VZCZCXRO4676
RR RUEHCN RUEHGH
DE RUEHGH #0021/01 0220346
ZNR UUUUU ZZH
R 220346Z JAN 10
FM AMCONSUL SHANGHAI
TO RUEHC/SECSTATE WASHDC 8490
INFO RUEHBJ/AMEMBASSY BEIJING 3257
RUEHCN/AMCONSUL CHENGDU 2350
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHGZ/AMCONSUL GUANGZHOU 0807
RUEHHK/AMCONSUL HONG KONG 2522
RHEHAAA/NSC WASHINGTON DC
RUEHSH/AMCONSUL SHENYANG 2341
RUEHIN/AIT TAIPEI 2139
RUEHGH/AMCONSUL SHANGHAI 9157

UNCLAS SECTION 01 OF 03 SHANGHAI 000021 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL SENV ECON EINV PGOV KIPR OVIP MURRAY PATTY
CH, TW 
SUBJECT: CODEL MURRAY: ECONOMIC COOPERATION -- NOT TAIWAN ARMS -- 
HIGHLIGHTED IN DISCUSSIONS WITH SHANGHAI LEADERS 
 
(U) Sensitive but unclassified.  Not for dissemination outside 
USG channels; not for Internet distribution. 
 
 
 
¶1. (SBU) Summary: Shanghai Municipal leaders highlighted 
U.S.-China trade and investment cooperation in their meetings 
with CODEL Murray on January 15.  Municipal Communist Party 
Secretary Yu Zhengsheng focused on the transportation sector in 
particular, pointing to General Motors (GM) and General Electric 
(GE) as examples of positive cooperation.  Neither Yu nor 
Shanghai Municipal People's Congress Vice Chairman raised the 
question of U.S. arms sales to Taiwan with Senator Murray and 
her colleagues, suggesting the Central Government's rhetoric on 
this issue has little resonance with local Chinese leaders whose 
chief priority remains economic development.  End Summary. 
 
 
 
Shanghai Party Secretary:  Economy Rolling Along 
 
--------------------------------------------- --- 
 
 
 
¶2. (SBU) Shanghai Municipal Communist Party Secretary Yu 
Zhengsheng opened the January 15 meeting with CODEL Murray by 
remarking that President Obama's November 2009 visit to Shanghai 
was "very successful" and served to underscore the positive and 
constructive nature of the U.S.-China relationship.  Shanghai's 
economy appears to have withstood the worst of the global 
financial crisis, Yu said, giving partial credit to U.S. 
business investment in the city.  Yu emphasized ongoing 
cooperation with General Motors (GM), noting that GM's 
production in Shanghai increased by approximately 50 percent in 
¶2009.  While it is unlikely the coming year will be able to 
duplicate the same level of success, Yu observed that domestic 
consumers' behavior has been the driving force behind GM's 
success in Shanghai. 
 
 
 
¶3. (SBU) Party Secretary Yu discussed new business projects 
between the United States and China with strong Shanghai 
involvement, including a deal to build several nuclear power 
plants.  He claimed American nuclear power technology was far 
more advanced than that of other countries, including France and 
Russia.  Yu also mentioned a new project with General Electric 
(GE) to produce airplane engines in China.  The strong economic 
cooperation between the U.S. companies and Shanghai, Yu claimed, 
would contribute to the industrial growth of both the United 
States and China. 
 
 
 
Municipal People's Congress: Focus on Infrastructure 
 
--------------------------------------------- ------- 
 
 
 
¶4. (SBU) In a separate meeting and lunch, Shanghai Municipal 
People's Congress (SMPC) Vice Chairman Hu Wei stressed that 
Shanghai has many economic and trade connections with several 
U.S. cities.  Shanghai's GDP grew by 8.7 percent in 2009 due in 
large part to these ties with the United States.  Currently, 
Shanghai is engaged in major infrastructure development for the 
Shanghai 2010 World Expo.  In view of the Expo's theme of 
"Better City, Better Life," the Shanghai Municipal Government is 
striving to improve environmental protection, he said, adding 
that the municipal government's goal is "cleaner air and cleaner 
water."  However, he acknowledged that Shanghai has many 
challenges, especially in the transportation sector.  In 
addition, Shanghai has too many skyscrapers and the municipal 
government has sought to improve "green" measures for tall 
buildings. 
 
 
 
¶5. (SBU) SMPC Vice Chairman Hu said while the United States and 
China have many differences, there are more reasons to 
 
SHANGHAI 00000021  002 OF 003 
 
 
cooperate, especially in terms of business.  During lunch, Hu 
and Senator Murray agreed that there needs to be increased 
bilateral cooperation on intellectual property rights (IPR) 
protection.  Hu also emphasized that the Shanghai Municipal 
Government wants to bolster its economy through green 
technology. 
 
 
 
Comment: Shanghai Leaders Avoid Taiwan Issue 
 
-------------------------------------------- 
 
 
 
¶6. (SBU) Comment: What was not said was perhaps the most notable 
point of the Senators' meeting with Yu and Hu.  Neither Party 
Secretary Yu -- a member of the Communist Party's Politburo and, 
thus, nominally belonging to China's "central" leadership -- nor 
SMPC Vice Chairman Hu raised the issue of Taiwan arm sales, the 
topic which dominated the CODEL's Beijing discussions.  The 
silence on this subject in Shanghai suggests the Central 
Government's harsh rhetoric on possible Taiwan arms sales by the 
United States has little resonance among local Chinese political 
leaders who continue to see the relationship with the United 
States primarily as an avenue to foster economic development. 
End Comment. 
 
 
 
Meeting Participants 
 
-------------------- 
 
 
 
¶7. (U) U.S. Participants at both meetings 
 
 
 
Senator Patty Murray 
 
Mr. Rob Murray, husband of Senator Murray 
 
Senator Christopher Bond 
 
Senator Roland Burris 
 
Mr. Evan Schatz, Legislative Director, Office of Senator Murray 
 
Mr. C. Michael DuBois, Senior Legislative Assistant, Office of 
Senator Bond 
 
Mr. Travis Lumpkin, Legislative Assistant, Office of Senator 
Murray 
 
LTC Rich Root, U.S. Army Senate Liaison Office 
 
LT Justin Cox, Office of Attending Physician 
 
Ms. Beatrice Camp, Consul General, U.S. Consulate 
 
Ms. Fei Yuying, Interpreter, U.S. Consulate 
 
Mr. Jessup Taylor, Notetaker, U.S. Consulate 
 
 
 
¶8. (U) Chinese Participants at Party Secretary Yu Meeting 
 
 
 
Yu Zhengsheng, Secretary, Shanghai Municipal Party 
 
Jin Mao, Member, Foreign Affairs Committee, National People's 
Congress 
 
Yao Mingbao, Secretary General, Standing Committee, Shanghai 
Municipal People's Congress 
 
Ding Xuexiang, Secretary General, Municipal Party Standing 
 
SHANGHAI 00000021  003 OF 003 
 
 
Committee 
 
Li Mingjun, Director, Shanghai Municipal Foreign Affairs Office 
 
Peng Fang, Director, Foreign Affairs Office, National People's 
Congress 
 
Wang Zhong, Vice Director, Budget Committee, Shanghai Municipal 
People's Congress 
 
 
 
¶9. (U) Chinese Participants at Vice Chairman Hu Lunch and Meeting 
 
 
 
Hu Wei, Vice Chairman, Shanghai Municipal People's Congress 
 
Jin Mao, Member, Foreign Affairs Committee, National People's 
Congress 
 
Yao Mingbao, Secretary General, Standing Committee, Shanghai 
Municipal People's Congress 
 
Peng Fang, Director, Foreign Affairs Office, National People's 
Congress 
 
Wang Zhong, Vice Director, Budget Committee, Shanghai Municipal 
People's Congress 
 
Wu Jinlan, Deputy Director, Foreign Affairs Office, Shanghai 
Municipality 
 
Xu Yi, Deputy Director, Standing Committee Office, Shanghai 
Municipal People's Congress 
 
 
 
¶10. (U) CODEL staff cleared this cable. 
CAMP