Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 09BEIJING425, CHINA ANNOUNCES MACHINERY INDUSTRY SUPPORT PLAN

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09BEIJING425.
Reference ID Created Released Classification Origin
09BEIJING425 2009-02-19 05:27 2011-08-23 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Beijing
VZCZCXRO6250
OO RUEHCN RUEHGH RUEHVC
DE RUEHBJ #0425/01 0500527
ZNR UUUUU ZZH
O 190527Z FEB 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2393
RUCPDOC/DEPT OF COMMERCE WASHDC IMMEDIATE
INFO RUEHOO/CHINA POSTS COLLECTIVE IMMEDIATE
UNCLAS SECTION 01 OF 02 BEIJING 000425 
 
SENSITIVE 
SIPDIS 
 
STATE PASS USTR FOR STRATFORD, WINTER, MCCARTIN, READE, VENKATARAMAN 
AND KEMP 
USDOC FOR NICOLE MELCHER, MARY SAUNDERS, RONALD LORENTZEN AND CAROLE 
SHOWERS 
 
E.O. 12958:  N/A 
TAGS: EIND EMIN ECON CH
 
SUBJECT:  CHINA ANNOUNCES MACHINERY INDUSTRY SUPPORT PLAN 
 
   REF: A. BEIJING 151 
        B. BEIJING 326 
 
1. (SBU) SUMMARY.  China's State Council announced February 4 a plan 
to support China's machinery industry, part of the government's 
campaign to bolster the country's slowing economy.  The plan aims to 
support the domestic machinery industry and reduce reliance on 
imported parts without running awry of China's WTO commitments.  A 
government researcher downplayed concerns about protectionist 
measures, stressing that joint ventures and foreign-owned machinery 
enterprises in China would also benefit from the support measures. 
Industry sources welcomed the plan but expressed concerns about the 
stimulus package and industry support plans leading to duplication 
and overcapacity.  End Summary. 
 
2. (U) At a February 4 meeting of the State Council, Premier Wen 
Jiabao approved a plan to support China's machinery industry.  The 
machinery industry support plan is the fourth of ten plans to 
provide a boost to sectors hard-hit by the economic downturn (see 
Ref A-B for auto, steel and textile industry support plans). 
The plan includes the following measures:  1) promote 
domestically-produced machinery, particularly for "priority 
projects" in infrastructure construction of high-speed railway, 
subway, natural gas pipeline transportation, liquefied natural gas 
(LNG) storage and transportation, mining, clean and efficient power 
generation, and extra-high voltage (EHV) power transmission; 2) use 
key projects of large industries such as steel, autos and textiles 
to promote domestically-produced machinery; 3) encourage mergers and 
consolidation of pillar enterprises in the industry; 4) increase 
lending to encourage machinery exports and exempt tariffs and VAT on 
imports of raw materials and key machinery parts; and 5) establish a 
risk compensation mechanism for the first use of 
domestically-produced machinery.  After the plan was announced, 
there was a sharp rise in machinery stocks on the Shanghai and 
Shenzhen markets. 
 
"No Need to Worry about Protectionist Measures" 
--------------------------------------------- - 
3. (SBU) According to State Council Development Research Center 
Deputy Director General Shi Yao Dong, one of the plan's strong 
points is the government's encouragement of innovation and support 
for domestically-produced technology and products.  Shi said China's 
machinery industry is weak in the production of machinery parts and 
high-end technologies, resulting in a tendency to import many key 
parts and components.  Approximately 70 percent of important 
machinery parts in China are imported from overseas.  This problem 
is compounded by a lack of R&D investment and poor coordination 
between industries, industrial associations and research 
institutions.  Shi predicted that the support measures would help 
domestic producers by promoting innovation and improving 
coordination between industry and research institutions.  However, 
he stressed that all machinery enterprises in China, including joint 
ventures and foreign firms operating in China, can benefit from 
these measures.  He claimed the plan is consistent with China's WTO 
commitments, adding that "there is no need to worry about 
protectionist measures." 
 
Industry Welcomes the Plan, Eager for More Details 
--------------------------------------------- ----- 
4. (SBU) The machinery industry welcomes the support plan, said 
China Machinery Industry Federation Department of International 
Cooperation Director Yang Junmian, whose Federation includes more 
than 50 machinery industry associations and institutions.  She said 
the plan will provide a much-needed boost to machinery companies 
hard-hit by the global economic slowdown.  Measures to promote 
domestically-produced machinery, including the proposed risk 
compensation mechanism for trialing Chinese-made machinery, are 
particularly welcome by industry.  Yang said the risk compensation 
mechanism should help domestic producers, whose machinery is often 
passed over for large-scale projects in favor of high-quality 
imported machinery.  She speculated that funds for this mechanism 
would come from the central government, local governments and 
companies themselves.  Song Xiaogang, Deputy Secretary General of 
the Federation, said he has heard positive feedback from companies 
regarding the plan to set up a special fund to promote R&D of 
machinery parts.  He said the plan to promote domestically-produced 
industry was a sign that the government recognizes the industry's 
potential impact on the country's economic security.  However, both 
Song and Yang acknowledged that the plan is short on details and 
said companies are eagerly awaiting more details on the plan. 
 
Concerns about Duplication and Overcapacity 
------------------------------------------- 
5. (SBU) According to Yang, the plan complements the government's 
four trillion yuan (USD 585 billion) stimulus package, which will 
 
BEIJING 00000425  002 OF 002 
 
 
fund many large-scale infrastructure projects requiring machinery. 
However, Yang expressed concerns about the possibility of the 
government duplicating projects and generating overcapacity.  She 
noted that the NDRC, which faces the difficult task of coordinating 
much of the spending of the stimulus package and industry support 
plans, may find it hard to avoid funding some unnecessary projects 
or funding duplicative projects in different provinces.  Lu Tie, a 
Chinese Academy of Social Sciences (CASS) Institute of Industrial 
Economics Researcher, shared these concerns.  He said local 
government officials were seeking stimulus package funds to protect 
local jobs, funds which would inevitably be used to save some 
factories that should be eliminated. 
 
Industry Consolidation Likely to Benefit SOEs 
--------------------------------------------- 
6. (SBU) One goal of the plan is to promote industry consolidation. 
Most machinery companies are small or medium-sized, with some large 
machinery factories concentrated in China's north-east provinces, 
Sichuan Province and central China.  Yang said the government's plan 
to encourage consolidation would likely benefit large-scale 
"backbone enterprises," most of which are state-owned enterprises 
(SOEs) under the supervision of the State Council's State-Owned 
Assets Supervision and Administration Commission (SASAC).  She noted 
that SASAC would probably take the lead in promoting consolidation 
with the long-term goal of improving the competitiveness of SOEs. 
 
Comment 
------- 
7. (SBU) Despite our contacts' assurances that the plan does not 
have protectionist measures, the plan includes a number of measures 
that may be inconsistent with China's G-20 pledge.  The clear 
support for domestically-produced machinery is troubling as it 
appears to discriminate against imports.  The proposed risk 
compensation mechanism and R&D fund appears aimed at boosting the 
use of domestic machinery instead of imported products.   Although 
joint ventures and foreign firms operating in China could benefit 
from support measures, it is also possible that the government would 
give priority to China's large SOEs, particularly for large-scale 
infrastructure projects.  Unfortunately, the announced plan offers 
few details on how the government will actually implement the plan, 
including such measures as the risk compensation mechanism and R&D 
fund.  However the plan is implemented, it appears that the big 
winners will likely be China's large SOEs.  End Comment. 
 
PICCUTA