(C) KUDOS AND FOLLOW UP QUESTIONS ON CHINA'S

C O N F I D E N T I A L STATE 080207 NOFORN SIPDIS E.O. 12958: DECL: 07/31/2034 TAGS: PINR BTIO ECIN EINV ETRD CH SUBJECT: (C) KUDOS AND FOLLOW UP QUESTIONS ON CHINA'S INVESTMENT TREATY NEGOTIATIONS (C-TN9-01438) REF: BEIJING 001536 Classified By: MICHAEL P. OWENS, ACTING DIR, INR/OPS. REASON: 1.4(C). ¶1. (C/NF) WASHINGTON ANALYSTS GREATLY APPRECIATE REFTEL ON CHINA'S INVESTMENT TREATY NEGOTIATIONS WITH FRANCE. GIVEN THE ADMINISTRATION'S REVIEW OF THE MODEL BILATERAL INVESTMENT TREATY (BIT),WE ARE MONITORING OTHER ONGOING INVESTMENT NEGOTIATIONS, ESPECIALLY AS THEY RELATE TO INCREASING INVESTMENT OPPORTUNITIES. OF PARTICULAR INTEREST ARE ADDITIONAL DETAILS ON CHINA'S DIALOGUE WITH OTHER COUNTRIES* INCLUDING THE UNITED STATES*REGARDING INVESTMENT NEGOTIATIONS, AND CHINA,S INTENTIONS FOR CURRENT AND FUTURE NEGOTIATIONS. THIS TYPE OF INFORMATION WILL BE USED TO PRODUCE FINISHED INTELLIGENCE THAT INFORMS POLICYMAKERS OF CHINA'S INVESTMENT NEGOTIATION STRATEGIES. ANY ADDITIONAL INFORMATION ON THE QUESTIONS BELOW WOULD BE GREATLY APPRECIATED, AS POST'S TIME AND RESOURCES PERMIT. MANY THANKS. ¶A. (C) ASIDE FROM INVESTMENT NEGOTIATIONS WITH CANADA, ASEAN, AND TRILATERAL TALKS WITH JAPAN AND SOUTH KOREA, IS CHINA ENGAGED IN OTHER INVESTMENT AGREEMENTS? PLEASE PROVIDE ANY FURTHER INFORMATION ON SECTORS BEIJING IS WILLING TO OPEN FOR FOREIGN INVESTMENT, OR SECTORS IT IS ATTEMPTING TO OPEN FOR ITS INVESTORS OVERSEAS. ¶B. (C) REGARDING THE UPDATED CHINA-FRANCE BIT, DOES POST HAVE MORE INFORMATION ON MARKET ACCESS PROVISIONS IN THE BIT (WE ASSUME VERY LIMITED, IF ANY)? WHICH CHINESE LEADERS PUSHED THE QUICK CONCLUSION, AND WHAT PROVISIONS WERE UPDATED OR STRENGTHENED? ¶C. (C) WHAT KIND OF PRIORITY DOES CHINA PLACE ON THE UNITED STATES BIT? WHAT ARE CHINA'S PRIMARY INTERESTS AND CONCERNS ABOUT NEGOTIATING A BILATERAL INVESTMENT TREATY WITH THE UNITED STATES? ITS OFFENSIVE INTERESTS AND SENSITIVE REDLINES? HOW IS CHINA PREPARED TO ADDRESS KEY OUTSTANDING ISSUES SUCH AS STATE TRADING, NATIONAL TREATMENT, AND GOVERNMENT PROCUREMENT? ¶D. (C) TO WHAT EXTENT AND IN WHAT SPECIFIC WAYS DOES BEIJING EXPECT A BIT TO FACILITATE CHINESE INVESTMENT IN THE US OR TO ATTRACT SPECIFIC INVESTMENT FROM THE US? ¶E. (C) WHAT LEVEL OF SUPPORT IS THERE AMONG TOP LEADERS (I.E. WANG QISHAN, WEN JIABAO, AND HU JINTAO) FOR THE BIT? ¶F. (C) TO WHAT EXTENT IS BEIJING LOOKING TO A NEW AGREEMENT AS A WAY TO SHIFT THE FOCUS AWAY FROM IMPLEMENTATION OF OUTSTANDING WTO COMMITMENTS? ¶G. (C) WHAT LESSONS IS BEIJING APPLYING FROM ITS NEGOTIATIONS OF BITS WITH OTHER COUNTRIES AND HOW DOES BEIJING ASSESS A BIT WITH THE UNITED STATES MIGHT AFFECT INVESTMENT AGREEMENTS WITH OTHER COUNTRIES? ¶2. (U) PLEASE CITE C-TN9-01438 IN THE SUBJECT LINE OF REPORTING IN RESPONSE TO THE ABOVE QUESTIONS. CLINTON