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### Viewing cable 06BEIJING19032, CHINA-EU SUMMIT: HEAVY ON DIALOGUE, LIGHT ON

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06BEIJING19032 | 2006-09-08 10:35 | 2011-04-24 00:00 | CONFIDENTIAL | Embassy Beijing

`

    VZCZCXRO4875
    OO RUEHAG RUEHCN RUEHGH RUEHVC
    DE RUEHBJ #9032/01 2511035
    ZNY CCCCC ZZH
    O 081035Z SEP 06
    FM AMEMBASSY BEIJING
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 6452
    INFO RUEHOO/CHINA POSTS COLLECTIVE
    RUCNMEU/EU INTEREST COLLECTIVE
    RUCNMEM/EU MEMBER STATES COLLECTIVE
    RUEHTA/AMEMBASSY DUSHANBE
    RUEHUL/AMEMBASSY SEOUL 9510
    RUEHKO/AMEMBASSY TOKYO 0849

` `

    C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 019032

    SIPDIS

    SIPDIS

    E.O. 12958: DECL: 09/07/2016
    TAGS: EU FI PREL CH
    SUBJECT: CHINA-EU SUMMIT: HEAVY ON DIALOGUE, LIGHT ON
    DELIVERABLES

    REF: A. BRUSSELS 2815

         ¶B. HELSINKI 870

    Classified By: Deputy Political Section Chief Robert Griffiths, Reasons
     1.4 (b/d).

    Summary
    -------

    ¶1. (C) Neither the Chinese nor EU member states expect much
    in the way of deliverables from the Ninth Annual EU-China
    Summit in Helsinki, September 9-12.  Wen Jiabao will
    represent China at the Summit, hosted by current EU President
    Finland, with the stated purpose of increasing dialogue and
    strengthening ties between the EU and China.  Wen will
    deliver the keynote address at the EU-China Business Summit
    on September 11.  The sixth annual Asia Europe Meeting (ASEM)
    focusing on trade and business development will be held
    concurrently, from September 10-11.  After the Summit, Wen
    will travel to Germany and the UK, September 13-15, ending
    his trip in Tajikistan for the Shanghai Cooperation
    Organization (SCO) meeting.  Contacts at the EU Mission and
    the Finnish, German and U.K. Embassies in Beijing said they
    did not expect the EU Arms Embargo to be an issue.  Beijing
    will likely raise the issue of lifting the Embargo, but as
    there is no consensus within the EU on the topic, no movement
    is contemplated.  Wen will also likely press for the EU to
    grant Market Economy status to China, but no one, not even
    the Chinese, expect movement on that issue either, according
    to Embassy Beijing contacts. End Summary.

    The Agenda
    ----------

    ¶2. (C) The Chinese delegation, led by Wen Jiabao, and
    including Foreign Minister Li Zhaoxing, Minister of the
    National Development and Reform Commission Ma Ka and Commerce
    Minister Bo Xilai, will attend the EU-China Political Summit
    September 9, the EU-China Business Summit September 11-12 and
    ASEM meetings September 10-11.  The EU-China Political Summit
    will be hosted by the Prime Minister of Finland Matti
    Vanhanen and President of the European Commission, Jose
    Manuel Barroso. Concurrently, Helsinki will host the
    EU-Republic of Korea Summit which ROK President Roh Moo-hyun
    will attend.  The ASEM Summit will begin on September 10,
    bringing together European and Asian Heads of States from
    member states of the European Union, the ten ASEAN countries,
    China, Japan and the Republic of Korea.  On September 11, Wen
    will deliver the Keynote Address at the EU-China Business
    Summit.  The Chairman of the China Council for the Promotion
    of International Trade (CCPIT), Wan Jifei, and the Chairman
    of Vimicro Corporation, Dr. Deng Zhonghan, will also attend
    and speak at the EU-China Business summit on September 11. Bo
    Xilai will also speak at this event.  Wen will depart
    Helsinki on September 12 and travel to London and Berlin for
    bi-lateral meetings, ending his trip in Dushanbe for the SCO
    meeting.

    ASEM
    ----

    ¶3. (C) This year's ASEM meeting will be the largest ever,
    comprising 39 heads of state, according to the DCM of the
    Finnish Embassy in Beijing.  The Korean and Indonesian
    Presidents will attend, as well as Prime Minister Koizumi of
    Japan.  There will be no meetings between Koizumi and Premier
    Wen, according to all sources consulted.  Given the Yasakuni
    Shrine issue and the fact that Koizumi is "on his way out"
    Beijing does not see a meeting with Japan as worthwhile at
    this point, according to Wu Baiyi of the China Foundation for
    International and Strategic Studies. Wen will meet likly
    meet with ROK President Roh, accordng to the Fins.  Helsinki
    invited Burma to attend the ASEM meetings, subjecting the EU
    to some criticism from human rights organizations including
    Human Rights Watch.

    No Movement Expected on Arms Embargo
    ------------------------------------

    ¶4. (C)  Beijing may be waiting for a more opportune moment to
    push the EU to lift the arms embargo, speculated Wu.  Noting
    that Finland is not a big country and that this year's summit
    is more about creating good will and enhancing trade and
    business cooperation than advancing political agendas, Wu
    said he was fairly confident that Beijing would raise the
    issues of the arms embargo and of China's market economy

    BEIJING 00019032  002 OF 002

    status, but would not push too hard.  His sentiments were
    echoed by a contact at the UK Embassy who noted that Finland
    does not have the clout to actively engage with China on a
    wide range of issues.  Despite recent statements in the press
    from high level Chinese officials calling on the EU to scrap
    the arms ban, notably the September 7 press briefing by Li
    Ruiyu, deputy head of the MFA European department, all of
    Embassy Beijing's contacts, both European and Chinese, have
    said they expect no movement on either issue.

    GALILEO Also Stalled
    --------------------

    ¶5. (C) There will likewise be little progress made on the
    Galileo satellite program cooperation with China, according
    to a contact from the EU Mission in Beijing.  Progress is
    stalled by a variety of technical and political issues and
    none will be resolved either at or before the Summit.  The
    Finnish DCM in Beijing echoed these sentiments.

    Discussion But No Deliverables
    ------------------------------

    ¶6. (C) The Political Summit will cover a wide variety of
    issues, with a focus on dialogue and enhancing understanding
    and cooperation, according the Fins.  The Fins, Brits,
    Germans and EU representative all said the same thing: the
    focus of the Summit is dialogue, not deliverables, although
    several trade deals will be signed during the visit.  The
    Summit agenda includes trade policy, environmental issues,
    key regional and international issues, energy security, human
    rights and China's market economy status.  When asked if the
    German EU Presidency might present the right opportunity for
    renewed pressure from Beijing to lift the arms embargo, Wu
    would not speculate.  One contact at the UK Embassy in
    Beijing similarly noted that as Finland is a small country,
    EU engagement with China at this summit cannot be expected to
    be as deep as when countries like Germany fill the
    presidency.
    RANDT

`