VZCZCXRO5669
OO RUEHCN RUEHGH RUEHVC
DE RUEHBJ #3090/01 3160801
ZNR UUUUU ZZH
O 120801Z NOV 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6783
RUCPDOC/DEPT OF COMMERCE WASHDC IMMEDIATE
RUEATRS/DEPT OF TREASURY WASHINGTON DC IMMEDIATE
RUEHOO/CHINA POSTS COLLECTIVE IMMEDIATE

UNCLAS SECTION 01 OF 03 BEIJING 003090 
 
SENSITIVE 
SIPDIS 
 
STATE PASS USTR 
 
E.O. 12958:  N/A 
TAGS: SENV OVIP ETRD ECON PREL APEC CH
SUBJECT: U/S HORMATS MEETS VICE FOREIGN MINISTER 
WANG GUANGYA 
 
(U) This cable is Sensitive but Unclassified (SBU) 
and for official use only.  Not for transmission 
outside USG channels. 
 
¶1. (SBU) SUMMARY.  Executive Vice Foreign Minister 
Wang Guangya told Under Secretary Hormats during 
their November 9 meeting that the United States and 
China could make climate change a "highlight" of the 
bilateral relationship, beginning with the 
President's visit to Beijing early next week.  He 
said China never has and never will have the 
intention to exclude the United States from any 
Asia-Pacific grouping.  Wang and Hormats also 
discussed bilateral and multilateral trade issues, 
S&ED II preparation and G20 commitments.  END 
SUMMARY 
 
CLIMATE CHANGE: HIGHLIGHT OF BILATERAL RELATIONSHIP? 
 
¶2. (SBU) U/S Hormats began with an explanation of 
the importance the President placed on the issue of 
climate change.  China's efforts to reduce emissions 
and dependence on oil imports would benefit the 
world, and real progress on technical cooperation 
between the United States and China was possible. 
Wang responded that because both the United States 
and China are major energy producers and consumers, 
they both must take seriously efforts to increase 
energy efficiency and reduce use.  He noted 
increased cooperation would serve both countries, 
particularly with Copenhagen looming, and that good 
communication and joint efforts on energy technology 
could become a highlight of the U.S.-China 
relationship. 
 
¶3. (SBU) U/S Hormats emphasized the need to 
internationalize these commitments and make 
countries accountable for their Copenhagen 
commitments.  Monitoring would help ensure greater 
transparency and encourage individual countries to 
adhere to their agreed-upon actions.  He recognized 
the need for credibility on the part of the United 
States, China, and other major players to ensure 
that all nations abide by their commitments. 
 
¶4. (SBU) U/S Hormats stated that China should take a 
more proactive role in energy transparency.  He 
mentioned reports that China had ceased reporting 
crude oil and refined products monthly inventory 
data, which is counterproductive to efficiency and 
China's own interests.  He urged Wang to resume 
publishing that information and to begin work on 
reducing energy subsidies, which could in turn 
reduce hydrocarbon emissions.  Wang noted that he 
would pass on the message. 
 
POTUS VISIT LOOMING 
 
¶5. (SBU) Wang said China attached great importance 
to the President's first visit to China, and 
outlined three priorities going into the last week 
before the visit: 
 
--The joint statement should send a positive message 
to the world that the United States and China are 
working together to meet global challenges. 
 
-- Outstanding issues to be negotiated included 
China's core concerns.  China understood and 
sympathized with Washington's concern about 
terrorism and weapons proliferation.  China's 
sovereignty and territorial integrity concerns 
(Xinjiang, Taiwan, Tibet) affect the feelings of the 
Chinese population.  He hoped the United States 
would understand and respect these concerns. 
 
--Visit details including protocol, security, and 
media coverage still needed to be resolved. 
 
REGIONAL ARCHITECTURE: UNITED STATES WILL BE 
INCLUDED 
 
¶7. (SBU) On regional architecture and U.S. 
involvement in the region, Wang said he believed the 
Asia-Pacific region could not develop without the 
United States, and that China never has and never 
will have the intention to exclude the United States 
 
BEIJING 00003090  002 OF 003 
 
 
from any Asia-Pacific forum.  He noted that China 
attaches great importance to APEC, and that APEC 
still has a major role to play in trade 
liberalization despite the many changes in the 
global economic situation since its founding.  He 
said that although China, Japan, and South Korea are 
tightening relations with ASEAN, China considers the 
United States to be a country with worldwide 
political, military, and economic influence. 
 
TRADE REMEDIES ARE PROTECTIONIST 
 
¶8. (SBU) Wang urged the State Department to firmly 
oppose "protectionist" measures.  The United States 
must cooperate closely with China to exit from the 
financial crisis.  The two countries needed to send 
strong positive signals to boost international 
confidence despite slowing bilateral trade. 
Although the United States has taken limited 
measures, Beijing believes these have been 
discriminatory, and tell the world that it is 
becoming more protectionist during the financial 
crisis.  Chinese companies have been damaged in the 
process, and Beijing is feeling increased pressure 
to retaliate, despite reluctance to do so. 
 
¶9. (SBU) U/S Hormats noted that U.S.-China 
cooperation on our respective stimulus plans has 
benefited the global economy, and said the United 
States is committed to continuing the stimulus as 
long as is necessary.  He reassured Wang that the 
White House is committed to cutting the budget 
deficit when the economy has begun to recover but 
was not going to rush to remove the fiscal stimulus. 
He pointed out that the United States is still the 
most open major economy in the world, and that it is 
still very open to foreign trade and Chinese 
investment despite recent measures.  He urged China 
to work collaboratively with the United States and 
other economies through the WTO and the Doha Round 
of WTO negotiations.  Our two countries would always 
have some trade issues, and limited issues between 
the United States and China should not be viewed as 
unusual.  Wang replied that although some 
disagreements were inevitable, they should be solved 
via negotiations rather than punitive actions, which 
would only serve to escalate friction.  U/S Hormats 
also agreed that we would prefer negotiation, but 
would exercise our rights if needed. 
 
¶10. (SBU) Wang said that if the United States 
reduced restrictions on high-tech trade, economic 
relations with China could move toward a more 
balanced relationship.  U/S Hormats replied that 
there may be areas where we could loosen 
restrictions because the products in question were 
readily available, and it might be worthwhile to 
review these opportunities, but there may be other 
areas where we should tighten up.  He urged Chinese 
cooperation within APEC to reduce barriers on green 
technology. 
 
S&ED AND G20 
 
¶11. (SBU) U/S Hormats urged Wang to consider a 
plenary session at the S&ED II meetings in mid-2010, 
noting that former Secretary of State Kissinger and 
Zhou Enlai used similar methods 30 years ago to 
ensure all negotiating points were put in the 
appropriate context of the overarching bilateral 
relationship.  The United States wants to work 
collaboratively with China within the G20 framework 
to ensure the group's success.  He proposed that the 
United States and China incorporate regional 
economic topics of mutual concern into the S&ED's 
regional sub-dialogues. 
 
¶12. (SBU) Wang did not respond to the S&ED II 
plenary suggestion.  He said that China takes very 
seriously its leading role in the G20 and that China 
and the United States should increase cooperation 
given G20's importance in international economic 
affairs.  He also acknowledged the U.S. request to 
add an economic component to the regional sub- 
dialogue framework.  He told U/S Hormats that the 
MFA would be happy to brief their U.S. counterparts 
on Premier Wen's recent Africa trip, noting they 
 
BEIJING 00003090  003 OF 003 
 
 
"had nothing to hide." 
 
¶13. (U) U/S Hormats cleared this message. 
 
HUNTSMAN