MEDIA REACTION: FINANCIAL CRISIS, U.S. DIPLOMACY

UNCLAS BEIJING 004290 DEPARTMENT FOR INR/R/MR, EAP/CM, EAP/PA, EAP/PD, C HQ PACOM FOR PUBLIC DIPLOMACY ADVISOR (J007) SIPDIS E.O. 12958: N/A TAGS: OPRC KMDR CH SUBJECT: MEDIA REACTION: FINANCIAL CRISIS, U.S. DIPLOMACY -------------- Editorial Quotes -------------- ¶1. FINANCIAL CRISIS "China prepares for the world's economic winter" The official Communist Party international news publication Global Times (Huanqiu Shibao)(11/21): "Recently, the Chinese Ministry of Human Resources and Social Security denied the rumor of massive lay-offs and migrant workers returning to their homes in order to strengthen the world's confidence in the Chinese economy. Under the current financial crisis, Chinese experts have disagreed with the pessimistic comments concerning the stability of Chinese society. These experts indicate that Chinese society is at its most powerful and rational time in history. However, as the financial crisis intensifies, China's economy and the people's endurance are going to face challenges. Chinese experts indicate that financial crisis is also an opportunity for China. The government should implement necessary reforms when the economy declines. It should further promote domestic consumption and privatization. The crisis has also provided China a chance to rearrange foreign reserves, American debts, unpromising shares and assets. Some other experts have also expressed their confidence in China's economy." ¶2. US DIPLOMACY a. "Obama leads the U.S. in a strategic pull-back, no more expansion" The official Communist Party international news publication Global Times (Huanqiu Shibao)(11/21): "The world Obama faces now is quite different from the world that Bush Jr. faced eight years ago. It is very likely that the Obama administration will be forced to conduct a strategic pull-back. The U.S. is entering the new period of strategic adjustment. First, the return to multilateralism; second, withdrawal from Iraq; third, improving the relationship with Iran and North Korea; fourth, reconsidering the deployment of missile defense systems in central Europe; Fifth, avoiding promoting the eastward expansion of NATO; and sixth, rebuilding the relationship with Russia." b. "'China hands' rise up in the U.S. POLITICAL field" The official Communist Party international news publication Global Times (Huanqiu Shibao)(11/21): "In the East Asia affairs team in the US government, there is often competition between the group that knows China and the group that knows Japan. In the later part of the Bush administrating, more officials that know China well were used, like Thomas Christensen was appointed as deputy assistant secretary. He is treated as the symbol of the rise of the 'China Hands'. In the last two years, their voices have been increasing. People in the group are the ones who speak Chinese well, always coming and going between the US and China and have good personal RELATIONS in China. Besides, most of the officials that know China well are senior Democratic officials. The rising of these officials does not necessarily mean that the Obama administration is pro-China. It only represents the future possibilities of the U.S. misjudging China has greatly decreased. They are still interests-motivated. In this aspect, China is also in need of a group that knows the U.S." RANDT