Ambassador Jon M. Huntsman, Jr.
NCC Groundbreaking in Guangzhou
Press Conference
October 26, 2009

Ambassador Huntsman:  ____

I’m delighted to be here.  This is my first visit as U.S. Ambassador to South China, although I’ve been to Guangzhou many times over the years beginning almost 25, 28 years ago.  So like the rest of the world, I’ve watched Guangzhou and indeed all of South China blossom in a most remarkable way economically, along with the trade flows and people flows that have been part of that over the years.  It’s been very exciting to watch, and now to be able to participate in first-hand as U.S. Ambassador.

I’m delighted to be here with our Consul General who is newly arrived as well, and expert in the field and doing a very very good job.  Of course he’s entering the relationship when we have a new building to put in the ground over the next two to three years.  This will be a significant footprint for the United States government and it certainly is representative of our many interests in South China and the consular region that is represented by Brian and by his 300 professional staff people that include Guangdong and Guangxi and Fujian and Hainan and probably 220, 230 million people who are part of that geographic catchment area.

Too many Americans to count.  Many companies engaged in trade and commerce.  This being the most dynamic neighborhood in one of the most dynamic nations on earth makes this extremely important for the United States in its many interests.

So I’m delighted to be here.

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Let’s turn it over to you for anything you’d like to ask.

Question:  She’s asking why you chose this location for the consular here.

Ambassador Huntsman:  The location was decided upon many years ago, in fact the land was purchased in 2001.  So when you make plans well in advance it’s hard to know how the neighborhood surrounding the land that you purchased will then develop.   So although this might not be the so-called traditional consular neighborhood, surrounded by the arts and museums and financial institutions, it’s a very dynamic neighborhood and I think is very representative of the kind of relationship that we want to strike in South China.

Of course our exchanges at all levels, be they cultural, economic, political, will increase over time in proportion to the growth in our bilateral relationship which as we all believe is the most important bilateral relationship in the world today.  And if you say it’s the most important relationship you then must be willing to back it up with the kinds of exchanges that keep it strong.  That’s always done with real people who are able to enhance understanding on both sides of the Pacific.  I hope particularly among our young people, the younger generation coming up, that we will have more opportunities to learn Chinese, but also to travel here and to make friends and to see for themselves the growth and dynamism and the desire for shared peace and prosperity in the world that is on exhibit throughout all of China.

Question:  I have [inaudible].  The question is, is the new compound in Guangzhou the first project since the two countries signed the new agreement?

And my second question is, as some countries have decided to close their consulates during the global financial crisis, why is the U.S. investing so much in a new consulate in Guangzhou?

My third question is, people have to wait in long queues outside of consulate section.  Will the new compound result in changes to this [inaudible]?

Ambassador Huntsman:  With respect to the third question, and I’ll just take them in reverse order.  I’m going to let Brian address that directly.  But I will tell you that as we have moved into a new compound in Beijing as compared to our old compound, the efficiency and the waits that I know have been burdensome to many people seeking consular support has been dramatically improved since we’ve been in the new building.  And I have no doubt about a similar effect taking place here in the new consular building.

With respect to your second question, let me just say that this is representative of our most important bilateral relationship in the world.  The U.S.-China relationship is in growth mode.  We are expanding in all ways.  We are growing from simply the bilateral approach to problem solving to now a global approach to problem solving which is a significant new trend in our relationship.  And with it, and with all of our interests, many of which are shared today, we need the kind of consular support and diplomatic support that will carry us into the future.

I think this compound says more about our investment in the future of the U.S.-China relationship than any words could possibly convey.

Your first question I’ve since forgotten.

Question:  [Inaudible].

Ambassador Huntsman:  Is it the first compound since we started --

Question:  Is the new compound in Guangzhou --

Ambassador Huntsman:  The facilities agreement?

Question:  Yeah.  The first project since the --

Ambassador Huntsman:  We’ve had different agreements.  In fact I might ask our expert to maybe comment on it from our Office of Building Operations.

Ms. Muniz:  Yes it is, in fact.  Beijing was under the first agreement and Guangzhou will be under the second agreement.  We refer to the first as COCA, the Conditions of Construction Agreement.  This one also COCA-2.  So this is the first under the second agreement.

Ambassador Huntsman:  Thank you.

Ambassador Huntsman:  Brian, is there anything you want to say about the consular aspects of the new building that might improve and facilitate things?

Consul General Goldbeck:  Yes, thank you Ambassador,

The new building will have additional interview windows.  It will also have additional seating capacity inside the building.  There will be improved access facilities on the exterior part of the building.  Also we have an appointment system which is designed to arrange the proper flow of interviewees as they come to the windows.

So I think the basic answer is all of those things together will reduce the amount of wait time that interviewees will have and improve the conditions that they wait under.  Thank you.

Question:  I have two questions.  The first one is that President Obama is going to visit China in three weeks, and he is a great speaker.  His previous speech in Cairo also to the Muslim world has been very important and impressive.  And I believe you are going to help him to prepare his speech in China.  And what do you think is going to impress, I mean in what way he is going to impress the Chinese people?

The second question is that Mr. Huntsman, you are a rising star in the GOP.  And many people believe that you will run for President in the 2012 campaign.  Who is going to take the credit for your job in China?  You or the man who appointed you, President Obama?

Ambassador Huntsman:  Thank you for that treacherous last question.  [Laughter].  Which I’m not even going to touch because I don’t do politics in this job.  I serve my country first and foremost.

With respect to the first question, President Obama will have a very good sense of what he wants to say to the Chinese people.  He’s given this relationship a great deal of thought and consideration.  That was quite apparent in my first meeting with him when he laid out his vision for the U.S.-China relationship.  I think he also realizes full well and will likely want to convey the sentiment that with both countries on the world stage, that now more than ever before we have a need to begin solving some of the international problems and challenges that heretofore this relationship was not in a position to handle.  The global economy, climate change.  Because we are the two largest emitters of harmful greenhouse gases.  Clean energy, which both countries have a very unique opportunity to lead out on in terms of our nascent and emerging technologies on both sides.  Also as it relates to problem solving around regional security issues.  When he talks about a world without nuclear weapons, you know who else made that statement and in China?  Ronald Reagan called for that very same thing at Fudan University in 1984.  A world without nuclear weapons.  Here we are talking about it again, which is something we can all hope for.  I suspect that he’s going to want to take that issue up in his discussions as well, because as two leaders in the world there’s something that we both can do about it.
    
So I’m guessing the discussions will be positive, they’ll be frank, and they will be completely in line with the reality of our relationship today which has taken on a global dimension which is quite substantial.

Question:  I have a question also about President Obama.  We heard that one of his brothers is living in Guangzhou Province so we want to know whether Obama will come to Guangzhou to pay a visit to his brother and also see the economic development of Guangzhou Province.  Thank you.

Ambassador Huntsman:  Thank you for the question.  It is a family matter, of course, and the Ambassador will not get into family matters.  Suffice it to say that I have met and know the family member here in Guangzhou who is a very talented pianist, I might add, and writer.  And it was a great joy to be able to get to know him.

Question:  Mr. Huntsman, I have two questions.  The first one is, last June you started approving travel visas for Chinese visitors and then the global financial crisis happened.  So if that has helped U.S. economy to recover, and are there any new plans on the table for your government to maybe try more Chinese visitors and maybe spend more money there?

The second one, as you know China’s entire exports dropped sharply ever since the U.S. government considered safeguard duties on tires from China.  So what do you think about protectionism?  Thank you.

Ambassador Huntsman:  In reverse order, let me tell you that protectionism is not something that the United States stands for or promotes.  We have been the most open market country in recent world history, and we have promoted it wherever we gave gone.  Administration after administration, regardless of political persuasion.  I think it’s important to note the comments made about the tires case because people see it in only a negative context.  We must remember that this is an outgrowth of tools that the United States negotiated upon China’s entry into the World Trade Organization.  I was a trade negotiator at the time, so I know something about the provision of the Trade Act that was used to finalize the negotiation which basically gave the United States some tools to use in the event of surges.

So was it a legitimate and legal trade tool under trading rules?  Absolutely.

Now let me speak more broadly about the trading relationship.  When you trade a lot of goods, and right now we have $400 billion in bilateral trade.  When my predecessor George Bush was Ambassador maybe 30 years ago, we had about $500 million in trade.   $500 million.  Today it’s $400 billion.

When you have a high volume of trade you’re going to encounter challenges that you must problem solve around.  One of our closest partners in the international community and our largest trading partner is Canada.  I remember not long ago one of the most difficult and painful trade negotiations was over softwood lumber between the United States and Canada.  It was long and it was difficult and it was very acrimonious.  That doesn’t mean that we can’t maintain a good relationship, a partnership, and a friendship, but it means from time to time when you have a high level of trade, that you’re going to have challenges and you're going to have to resolve them.

Any trading relationship at this level, $400 billion, will not be challenge or problem free.

Secondly I would point to our relationship with the European Union which has always been very strong and traditionally a relationship of longstanding allies.  We had a very difficult trade case called the AirBus subsidy case, which was very difficult and very painful for everyone, but we got through it, we problem solved based on legitimate WTO sanctioned rules of the road and we got through it and maintained a very strong relationship on display today.

So I think the U.S.-China relationship will do just fine.  We must remember that as we continue to grow faster than any other trading relationship in the world, we will have challenges.  That is only a natural outgrowth of the level of activity between both countries, but it also means that as we encounter challenges that we’re going to have to do it with respect and with a sense of shared interest and with a sense of equality at the negotiating table.  That will be very very important as we go forward.

Question:  Tomorrow I think a seminar, the ____ Delta.  And what is your impression about innovation of Chinese companies here in Guangzhou?  Also we’re going through a period of adjustment in up-scaling companies.  What are your [inaudible]?

Ambassador Huntsman:  Thank you for the question.  I will tell you that as Guangdong and the surrounding region transitions to a higher level of technological development which I know is part of the overall game plan, there will be certain important standards that are looked to by way of international investors, particularly those from the United States.  They mostly have to do with intellectual property protection.  I learned as Governor that the most important thing any economy can have is a generation of strong and able innovators and creators and entrepreneurs who come up with new ideas that fuel industries.

As I’ve traveled throughout China in my short two and a half months I’ve discovered a lot in the way of innovation and creativity and local entrepreneurship that is giving rise to the creation of new technologies.  At this critical point in economic history, strong enforcement of intellectual property will be more important than ever before because if it falls below certain established standards, you will lose investment.  You will have good entrepreneurs and creators of technology who will flee to safer markets in order to make their products become a reality.

So increasingly as we look to the future, I think it’s going to be very important for the United States to move even more aggressively toward strong intellectual property, respect for patents and trademarks, copyrights, and maybe even doing so with local collaborators, municipal leaders, provincial leaders, governors and mayors.  Knowing full well that China is made up of so many different markets, and each market is moving so quickly in terms of positioning itself for the future.  In South China I think that the commitment to intellectual property and what the United States can do in terms of helping to promote greater awareness and recognition of those standards might be one of the most important things we could do economically together.

Question:  I’d like to ask [inaudible] and also what your personal views are [inaudible] [President Obama] and his visit to China, what his agenda might be, what issues he’s going to discuss, and what kind of results you might expect from his visit.

Also you’ve had the ceremony here at the consulate as well as Secretary Poneman’s visit.  I was just reading a good environment [inaudible].

Ambassador Huntsman:  I will just tell you categorically that the U.S.-China relationship is as good today as it’s ever been in recent history.  So when President Obama arrives in three weeks, he will find that on the ground what he had hoped for, that of a positive relationship, that of a relationship that’s collaborative and comprehensive, is truly in effect, although not completed.  We’ve got much work ahead, obviously, but the contours of that relationship certainly are evident.

Secretary Locke will be arriving tomorrow, or tonight, and he will be participating -- Together we’ll jointly participate along with many local businesses and the Chamber of Commerce in the Intellectual Property Conference that will begin to discuss the issues that I touched upon earlier, the importance of strong respect for foreign innovation and indigenous innovation, and the intellectual property that goes along with that.

Of course there will be a lot of visits with local government and provincial government officials as well that the two of us will make.

That will be followed by the JCCT which has long been in existence as a commercial and trade promotion forum between the U.S. and China.  Twenty years, I think, is what we’re celebrating this year.  And for that Secretary Locke will be present along with our Agriculture Secretary Vilsack and our U.S. Trade Representative, Ambassador Kirk.

That will take place in Hangzhou and Vice Premier ___ will be part of that along with Commerce Minister Chung.  And we have a range of issues over two days that we will be covering that pertain to agriculture and trade in goods and roughly 17 working groups that are part of the JCCT that cover the range of trading issues that we have between our two countries.  This will be the first opportunity under the new administration for the JCCT to meet, so I think there will be a lot of relationship building along with setting goals as we move forward on the trade issues that are most important for both countries.

 

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