VZCZCXRO1045
RR RUEHDE RUEHDIR
DE RUEHAM #4923/01 3471530
ZNR UUUUU ZZH
R 131530Z DEC 07
FM AMEMBASSY AMMAN
TO RUEHC/SECSTATE WASHDC 1217
INFO RUEHBJ/AMEMBASSY BEIJING 0148
RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUEHLB/AMEMBASSY BEIRUT 2750
RUEHEG/AMEMBASSY CAIRO 3442
RUEHTV/AMEMBASSY TEL AVIV 0902
RUEHJM/AMCONSUL JERUSALEM 4744
RUEHKH/AMEMBASSY KHARTOUM 0024
RUEHUL/AMEMBASSY SEOUL 0043
RUEHIN/AIT TAIPEI 0024
RUEHNE/AMEMBASSY NEW DELHI 0266
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 02 AMMAN 004923 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ELA AND EEB 
 
E.O. 12958: 
TAGS: EINV ETRD PREL JO CH
SUBJECT:  JORDAN MARKETS ITSELF TO CHINA AS A PORTAL TO IRAQ AND THE 
REST OF THE ARAB WORLD 
 
REF:  A) Amman 4678, B) IIR 6 853 0121 08 
 
Sensitive but unclassified.  Not for internet distribution. 
 
¶1.  (U) King Abdullah made his fifth trip to China in late 
October-early November, a visit that highlighted Jordan's sustained 
effort to attract increased Chinese investment.  China is currently 
Jordan's third largest foreign trade partner --  China imports 
chemicals, leather, and agricultural products and exports chemicals 
and machinery --  with bilateral business transactions reaching 
$1.031 billion in the past year.  Jordan Investment Board (JIB) CEO 
Maen Nsour wants that figure to grow, and in the past three years 
has made four trips to China, "a wonderland for us," courting 
government officials and business representatives, visiting 
factories, and establishing personal relationships which he believes 
are the foundation for Jordan's expanding economic relationship with 
China.  His efforts have paid off:  in 2006, China invested $150 
million in Jordan in factories and plants for automobile assembly, 
the production of building materials, and the manufacture of 
electricity meters. 
 
More Bang for the Buck 
---------------------- 
 
¶2.  (SBU) Nsour explained that not only is Jordan's developing 
relationship with China lucrative, but also cost effective.  He 
argued that one million dollars worth of trade and investment 
promotion in Europe only generates five million in new investment. 
That same million can result in $200 million in investments from the 
Arab world and $150 million from China alone.  To further cash in, 
during his China visit, the King opened the fourth overseas JIB 
branch.  NOTE:  Jordan has JIB offices in Kuwait, the UAE, and 
Qatar, and hopes to open a U.S. office in Illinois or Michigan in 
¶2008.  END NOTE.  Nsour anticipates that the Beijing office, to be 
staffed by Jordanians and Chinese nationals, will be open for at 
least three years and he hopes it will yield $400-500 million in new 
investments in 2008.  For its part, China announced plans to open a 
branch of the China Development Bank in Jordan. 
¶3.  (SBU) As a means of luring Chinese investment, Jordan has hosted 
several trade fairs, including a four-day August event that 
reportedly included 53 Chinese companies representing construction 
and building materials, electronics, industrial machinery, textile 
industries and fabrics, home and office furniture, trucks and 
trailers, printing and packing machines, medical equipment, gas 
adapters, diesel generators and foodstuffs.  Despite Jordan's 
aggressive pursuit of Chinese investment, Nsour said that closing 
deals was quite easy due to Jordan's geographic location, political 
stability ("we're not the West Bank"), openness, investment 
incentives, and membership in the Greater Arab Free Trade Area 
(GAFTA) which, in 2005, liberalized the trade of goods among 17 Arab 
states (ref A).  As a result, agreements for the car, building 
material, and electrical meter factories were negotiated and signed 
in under six months, he reported.  In addition to these deals, in 
2007 China and Jordan signed three cooperation pacts:  a $2.6 
million deal for the installation of electronic scoreboards at 
Al-Hussein Youth City and Prince Mohammad Sport City; an agreement 
for China to train 30 Jordanian officials from the public sector and 
10 from the civil defense directorate; and a broader, unspecified 
agreement for Chinese financing of development projects. 
A Launch Pad 
------------ 
 
¶4.  (U) Nsour commented that like many other countries, China saw 
Jordan as a "stepping stone" for entry into the Iraqi market.  He 
mentioned future plans for a Chinese-Jordanian-Iraqi venture to 
assemble cars, as well as a Saudi-Chinese-Jordanian to assemble cars 
and small buses for shipment to Iraq.  Until these plans 
materialize, JIB is thrilled with the Chinese investment and hopes 
to benefit from technology transfers, cash infusions, and job 
creation.  Maher Matalka, Head of the Royal Court Economic 
Directorate, anticipates that the car assembly plant will eventually 
create 3,500 jobs.  He also hopes Jordan will develop an IT 
relationship with China, perhaps producing Arabic versions of 
China-produced software.  Nsour added that Jordan intends to 
leverage its relationship with China to lure investment from South 
Korea, Taiwan, and India. 
 
¶5.  (SBU) Jordan is also looking to expand its defense relationship 
 
AMMAN 00004923  002 OF 002 
 
 
with China.  There has been an increase in the travel of senior 
Jordan Armed Forces (JAF) officers to China, and the JAF is 
considering the purchase of K8 jet trainer aircraft to replace the 
CASA 101 trainers, as well as some other equipment.  Additionally, 
Jordanian officers have attended China's Senior Staff College and 
Engineer School, and participated in CA/Psyops Courses.  China also 
supplies fabric for the manufacture of military and police uniforms. 
 
 
Visit Amman's Classified Web Site at 
http://www.state.sgov.gov/p/nea/amman 
 
HALE