VZCZCXRO8678
RR RUEHCN RUEHGH
DE RUEHBJ #0083/01 0040935
ZNR UUUUU ZZH
R 040935Z JAN 07
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 3503
INFO RUEAEPA/HQ EPA WASHDC
RUCPDOC/USDOC WASHDC
RUCPDOC/USDOC WASHDC
RUEHGH/AMCONSUL SHANGHAI 6732
RUEHSH/AMCONSUL SHENYANG 7375
RUEHCN/AMCONSUL CHENGDU 7715
RUEHGZ/AMCONSUL GUANGZHOU 2115
RUEHHK/AMCONSUL HONG KONG 8690
RUEHIN/AIT TAIPEI 6197

UNCLAS SECTION 01 OF 02 BEIJING 000083 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR OES/ETC - A. COVINGTON 
STATE ALSO FOR OES/EGC/VALDEZ AND EAP/CM 
DOE FOR INTERNATIONAL/PUMPHREY 
USDOC FOR NOAA/OFFICE OF GLOBAL PROGRAMS 
EPA FOR INTERNATIONAL - NGUYEN AND CHENG 
 
E.O. 12958: N/A 
TAGS: SENV PREL ENRG KSCA CH
SUBJECT: Xie Zhenhua - sacked former Environment Minister - given 
powerful position as NDRC Vice Chairman 
 
Ref: A) Beijing 19536 05, B) Beijing 19413 05, C) Beijing 19325 05, 
D) Beijing 19222 05 
 
¶1. (SBU) Xie Zhenhua, the former Minister of the State Environmental 
Protection Administration (SEPA), who was sacked following the much 
publicized November 2005 chemical spill into the Songhua River, is 
about to be appointed as a Vice Chairman to the powerful National 
Development and Reform Commission (NDRC).  He will likely take over 
the environmental portfolio on the commission.  Xie's 
"rehabilitation" and his imminent appointment to a Minister-level 
position at the organization responsible for overseeing industrial 
planning and policy is noteworthy because of his strong 
environmental background and because many felt he was made an 
undeserving scapegoat for the Songhua spill.  End Summary. 
 
Xie is Back 
----------- 
 
¶2. (SBU) Although not yet announced by China's State Council, the 
Hong Kong Press and NDRC's English-language website both state that 
Xie Zhenhua, former Minister of SEPA, will be appointed Vice 
Chairman of the NDRC, likely taking on the environmental portfolio. 
Xie resigned as SEPA Minster in December 2005 following the 
widespread negative national and international publicity that was 
generated following a massive nitrobenzene chemical spill at a 
state-owned China Petrochemical facility into the Songhua River in 
northern China. The pollutants flowed north into Russia, causing 
friction over the incident between Beijing and Moscow. 
 
¶3. (SBU) At the time of the spill, many thought Xie was made a 
scapegoat for the disaster since the spill (and the subsequent 
cover-up) happened at a China Petrochemical facility, a national 
level State Owned Enterprise, over which SEPA has nominal 
environmental oversight at best. Many observers thought that SEPA, 
which was responsible for the cleanup, took the fall because it has 
traditionally been the underfunded and understaffed weak sister in 
the Chinese bureaucracy.  The action also responded to popular 
frustration with SEPA's inability to enforce environmental 
regulations. 
 
¶4. (SBU) Xie will become number five at the NDRC, as one of the 
twelve Vice Chairmen and he will be one of only four that are at the 
Minister level.  The environmental portfolio was previously held by 
Jiang Weixin, who is at the Vice Minister level.  It appears Jiang 
will remain on the NDRC, though it is unknown what portfolio he will 
hold. Organizational Note: The NDRC has one Chairman, Ma Kai, twelve 
Vice Chairmen, of which four are at the Minister level (Chen Deming, 
Wang Chunzheng, Zhang Guobao and Xie Zhenhua) and eight are at the 
Vice Minister level (Zhu Zhixin, Wnag Jinxiang, Jiang Weixin, Ou 
Xinqian, Zhang Mao, Zhang Xiaoqiang, Du Ying and Bi Jingquan).  End 
Note. 
 
Comment 
------- 
 
¶5. (SBU) The NDRC, which is responsible for formulating industrial 
policy and planning, is a powerful player in China's bureaucracy. 
In the past, the NDRC focused almost exclusively on issues such as 
maximizing resource utilization, often giving little thought to the 
environmental consequences of its industrial planning policies. 
More recently, the NDRC has turned much of its attention to curbing 
high levels of investment in industries such as steel and cement. 
China's recent rhetoric that it wants to develop an environmentally 
sustainable economy now has more "meat," as Xie has a strong 
environmental background and is now in a position to influence both 
industrial policy and environmental protection.  Xie's quick 
"rehabilitation" from his disgrace following the Songhua incident, 
as well as China's  first ever emphasis on environmental protection 
in the new 11th Five-Year Plan seems to be a clear indication that 
the leadership is beginning to take environmental problems more 
seriously.  Xie's strong environmental credentials and his 
familiarity with both the United States Environmental Protection 
Administration and the White House Council on Environmental Quality 
bode well for future collaborations with NDRC on environmental 
issues. 
 
 
BEIJING 00000083  002 OF 002 
 
 
Xie Zhenhua Bio 
--------------- 
¶6. (SBU) Born in Tianjin, in November 1949.   Han Nationality, 
Master of Law, Engineer.  Graduated from Department of Engineering 
Physics, Tsinghua University in 1977 and obtained a Master's Degree 
of Law from the Department of Environmental Laws, Wuhan University 
in 1993. 
¶7. (SBU) From 1980 to 1982, he worked in the State Commission for 
Construction. From May 1982 to May 1990, he worked in the National 
Environmental Protection Agency (NEPA), having successively held the 
posts of Assistant Engineer, Engineer, Director for Human Resources 
Management and Radioactive Environment Management and Director 
General for Human Resources and Administrative Management.  From May 
1990 to June 1993, he served as the Deputy Administrator of NEPA of 
China.  He was also a member of Chinese Communist Party (CCP) in 
NEPA. From June 1993 to March 1998, Xie served as Administrator of 
NEPA, Secretary of CCP in NEPA and Vice Chairman and Secretary 
General of the Committee of Environmental Protection of the State 
Council.  In September, 1997, Xie was elected as a member of the 
Central Commission for Discipline Inspection of the Communist Party 
of China.  At the same time, he worked as Vice Chairman, the 
National Committee on Hygiene and Health Promotion Campaign and was 
a member of the Commission for Construction of the Three Gorges of 
the State Council, a member of the Committee of Response to Nuclear 
Emergency of the State Council and Vice Chairman of China Council 
for International Cooperation on Environment and Development 
(CCICED). 
¶8. (SBU) In March, 1998, he was appointed Minister of the newly 
formed (formerly called NEPA) State Environmental Protection 
Administration (SEPA) and Secretary of CCP Group in SEPA.  In 
November, 2002, he was elected as member of the Central Committee of 
the CCP at its 16th session. In 2003, Xie was awarded the 
prestigious Sasakawa Environment Prize by the United Nations.  The 
prize is awarded annually to individuals that make outstanding 
contributions to the stewardship and protection of the environment. 
During his time as SEPA Minister, Xie twice visited the United 
States and worked with the United States Environmental Protection 
Administration (EPA) as well as the White House Council on 
Environmental Quality (CEQ).  Xie led the Chinese delegation to the 
first Ministerial level Joint Commission on Environmental 
Cooperation with EPA in October 2005.  In December 2005, he resigned 
his position as SEPA minister following the Songhua incident. 
 
SEDNEY