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Viewing cable 09BEIJING2044, SECRETARY LOCKE DISCUSSES JCCT, SED WITH VICE PREMIER WANG

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Reference ID Created Released Classification Origin
09BEIJING2044 2009-07-20 01:50 2011-08-23 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Beijing
VZCZCXRO1153
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #2044 2010150
ZNR UUUUU ZZH
R 200150Z JUL 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 5264
RUEHOO/CHINA POSTS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RHEHNSC/NSC WASHDC
UNCLAS BEIJING 002044 
 
STATE PASS USTR China Office 
COMMERCE FOR MAC IKasoff and NMelcher 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958 N/A 
TAGS: ETRD ECON CH
SUBJECT: SECRETARY LOCKE DISCUSSES JCCT, SED WITH VICE PREMIER WANG 
 
1. (SBU) Summary.  The Strategic and Economic Dialogue (SED) should 
focus more on macroeconomics while the Joint Commission on Commerce 
and Trade (JCCT) should focus on specific issues such as IPR or the 
Doha round according to Chinese Vice Premier Wang Qishan.  Wang 
praised the handling of the U.S.-China relationship during the 
transition to the Obama administration.  He said China's financial 
system is still developing and thus had been relatively shielded 
from the global financial crisis.  Secretary Locke said developing 
alternative energy sources could mean millions of jobs in both the 
U.S. and China and urged the Chinese government to avoid 
protectionism in favor of Chinese companies.  End Summary. 
 
2. (SBU) The agenda items for the Strategic and Economic Dialogue 
(SED) and the Joint Commission on Commerce and Trade (JCCT) should 
be as distinct as possible to avoid repetition, Chinese Vice Premier 
Wang Qishan told Secretary of Commerce Gary Locke June 16.  Wang 
believes the SED should be more strategic in nature, focusing on the 
effectiveness of the U.S. and Chinese economic stimulus packages, 
the global economic situation, macroeconomics and fiscal policy. 
Talks at the JCCT should concentrate on trade and investment, the 
Doha round, and battling protectionism during the global financial 
crisis.  Despite these two overarching dialogues, Wang noted the 
U.S. and China have "hundreds" of other mechanisms to facilitate 
information exchange and cooperation at the Ministerial level.  The 
value of these lower-level exchanges should not be underestimated, 
he emphasized. 
 
3. (SBU) Wang expressed disappointment upon hearing Secretary Locke 
would be unable to attend the July 27 - 28 SED talks in Washington. 
He said, as a result, Ministry of Commerce Minister Chen Deming may 
not come to the talks.  Secretary Locke explained USTR Ambassador 
Ron Kirk would attend and would serve as Chen's counterpart. 
 
4. (SBU) Wang praised the handling of U.S. - China relations during 
the transition to the Obama administration.  Historically, at the 
beginning of every new Presidency, diplomatic relations between the 
two countries undergo some "twists and turns" and can become 
strained.  Wang said there had been no such issues during this 
transition. 
 
5. (SBU) The global financial crisis had little impact on China's 
financial system, Wang continued.  This is not something to be proud 
of, he said, because it shows China's financial services and 
products are not sufficiently developed.  The crisis had a huge 
impact on the U.S. financial system because the U.S. had gone "too 
fast" with regards to financial innovation.  China has gone "too 
slow."  Nonetheless, China is committed to innovation in the 
financial sector, Wang stated. 
 
6. (SBU) Wang asked Secretary Locke what specific mandate the 
Department of Commerce had to get involved with issues such as 
climate change, energy and the environment.  Secretary Locke 
explained the Department's underlying focus is on innovation and 
scientific knowledge.  With regards to energy and climate change, 
the Secretary said all nations need to promote renewable and 
alternative energy now to avoid costs to the environment in the 
future.  Developing new sources of energy could mean millions of 
jobs in both the U.S. and China. 
 
7. (SBU) Secretary Locke urged Minister Wang to avoid protectionism 
in favor of local Chinese companies.  Foreign companies 
manufacturing products in China provide thousands of local jobs. 
Additionally, Secretary Locke said delaying deployment of advanced 
technologies to favor Chinese companies only impedes efforts to stop 
climate change. 
 
GOLDBERG