VZCZCXYZ0011
PP RUEHWEB

DE RUEHTU #0152/01 0561554
ZNY CCCCC ZZH
P 251554Z FEB 10
FM AMEMBASSY TUNIS
TO RUEHC/SECSTATE WASHDC PRIORITY 7354
INFO RUCNMGH/MAGHREB COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 0079
RUEHIN/AIT TAIPEI 0013

C O N F I D E N T I A L TUNIS 000152 
 
SIPDIS 
 
FOR AF/RSA, EAP/CM, NEA/RA, AND NEA/MAG 
 
E.O. 12958: DECL: 02/23/2020 
TAGS: PREL PGOV EAID ETRD MASS TS CN
SUBJECT: TUNISIA-CHINA RELATIONS MODEST, BUT TRADE TIES 
GROWING 
 
REF: A. STATE 10152 
     ¶B. 09 TUNIS 498 (NOTAL) 
 
Classified by Ambassador Gordon Gray for reasons 1.4 (b) and 
(d). 
 
------- 
Summary 
------- 
 
¶1.  (C) Chinese engagement in Tunisia is broad but not deep. 
Chinese assistance to Tunisia includes infrastructure 
projects and some training grants.  The commercial 
relationship is growing but is not yet large.  The last high 
level meeting we know of took place in November, 2009 when 
Zhai Jun, China's Secretary of State for Foreign Affairs, met 
with then Minister of Foreign Affairs Abdallah in Tunis.  In 
June, 2009 Foreign Minister Abdallah visited Beijing and met 
with his Chinese counterpart (ref b).  China has provided 
foreign assistance to build dams and technical assistance and 
training for Tunisian officials.  While specific data is not 
available, assistance levels appear to be modest.  Bilateral 
trade was approximately $890 million in 2008, of which $836 
million was Tunisia's imports from China.  Tunisia's imports 
began increasing sharply after 1999 while its exports to 
China have increased more gradually.  We are not aware of any 
Chinese military assistance other than some language training 
for officers.  While we are open to suggestions for 
U.S.-Chinese collaboration in Tunisia, we do not see any 
obvious opportunities.  End summary. 
 
------------------- 
High-Level Meetings 
------------------- 
 
¶2.  (SBU) The last high-level meeting we are aware of between 
China and Tunisia occurred November 26, 2009.  Zhai Jun, 
China's Secretary of State for Foreign Affairs, met in Tunis 
with then Minister of Foreign Affairs Abdallah.  According to 
media accounts, Foreign Minister Abdallah focused on the 
private sector's role in the relationship, saying it could 
"bolster cooperation in different sectors through partnership 
projects."  Media reports also state the two countries have 
signed 23 agreements in economic, technical, diplomatic, 
scientific, and financial sectors.  They signed their first 
trade agreement in 1995.  In June, 2009, Minister of Foreign 
Affairs Abdallah visited Beijing and met with his Chinese 
counterpart.  During his visit they signed an economic and 
technical cooperation pact.  In March, 2008 a senior member 
of the Chinese Communist Party's Political Bureau, Li 
Chanqchun, met with Hedi M'henni, then Secretary General of 
the ruling RCD party.  During the meeting they witnessed the 
signing of a cooperation agreement between the two countries. 
 A Tunisia-China Friendship Association is currently headed 
by prominent businessman Walid Loukil. 
 
¶3.  (C) The Chinese Ambassador in Tunis told us last year 
that China-Tunisia bilateral relations had suffered in recent 
years from limited access to GOT officials imposed by the 
Ministry of Foreign Affairs, a common complaint among foreign 
diplomats in Tunis. 
 
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Trade 
----- 
 
¶4.  (SBU) There are signs that the two countries are trying 
to expand their bilateral commercial relations.  The two 
sides are reportedly discussing a free trade agreement.  In 
2008, Tunisia participated for the first time in a tourism 
industry trade fair in Guangzhou.  We also heard in 2008 that 
China was considering opening an office of the shipping 
company Cosco, but have not seen any evidence of 
implementation.  In November 2009, Secretary of State for 
International Cooperation and Foreign Investment Abdelhamid 
Triki represented Tunisia at the fourth Chinese-African 
Cooperation Forum in Sharm El-Sheikh. 
 
¶5.  (SBU) China-Tunisia bilateral trade is growing 
significantly; the total value in 2008 was approximately 
$889.6 million -- up from approximately $103 million in 1999. 
 Tunisia's  exports to China saw a more gradual increase, 
from approximately $26 million in 1999 to $53.6 in 2008. 
Tunisian exports include phosphates, oranges, and melons, 
while China exports a wide range of consumer goods, as well 
as tea, sugar, and other foodstuffs to Tunisia.  Tunisia is 
apt to see China as a competitor for its exports of consumer 
goods, including textiles.  A 2008 World Bank report, 
 
"Strengthening MENA's Trade and Investment Links with China 
and India," reported that Tunisia may be one of the MENA 
countries that has seen its exports decline in the face of 
Chinese competition.  However, Tunisia may also be benefiting 
from greater integration of the global market, driven in part 
by China, for electrical and motor vehicle parts. 
 
------------------- 
Military Assistance 
------------------- 
 
¶6.  (C)  As reported in the press, Cao Gangchuan, vice 
president of China's Central Military Commission, headed a 
delegation of Chinese officials to Tunisia in 2007 and met 
with then Tunisian Minister of Defense Kamel Morjane.  The 
Ministry of Defense has courses in Madarin for its officers 
and China has provided grants for about 10 officers per year 
to study in China.  We have not seen any signs of Chinese 
military equipment being used in Tunisia. 
 
------------------ 
Foreign Assistance 
------------------ 
 
¶7.  (SBU) China has provided some development assistance to 
Tunisia over the years, usually for infrastructure projects. 
The two countries concluded a bilateral agreement at the 
China-Africa Cooperation Forum in Beijing in 2006 and the 
Chinese provided funds for two dam projects in Tataouine that 
same year.  In 2008, China started sending volunteers to 
Tunisia who work in the cultural sector, teaching Chinese, 
table tennis, martial arts, and dancing - often in remote 
areas of Tunisia.  In December 2009, the media reported a 
Chinese gift to the GOT of 6,200 computers.  At least 300 
Tunisian civil servants have been invited to China for 
training programs that cover agriculture, energy, trade, 
construction and public health.  China has a longstanding 
program, started by a Chinese Ambassador in the 1970s, to 
send medical doctors to southern areas of Tunisia to help 
underserved communities. 
 
¶8. (SBU) In February 2009 the Tunisian Minister of Health met 
with the Chinese Vice-Minister of Health.  The two officials 
discussed the opportunities for cooperation in the medical 
field and the Vice-Minister indicated his country's interest 
in participating in a new university hospital project in 
Sfax.  In September, 2009, work began on a 300 bed university 
hospital in Sfax, estimated to cost $32.6 million. 
 
--------------------------------------------- ----------- 
No Obvious Opportunities for U.S.-Chinese Collaboration Here 
--------------------------------------------- ----------- 
 
¶9.  (C) There are no examples of U.S.-China collaboration in 
Tunisia, either private or public.  While we are open to 
ideas for collaboration, we do not see any obvious 
opportunities. 
 
GRAY