MEDIA REACTION: G-20

UNCLAS AIT TAIPEI 000386 SIPDIS DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/PA, EAP/PD - NIDA EMMONS DEPARTMENT PASS AIT/WASHINGTON E.O. 12958: N/A TAGS: OPRC KMDR KPAO TW SUBJECT: MEDIA REACTION: G-20 Summary: Taiwan's major Chinese-language dailies focused April 2 news coverage on the meeting between U.S. President Barack Obama and his Chinese counterpart Hu Jintao at the G-20 meeting in London Wednesday; on the ongoing investigations into former President Chen Shui-bian and his family's legal cases; and on the year-end mayor and magistrate elections. In terms of editorials and commentaries, a column in the pro-unification "United Daily News" discussed the possible international political landscape that will unfold in the wake of the G-20 meeting. The article said Obama will have a tough trip to Europe this time, as the U.S. leadership position is declining. An op-ed piece in the centrist, KMT-leaning "China Times" also discussed the G-20 meeting and the position of U.S. currency in the world. The article said if China decides to dump its U.S. currency reserves to safeguard its national interests, it will surely shake the foundation of U.S. dollar as the global reserve currency. End summary. A) "The International Political Landscape Unfolded after the G-20 [Summit]" Professor Liu Bi-rong of Soochow University's Department of Political Science wrote in his column in the pro-unification "United Daily News" [circulation: 400,000] (4/2): "... To observe the G-20 summit, one not only has to look at the impact it generates on international economics but should also pay attention to the repercussions it creates on the international political landscape in the wake of the summit -- namely, a brand new set-up will unfold in the following directions: "The first direction is the decline of the United States' leadership status. Despite [U.S. President Barack] Obama's repeated emphasis on the importance of solidarity among the G-20 nations and his constant accentuation, starting from his inaugural speech, that the United States is capable of, and interested in, leading the world, reactions from other countries remain indifferent. Both the U.S. style of capitalism and Obama's economic stimulus plan have met with doubts everywhere in the world. As a result, unity among the G-20 nations may be probable, but it surely will not happen under the sole leadership of the United States. "In addition to the G-20 meeting, Obama will also participate in the NATO summit and a summit between the European Union and the United States, in the hope of rebuilding the United States' leadership in the international community. But it is generally believed that such a prospect will be difficult to fulfill. The European nations question the U.S. role in creating the [global] financial crisis and ask what right Washington has to tell them what to do. Not only that, but Obama will also feel pressure over his plans to hold individual meetings with the leaders of China and Russia during the G-20 meetings, because both countries desire to corrode the U.S. leadership position. Thus, Obama will have a tough trip this time. When U.S. foreign policy objectives are no longer the common objectives shared by all, the United States' relations with the world will have to be adjusted. ..." B) "Does the U.S. Currency Retain a Stable Position in the World?" Assistant Professor Liao Shunyo at Tunghai University's Department of Political Science opined in the centrist, KMT-leaning "China Times" [circulation: 150,000] (4/2): "The topic of a global reserve currency will certainly be a focus of discussion on the G-20 agenda currently being held in London. ... Generally speaking, China still adopts a relatively low-profile attitude toward the United States. In the foreseeable future, when China's GDP has yet to reach two-thirds or three-quarters of that of the United States, it is unlikely that Beijing will openly challenge the United States in terms of global politics or economics. But given [China's recent questioning of] the position of the U.S. currency, China has made it very clear that U.S. practices have affected China's interests. Should a similar situation occur again, China will definitely take actions (such as dumping its holdings of U.S. currency) to safeguard its national interest. When that happens, it will definitely shake the foundation of the U.S. currency as the global reserve currency." YOUNG