted that "the U.S. is in APEC and a member of the APEC family". He noted that China welcomes the U.S. to "play a constructive role in the Asia Pacific region" and it is "natural" for the U.S. to play a role here. At the same time, parties should strive not to harm any others' interests, and should work to preserve the peace, prosperity, and stability of the region. HUNTSMAN