VZCZCXYZ0022
OO RUEHWEB

DE RUEHSO #0290 1021113
ZNR UUUUU ZZH
O 121113Z APR 07
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6725
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 7848
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 7965
RUCPDOC/USDOC WASHDC 2762

UNCLAS SAO PAULO 000290 
 
SIPDIS 
 
SIPDIS 
 
STATE INR/R/MR; IIP/R/MR; WHA/PD 
 
DEPT PASS USTR 
 
USDOC 4322/MAC/OLAC/JAFEE 
E.O. 12958: N/A 
TAGS: KMDR OPRC OIIP ETRD BR
SUBJECT: MEDIA REACTION: GLOBAL ECONOMY: US ACTION AGAINST CHINA AT 
THE WTO; SAO PAULO 
 
 
"Chinese Demand" 
 
Center-right national circulation daily O Estado de S. Paulo (4/12) 
editorialized: "Brazil should root for a US victory in the action 
the USG filed against subsidies given to the Chinese industrial 
sector.... It is a matter of contesting, based on international 
rules, subsidies given by the Chinese government both to industrial 
goods production and exports. If it participates in the action as a 
third interested party, Brazil will benefit as a much as the US from 
the probable condemnation of such Chinese practices.... There is a 
strong reaction in all Western markets against the invasion of 
manufactured products coming from China. Chinese industrial 
competitiveness results not only from cheap manpower, but also from 
China's undervalued currency and an enormous variety of fiscal 
incentives.... China currently faces several actions at the WTO and 
they continue to increase.... Washington has just initiated two 
additional complaints against China. In one of them, the Chinese 
government has been accused of lacking IPR enforcement. Products 
illegally copied in China have been sold throughout the world. 
Brazil is one of the countries most affected by such trade. 
Seventy-five percent of pirated products sold in Brazil come from 
Asia, mainly from China. The other complaint interests particularly 
the US and probably the European Union. It is about Chinese barriers 
against imported films, discs, books and software. In view of so 
many accusations of unfair trade practices and leniency towards 
piracy, Chinese officials are looking for allies among emerging 
nations. Brazilian officials finally should have realized, although 
with a significant delay, the enormous mistake they made when they 
recognized China as a market economy." 
McMullen