MEDIA REACTION: U.S.-CHINA RELATIONS, FINANCIAL CRISIS

UNCLAS BEIJING 004478 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: U.S.-CHINA RELATIONS, FINANCIAL CRISIS -------------- Editorial Quotes -------------- ¶1. U.S.-CHINA RELATIONS "Obama can gain much from friendly China ties" The official English-language newspaper China Daily (12/09): "In the past, it was common for a new U.S. president to go for a confrontation with China early in his tenure and then pursue reconciliation and cooperation as time went by. To create favorable domestic opinion, some newly elected U.S. leaders have signaled out China for verbal attacks. It was labeled as Washington's strategic competitor or as a threat....However, in the current situation, there is no reason for Obama's new administration to take a confrontationist attitude towards China...In laying out its foreign policy towards China, Obama's administration should not ignore that the two countries are enjoying an ever-deepening interdependence." ¶2. FINANCIAL CRISIS a. "Not just one percent" The official Communist Party People's Daily (Renmin Ribao)(12/09): "Premiere Wen Jiabao indicated earlier that, due to the economic difficulties, confidence is more valuable than gold and currency. When it is dealing with the international financial crisis, China has been issuing a firm and clear voice to the World. Not long before the Chinese government issued a 4 trillion y. economic stimulus plan, the Wall Street Journal doubted the effect of China's plan because only one percent will be used on social services. The primary thing for saving the economy during the crisis is resuming confidence. Therefore infrastructure investments, which can make big effects in a short time, are necessary in the stimulus plan. Different from Western countries' rescue plans, which are pointed at banks and financial institutes, China's plan is concerned more about the ordinary people's benefit. During the financial crisis, the Chinese government took actions to deal with the financial crisis, which have been more effective than the actions taken by the developed countries. China's plan has played an active role in increasing the confidence of the market." b. "To use China's money as deploying soldiers" The official Communist Party international news publication Global Times (Huanqiu Shibao)(12/09): "Recently, the American financial crisis has aroused two questions in China. First, should China save the U.S.? Second, China has decided to urgently invest 4 trillion y. within the next two years. Strategic consideration is required to allocate this amount of national fortune, where should the Chinese invest this money? A large amount of foreign exchanges should primarily serve China's modernization construction, secondly improve the people's benefit guarantee and thirdly, protect the national industries. How to use foreign exchanges is a national strategic issue. Take the U.S. as an example, the U.S. uses a warlike decision-making system to decide the 700 billion dollar's rescue plan. Isn't China supposed to decide whether or not to buy American debts through National People's conference or political consultative conference? China should not only use modern war theory on military, but also emphasize strategic economic theory on the economy." c. "The U.S. will definitely fall if it can't grasp its resources" The official Communist Party international news publication Global Times (Huanqiu Shibao)(12/09): "The current U.S. financial crisis is mainly a crisis of resources. Looking at the control of global resources, the U.S. decline is all around. This will definitely lead to a major change in the set up of the world. First of all, the U.S. is depending on military power to control the world's resources. The withdrawal of troops from Iraq may lead the U.S. far from the world's oil center and thus lose control of the invisible rule; that oil purchases are settled with U.S. dollars. Meanwhile, the U.S. is losing an advantageous position in political resources. Thirdly, the U.S. strategic national resources have been seriously dropping. ...The U.S. has been away from the real economy for a long time. Once the confidence in investments is lost, the decline in the U.S. will be inevitable. However, people should not exaggerate the degree of the U.S. decline. A complete collapse of the U.S. economy is impossible." PICCUTA