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RUEHGH/AMCONSUL SHANGHAI 9070

UNCLAS SECTION 01 OF 03 SHANGHAI 000475 
 
SENSITIVE 
SIPDIS 
 
(U) SENSITIVE BUT UNCLASSIFIED.  NOT FOR DISSEMINATION OUTSIDE 
USG CHANNELS; NOT FOR INTERNET DISTRIBUTION. 
 
E.O. 12958: N/A 
TAGS: PREL ECON ETRD EINV PGOV PHUM CH
SUBJECT: POSITIVE VIBES FROM PRESIDENT'S VISIT; SHANGHAI SCHOLARS 
OUTLINE CHALLENGES 
 
SUMMARY 
 
------- 
 
 
 
¶1. (SBU) Shanghai-based scholars generally expressed positive 
views on President Obama's November visit to China during a 
panel discussion on December 7 but noted areas of friction and 
disagreement that remain unresolved.  They appeared optimistic 
that U.S.-China relations are headed in the right direction with 
opportunities to resolve common challenges.  Several scholars 
stressed, however, that there remain fundamental differences in 
the relationship, including views on Taiwan and human rights. 
End summary. 
 
 
 
PANEL DISCUSSION IN SHANGHAI 
 
---------------------------- 
 
 
 
¶2. (SBU) The Shanghai Association of American Studies (SAAS) 
hosted a panel discussion on "Obama's State Visit to China and 
Promise of U.S.-China Relations" December 7.  SAAS President 
Ding Xinghao, a veteran "U.S. watcher" of 30-plus years, 
moderated the panel, which featured Fudan University Center for 
American Studies (CAS) Director Shen Dingli, Fudan CAS Deputy 
Director Wu Xinbo, Shanghai Academy of Social Sciences (SASS) 
Vice Director Huang Renwei, Fudan professor Pan Rui, and 
University of Wisconsin professor Wang Jianwei, as well as the 
Consul General.  More than 100 scholars and graduate students 
attended along with business and media representatives and 
officials.  Consulate-produced pamphlets on the President's 
November 16 town hall meeting in Shanghai were eagerly received 
by attendees. 
 
 
 
POSITIVE REACTION TO THE PRESIDENT'S VISIT 
 
------------------------------------------ 
 
 
 
¶3. (SBU) Panelists expressed largely positive views on President 
Obama's November 15-18 visit to China.  Fudan's Wu Xinbo 
highlighted President Obama's "cooperative and collaborative 
approach" during the visit, and SASS's Huang Renwei pointed to 
the administration's constructive regional security efforts in 
Asia as demonstrated by the President's stops in Japan, South 
Korea, and Singapore.  Wang Jianwei characterized President 
Obama's visit to China as "an important visit for the strategic 
relationship."  Chris Qian, a PhD student at Fudan University, 
told PolOff after the discussion that his classmates all were 
impressed by the cooperative tone of the President's first visit 
to China, including his November 16 events in Shanghai. 
 
 
 
ADDRESSING COMMON CHALLENGES... 
 
---------------------------- 
 
 
 
¶4. (SBU) Presentations recognized the substantial broadening of 
the U.S.-China relationship from one focused on bilateral issues 
to one increasingly dominated by regional and global concerns. 
Fudan's Wu Xinbo said the President's visit to China 
demonstrated "new thinking" on many elements of the 
 
SHANGHAI 00000475  002 OF 003 
 
 
relationship.  President Obama is "more open-minded on China's 
rise," Wu stated, adding that the recent G-20 and APEC meetings 
(in Pittsburgh and Singapore, respectively) indicated "the 
United States is now more interested in partnership with China." 
 He also noted China's welcoming of the United States as an 
"Asia-Pacific nation" in the U.S.-China Joint Statement as an 
indicator of a shift in thinking on the Chinese side toward 
greater support of U.S. engagement in the region.  Huang Renwei 
from SASS added that the visit's theme of "addressing common 
challenges" such as Afghanistan, Pakistan, North Korea, Iran, or 
Iraq further underscored a sense of the United States desiring 
partnership with China. 
 
 
 
¶5. (SBU) On the eve of the Copenhagen talks, several panelists 
acknowledged the importance of climate change as a new 
challenge, but offered no details on possible U.S.-China 
environmental cooperation.  Pan Rui, Huang Renwei, and Wu Xinbo 
glossed over the issue, discussing climate change only in the 
context of economic challenges.  (Note: International affairs 
and regional security scholars previously have told CongenOffs 
they lack sufficient background to knowledgably discuss climate 
change, and they are concerned there are too few experts in 
Shanghai who understand the international political dimensions 
of climate change.  End note.) 
 
 
 
...AND CONFRONTING OLD ONES... 
 
---------------------------- 
 
 
 
¶6. (SBU) The professors said they anticipate a continuing 
struggle to resolve "old issues," particularly in the economic 
relationship.  Pan Rui predicted that 2010 would be a difficult 
year, with growing friction over trade disputes and renminbi 
(RMB) valuation.  Pan said the rising unemployment rate in the 
United States and the mid-term Congressional elections would 
combine to turn the U.S.-China economic relationship into a 
domestic political problem for elected officials in the United 
States.  He pointed out that the reemergence of the 
Schumer-Graham Bill on China's exchange rate illustrated the 
current level of discontent in the United States with U.S.-China 
economic ties.  It would require strong bilateral cooperation to 
move forward with Bilateral Investment Treaty (BIT) negotiations 
and other U.S.-China economic initiatives in the context of 
greater political scrutiny, Pan said. 
 
 
 
¶7. (SBU) Scholars also pointed out continuing regional security 
concerns that need to be resolved.  Huang Renwei and Fudan CAS 
Director Shen Dingli both highlighted the North Korea nuclear 
problem as an issue requiring renewed attention.  Shen and Wang 
Jianwei both noted that the close timing of President Obama's 
visit to China and his hosting of Indian Prime Minister Manmohan 
Singh in Washington served to highlight China's rivalry with 
India in Asia.  Wang contrasted the characterization of 
U.S.-India relations as a "global strategic partnership" in the 
U.S.-India Joint Statement with the U.S.-China Joint Statement 
focus on specific areas of mutual interest, asking rhetorically, 
"What happens to the relationship when those problems 
disappear?"  Huang added that the United States would need to 
reconcile its longstanding treaty alliance with Japan and its 
"new relationship" with China. 
 
 
 
...BUT SOME SEEMINGLY IMMOVABLE OBSTACLES REMAIN 
 
 
SHANGHAI 00000475  003 OF 003 
 
 
--------------------------------------------- --- 
 
 
 
¶8. (SBU) There remain fundamental differences in the 
relationship -- including views on Taiwan and human rights -- 
despite forward progress in other areas, the scholars said. 
Shen Dingli offered a lengthy discourse on Taiwan, reiterating 
Chinese concerns about U.S. arms sales and other issues.  Noting 
AIT Chairman Raymond Burghardt's November 24 comments in Taipei 
that language in the U.S.-China Joint Statement does not 
represent any change in the U.S. position concerning sovereignty 
over Taiwan, Shen observed the United States still has yet to 
accept Beijing's claim to sovereignty over Taiwan.  Shen and 
Huang Renwei added that human rights remain a difficult issue 
and were pessimistic about the future of the U.S.-China human 
rights dialogue.  However, Huang observed an increased U.S. 
willingness to engage with countries with a poor human rights 
record, such as Burma and North Korea. 
 
 
 
COMMENT: LEFT UNSAID 
 
-------------------- 
 
 
 
¶9. (SBU) Notably lacking in the Chinese scholars' various views 
were insights on the impact of Chinese domestic politics -- 
including the goals and interests of the Communist Party and its 
leaders -- on President Obama's visit specifically or the 
U.S.-China relationship writ large.  As a result, the discussion 
largely painted the United States as the main actor, with China 
forced to respond to U.S. interests and initiatives. 
CAMPBA