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

UNCLAS BEIJING 000010 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, U.S. MILITARY, ISRAEL -------------- Editorial Quotes -------------- ¶1. U.S.-CHINA RELATIONS "To cautiously evaluate the future of U.S.-China relations" The official Communist Party international news publication Global Times (Huanqiu Shibao)(01/04): "Regarding certain historical lessons after the 10th and 20th Anniversaries, this year the government and the scholars in both countries have become cautious when evaluating the future of the U.S.-China relationship. The two countries should not look at their bilateral relations in the short-term. Both countries' scholars indicate that none of the historical issues have been solved. At the same time, in several new fields, there are new issues arising, such as climate change and Tibet. Most scholars have a concerned and practical attitude when reporting on the relationship. After Obama takes office, it would be helpful if the transition is peaceful and further develops U.S.-China relations. Our generation is not wiser than our predecessors, but we have learned their lessons and we believe we can do better." ¶2. FINANCIAL CRISIS "U.S. and Europe contemplate the flaws in their market rescue policies" The official Communist Party international news publication Global Times (Huanqiu Shibao)(01/05): "In 2009, people will begin to worry over the negative effect of the market rescue measures taken by many countries. European and American decision makers, lacking new ideas, are facing new challenges such as the deficit, inflation, and stimulus packages. Experts believe that the U.S. cannot completely rely on foreign investors. The only way that the U.S. can help itself is by producing more money. Inflation is inevitable. ...To stimulate economy, the government has to conduct a loose currency policy. Deficit and inflation are inevitable. However, a policy that is loose is the only way to deal with an economic recession. In 2009, the commodities market will likely experience some big ups-and-downs. In order to step-away from the financial crisis, many decision makers need to be more creative with their solutions." ¶3. U.S. MILITARY "The U.S. army issues a report suggesting that it should 'domestically deploy troops' which arouses conflict" Elite Reference (Qingnian Cankao),a newspaper affiliated to the official Communist Youth League China Youth Daily (01/05): "Along with the spread of the global financial crisis, inside the U.S. concerns about the large-scale chaos caused by a financial recession is increasing day after day. The U.S. army recently issued a report which indicates that the U.S. military is prepared to interfere in domestic issues, should they be needed. This suggestion is not the traditional American way of thinking and so it has aroused many conflicts. The U.S. media guessed that the report has gained much support within the military and was issued in order to test public opinion. No matter what the excuse is, sending regular troops in the country to conduct combat activities is a challenge to the U.S. constitution and political system. The social and legal problems this would produce are hard to predict." ¶4. ISRAEL "Why does Israel conduct a heavy strike at Gaza?" The official intellectual publication Guangming Daily (Guangming Ribao)(01/05): "Analysts indicate that Israel has three goals in launching its war against Gaza: first, after a yearlong ineffective blockage, Israel must use its armed forces to remove Hamas, the biggest obstacle to peace talks. Second, Israel intends to destroy the military strength and the weapons that Hamas uses to fight against Israel. And third, Israel intends to strike down Hamas' spirit and will so that Hamas loses its support from the Palestinian public. Israel's air attack did not reach these goals, thus Israel decided to start a ground attack. The U.S., who is the most capable of interfering in this war, is, at this time, in a power transition. And, it is hard for the UN to make any resolution to restrict Israel. All of these factors have strengthened Israel's determination to launch a ground attack on Gaza." RANDT