VZCZCXRO9130
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #7600 3592322
ZNR UUUUU ZZH
R 252322Z DEC 07
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 4193
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEAEPA/HQ EPA WASHDC
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RUEAUSA/DEPT OF HHS WASHINGTON DC
RUEHRC/DEPT OF AGRICULTURE WASHDC
RHEHNSC/NSC WASHDC

UNCLAS BEIJING 007600 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/CM SECOR/YAMAMOTO 
STATE PASS USTR FOR STRATFORD/WINTER/MAIN/WINELAND 
STATE PASS EX-IM BANK FOR LAMBRIGHT/MYROW 
 
E.O. 12958: N/A 
TAGS: ECON ETRD WTRO EFIN EINV CH
SUBJECT: SED SESSION VII: CONCLUDING SESSION OF SED III, 
DECEMBER 13, 2007 
 
REF:  A. STATE 168294 
  ¶B. BEIJING 7557 
  ¶C. BEIJING 7579 
  ¶D. BEIJING 7581 
  ¶E. BEIJING 7593 
 
(U) THIS MESSAGE IS SENSITIVE BUT UNCLASSIFIED.  PLEASE 
HANDLE ACCORDINGLY.  NOT FOR DISTRIBUTION OUTSIDE USG 
CHANNELS. 
 
¶1. (SBU) At the Concluding Session of the Third Round of 
the Strategic Economic Dialogue (SED), Vice Premier Wu Yi 
said the meeting was held during a critical period of Sino- 
United States relations and that it was a complete success. 
She summarized three important accomplishments: a focus on 
a comprehensive, long-term strategic approach in handling 
the bilateral economic relationship; reaching consensus on 
the interdependence of both economies and identifying 
mutual benefits (win-win outcomes); and delivering new 
vitality in managing the economic relationship.  She 
emphasized the SED as a QtimelyQ channel to implement the 
objectives of both President Hu Jintao and President George 
¶W. Bush, to resolve conflicts, strengthen mutual trust, 
provide guidance for other bilateral forums at a tactical 
level, injec new vigor and impetus in deepening business 
elations, and prevent politicization of economic problems. 
 
¶2. (SBU) Wu emphasized that part of SED IIIQs achievements 
included the signing of several agreements in areas such as 
food and product safety and safety of medical devices.  She 
said the United States and China addressed several areas of 
mutual concern including the environment and bilateral 
investment.  She noted the establishment of a joint Sino- 
United States Working Group on a 10-year plan for energy 
and environmental cooperation as a sign of strengthening 
bilateral relations in the area of energy and environmental 
cooperation.  Wu concluded by thanking United States 
Treasury Secretary Henry M. Paulson for his work in 
ensuring the success of the SED. 
 
¶3. (SBU) Treasury Secretary Henry Paulson thanked Wu for 
her gracious hospitality, for her work on food and product 
safety agreements and initiative in the illegal logging and 
investment dialogue.  Paulson emphasized that the tone of 
the Dialogue felt more Qcomfortable, indicating that the 
relationship is maturing.Q  He agreed with Wu that the SED 
should be seen as focusing on long-term strategic issues, 
but that progress should also be seen at the United States- 
China Joint Commission on Commerce and Trade (JCCT) and 
other bilateral forums at the tactical level.  He stressed 
the importance of direct communication on difficult issues 
and fostering a spirit of trust, emphasizing the need for 
better communication in the area of investment dialogue. 
 
¶4. (U) Treasury has cleared this cable. 
 
Randt