VZCZCXYZ0022
OO RUEHWEB
DE RUEHSO #0290 1021113
ZNR UUUUU ZZH
O 121113Z APR 07
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6725
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 7848
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 7965
RUCPDOC/USDOC WASHDC 2762
UNCLAS SAO PAULO 000290
SIPDIS
SIPDIS
STATE INR/R/MR; IIP/R/MR; WHA/PD
DEPT PASS USTR
USDOC 4322/MAC/OLAC/JAFEE
E.O. 12958: N/A
TAGS: KMDR OPRC OIIP ETRD BR
SUBJECT: MEDIA REACTION: GLOBAL ECONOMY: US ACTION AGAINST CHINA AT
THE WTO; SAO PAULO
"Chinese Demand"
Center-right national circulation daily O Estado de S. Paulo (4/12)
editorialized: "Brazil should root for a US victory in the action
the USG filed against subsidies given to the Chinese industrial
sector.... It is a matter of contesting, based on international
rules, subsidies given by the Chinese government both to industrial
goods production and exports. If it participates in the action as a
third interested party, Brazil will benefit as a much as the US from
the probable condemnation of such Chinese practices.... There is a
strong reaction in all Western markets against the invasion of
manufactured products coming from China. Chinese industrial
competitiveness results not only from cheap manpower, but also from
China's undervalued currency and an enormous variety of fiscal
incentives.... China currently faces several actions at the WTO and
they continue to increase.... Washington has just initiated two
additional complaints against China. In one of them, the Chinese
government has been accused of lacking IPR enforcement. Products
illegally copied in China have been sold throughout the world.
Brazil is one of the countries most affected by such trade.
Seventy-five percent of pirated products sold in Brazil come from
Asia, mainly from China. The other complaint interests particularly
the US and probably the European Union. It is about Chinese barriers
against imported films, discs, books and software. In view of so
many accusations of unfair trade practices and leniency towards
piracy, Chinese officials are looking for allies among emerging
nations. Brazilian officials finally should have realized, although
with a significant delay, the enormous mistake they made when they
recognized China as a market economy."
McMullen