Secretary Locke and Guangzhou Mayor Zhang

C O N F I D E N T I A L SECTION 01 OF 03 GUANGZHOU 000616 SIPDIS State for EAP/CM; EEB/CIP; EEB/TPP; INR/EAP; S/P State pass USTR for China Office; IPR Office NSC for JBader, JLoi Commerce for National Coordinator for IPR Enforcement USPTO for Int'l Affairs - LBoland, EWu DOJ for CCIPS - MDubose DOJ for SChembtob FTC for Blumenthal FBI for LBryant DHS/ICE for IPR Center - DFaulconer, TRandazzo DHS/CBP for IPR Rights Branch - GMcCray, PPizzeck ITC for LLevine, LSchlitt TREASURY FOR OASIA - DOHNER/WINSHIP E.O. 12958: DECL: 2019/11/02 TAGS: ETRD KIPR PREL ECON EINV PGOV CH SUBJECT: Secretary Locke and Guangzhou Mayor Zhang Discuss IPR, Asian Games and Guangzhou's Economy ¶1. (U) Classified by Consul General Brian L. Goldbeck for reasons 1.4 (b) and (d). ¶2. (SBU) October 27, 2009; 11:00 a.m.; Sam's Club, Panyu District, Guangzhou. ¶3. (SBU) Summary: In a brief 25-minute discussion October 27 in Guangzhou, Secretary of Commerce Gary Locke and Ambassador Huntsman discussed with Guangzhou Mayor Zhang Guangning opportunities for U.S. companies to bid on contracts for the 2010 Asian Games, the location of the new Guangzhou Consulate Compound, the city's economy and intellectual property rights (IPR) protection. End summary. 2010 Asian Games -------------- ¶4. (C) Secretary Locke congratulated Zhang on Guangzhou's selection as host of the November 2010 Asian Games. Zhang reciprocated by inviting Secretary Locke and Ambassador Huntsman to attend the event. Secretary Locke said a number of U.S. companies hoped to find opportunities related to the Asian Games and raised Motorola's interest in bidding on contracts for providing communications support. Zhang said he welcomed Motorola's bid. Secretary Locke asked that the bid receive full consideration. Guangzhou's Economy Picking Up -------------- ¶5. (C) Commenting on the previous day's groundbreaking ceremony for the Guangzhou New Consulate Compound (NCC), Zhang enthusiastically told the Ambassador that he thought the NCC site was "a really good location!" Zhang said that, years earlier when the USG negotiated the purchase of the site, the surrounding area was a much less attractive location. ¶6. (C) Zhang spoke positively about his September 2009 visit to Los Angeles, where he discussed economic issues with the mayor. He also mentioned how, as the financial crisis was beginning in 2008, he was at a Stanford University training program and had an opportunity to see the crisis first hand. Though the economic crisis muted Guangzhou's GDP growth, Zhang said that the city was on track to meet its 10% growth target for the year. Zhang praised Secretary Locke's previous efforts as governor of Washington to promote business with China, adding that the opening of the first Wal-Mart store in Guangzhou being celebrated that day showed how close U.S.-China business ties really were. IPR a Requirement for Innovation -------------- GUANGZHOU 00000616 002 OF 003 ¶7. (C) Changing Guangzhou from a manufacturing center to a hub for research and development and high technology would require strong enforcement of IPR, Secretary Locke told Zhang. Noting that some manufacturing companies were already in the process of moving their operations to other parts of China or even to Southeast Asia or Africa, Secretary Locke said that to attract more high-tech companies and protect domestic Chinese inventors and innovators, IPR had to be a priority. Secretary Locke called Guangzhou's plans to diversify the nature of its economy "very wise," and expressed his interest in hearing how the implementation of IPR policy in the city might play out. ¶8. (C) Zhang said he firmly agreed with Secretary Locke's views on IPR, saying that "if Guangzhou cannot protect investors' interests, they will cease to invest." In response to Secretary Locke's offer to partner with China to assist with training, enforcement or other IPR-related cooperation, Zhang recalled that former Vice Premier Wu Yi had held a training program in Beijing for China's mayors on IPR issues. Zhang said that there were still leaders at the local level in China who were not committed to protecting IPR, but that they would be punished when caught. Nonetheless, according to Zhang, most mayors in China shared Zhang's stance to "firmly protect IPR." ¶9. (SBU) Participants: U.S. -------------- Secretary of Commerce Gary Locke Amb. Jon M. Huntsman, Jr., Embassy Beijing Consul General Brian L. Goldbeck Rick Wade, DOC Deputy Chief of Staff Michelle O'Neill, DOC Acting U/S Travis Sullivan, DOC Director of Policy Francisco Sanchez, DOC Senior Advisor Ira Kasoff, DOC DAS for Asia Neil Ashdown, Embassy Beijing Chief of Staff William Zarit, Embassy Beijing Senior Commercial Officer Steven Chan, Deputy Director, OCEA Ireas Cook, Guangzhou Principal Commercial Officer Lisa Rigoli, TFO Beijing Kurt Aufderheide, Guangzhou Political Officer (notetaker) James Brown, Interpreter PRC --- Guangzhou Mayor Zhang Guangming Li Rongcan, Guangzhou Vice Mayor Chen Rugui, Secretary General Li Ming, Guangzhou Foreign Affairs Office Director Liang Guixuan, Guangdong DOFTEC Deputy Director General Tan Yinghua, Panyu District Party Secretary Lou Xukui, Panyu District Government Director General GUANGZHOU 00000616 003 OF 003 Wal-Mart -------------- Ed Chan, President, Wal-Mart China Barry Friedman, Vice President, Wal-Mart China ¶10. (U) Embassy Beijing and the Foreign Commercial Service cleared this cable. GOLDBECK