MEDIA REACTION: U.S.-CHINA STRATEGIC AND ECONOMIC DIALOGUE

UNCLAS AIT TAIPEI 000910 SIPDIS DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/P, EAP/PD - NIDA EMMONS DEPARTMENT PASS AIT/WASHINGTON E.O. 12958: N/A TAGS: OPRC KMDR KPAO TW SUBJECT: MEDIA REACTION: U.S.-CHINA STRATEGIC AND ECONOMIC DIALOGUE Summary: Taiwan's major Chinese-language dailies focused news coverage July 30 on the Taiwan government's plan to sign an Economic Cooperation Framework Agreement with China and developments in cross-Strait relations; on former President Chen Shui-bian's legal cases; and on the U.S.-China Strategic and Economic Dialogue. In terms of editorials and commentaries, a column in the pro-independence "Liberty Times" discussed the U.S.-China Strategic and Economic Dialogue and called it a "war of saliva." The article said U.S. President Barack Obama's addressing China as a "partner" has certainly propped up China's international status, but, in the meantime, it has also roused concerns among the United States' traditional allies in Asia, such as Japan and Australia. An op-ed piece in the pro-unification "United Daily News," however, said the formal launch of the U.S.-China dialogue indicated that the United States and China will jointly lead the trends of the globe and share the decision-making authority on global political and economic issues. End summary. A) "U.S.-China Dialogue Is Reduced to War of Saliva" Washington correspondent Nadia Tsao wrote in the "Observation from Washington D.C." column in the pro-independence "Liberty Times" [circulation: 700,000] (7/30): "... As a matter of fact, Washington has already set the tone on its strategic guidelines regarding the United States' China policy since former Deputy Secretary of State Robert Zoellick defined China as a 'responsible stakeholder' [in 2005]. For this year's meeting, China wants 'strategy' while the United States wants 'economics.' Both sides got what they want, except that during the Bush administration, in addition to cooperation, Washington also attached great importance to 'taking refuge from danger.' Since [President Barack] Obama took over the helm, however, Washington has deliberately underplayed the 'differences' in U.S.-China relations by evading the important bilateral disputes for the easy issues, in an attempt to resolve the international economic crisis. "Yet even with the strategic dialogue, problems will not necessarily be resolved, nor does it indicate that Washington and Beijing will become strategic partners overnight. But by addressing China as a 'partner' and saying U.S.-China relations are the most important bilateral relationship [for the United States], which will shape the 21st century, this time Obama has certainly propped up China's international status, an issue that Beijing cares most. But in the meantime, it has caused concern among the [United States'] traditional allies in Asia, such as Japan and Australia, which are worried about the long term growth of China's strength in Asia and the decline of the United States' strength." B) "Policy Changes Deeply Concealed in U.S.-China Dialogue" Associate Professor Chen Hsin-chih from National Cheng Kung University Department of Political Science opined in the pro-unification "United Daily News" [circulation: 400,000] (7/30): "The formal launch of the U.S.-China Strategic and Economic Dialogue indicated that both China and the United States will jointly lead the trends of the globe and share the decision-making authority on global political and economic [issues]. ... First, the United States abandoned the strategy it had previously clung tightly to -- namely, counterbalancing the exchange rate for the Renminbi; [instead], it guaranteed the stable market value of U.S. treasury bonds, a move indicating that the two strong powers will work together to stabilize the status of the U.S. dollar. ... "Second, the economic growth patterns of the United States and China will have tremendous revisions. China's domestic market will serve as a locomotive for its economic growth, while the United States will gradually move toward a new direction of having its exports direct its economic growth. ... Such a huge change in the strategies of economic and trade development, in contrast to the vision of Beijing and Washington coordinating and working together on a green economy, will inevitably create a profound impact on the developments of future Doha Round WTO negotiations and post-Kyoto Protocol talks. "Finally, neither side has bothered to spend more time on disputes such as human rights and carbon taxes. Add the fact that long-stagnated U.S.-China military exchanges will resume soon, it showed that the two strong powers share strong ambitions to reduce mutual strategic misunderstanding. The United States will no longer adopt a tit-for-tat counterbalance strategy to deal with China's growth in strength. Whether such impressive economic and trade cooperation will bolster the two powers to move from mistrust to mutual cooperation in the military field will be a major milestone that will affect the development of international relations for this century. Further, it will create a profound, decisive impact on the development of cross-Strait relations. ..." WANG