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

UNCLAS SECTION 01 OF 02 BEIJING 001207

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 PREL ECON

SUBJECT: MEDIA REACTION: U.S.-CHINA MILITARY RELATIONS, FINANCIAL
CRISIS, A(H1N1)

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Editorial Quotes
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1. U.S.-CHINA MILITARY RELATIONS

a. "China rebuts U.S. Senior Official's criticism"

The official Communist Party international news publication Global
Times (Huanqiu Shibao)(05/06): "Michael Mullen indicated two days
ago that China's efforts to strengthen the navy and AIR FORCE are
mainly pointed at the U.S. This is the first time that a U.S.
official has directly pointed out that China's military strength
development points at the U.S. This type of sentiment will
negatively influence the relationship. It is irresponsible and will
not benefit U.S.-China military relations. Two years ago a military
hot-line was established between the two countries. And therefore,
doubts between the two began to be resolved. However, this year
there have been frequent opinions concerning China's military threat
within the U.S. military. The bilateral trust has been challenged.
The U.S. has complicated ideas about relations with China. On
politically, the U.S. hopes that China will cooperate on their
anti-terror war; economically, the U.S. needs China's help to walk
away from the financial crisis; however, militarily, the U.S. is
vigilantly against China. China should be vigilant concerning this
new round of the 'China threat theory' jointly promoted by the U.S.
and other countries. The think-tanks in the U.S. have begun to take
action. The U.S. should treat China's rise calmly. China's rise is
inevitable."

b. "Defense Official fires back at U.S. rhetoric"

Global Times English (English-language daily published by the
People's Daily): "An official at China's Ministry of National
Defense told the Global Times yesterday on condition of anonymity
that U.S. Admiral Michael Mullen's words were 'irresponsible and
worked to the disadvantage of the development of Sino-US military
relations.' ...'In sharp contrast to President Obama's live show,
this guy is talking straight,' said Zhang Zhaozhong, a Rear Admiral
of the People's Liberation Army (PLA),who said he doesn't believe
that the U.S. will become a friend to China. Any 'cheers' given to
China by other U.S. officials have been 'aimed at seeking economic
help from China,' Zhang said. Zhang noted that the U.S. military
budget for next year is $670 billion and there is no indication that
the U.S. will sacrifice its military might. The reason the U.S. has
delayed unveiling its military strategy is because it doesn't want
to provoke other countries, Zhang said.

Peng Guangqian, a major general, called Mullen's criticism on
China's military development 'an old issue,' telling the Global
Times yesterday that such claims are always used as a means to
satisfy America's own needs. Peng said that the U.S. has a complex
anxiety disorder on China's development and always worries that
other countries will challenge its own dominance. And Li Jie, a
military expert on the Chinese Navy, told the Global Times that
Mullen's words are unfounded, as the U.S. is so strong and its
military spending equals that of more than a dozen countries
combined. However, the challenge emerging from China is even more
formidable than some Middle East territorial concerns..."China
sticks to the path of peaceful development and pursues a defensive
defense policy," said Ma Zhaoxu, spokesman of the Chinese Foreign
Ministry, at a regular press conference yesterday.

'The U.S. has successfully coaxed Australia into approving a
military budget of $70 billion to boost its defenses over the next
20 years,' Zhang said. Wang Haiyun, a senior consultant at the
China Center for International and Strategic Studies, argued that
China's military build-up is out of the necessity to safeguard its
state sovereignty, given that it is facing a grave security
situation.
It is only natural for China to build up its military.


2. FINANCIAL CRISIS

"Don't expect the world economy to return to its original status"

The official Communist Party international news publication Global
Times (Huanqiu Shibao)(05/06): "Recently, rumors have spread that
the world economy and the Chinese economy have hit bottom. However,
the future is not optimistic for the global economy. Currently, the
financial crisis is still the main crisis. The root cause of this
crisis is the related nature of finance and currency. This has
developed into a broader and more serious economic crisis. This
crisis has severely damaged the original economic order. The
economic divisions of the world have been impacted. China's
economic prosperity relies on comparative advantages. If China
can't utilize these advantages, it has to go through a long and hard
process of adjustment. Enlarging domestic needs is a good

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resolution. It is easy to enlarge investment needs, but difficult to
enlarge consumption needs. Excessive capital will suppress
consumption. What's more, technological renovation is also
important. It will urge the Chinese to spend money in their
country."


3. A(H1N1)

"North America complains about the over reaction to the virus"

The official Communist Party international news publication Global
Times (Huanqiu Shibao)(05/06): "There are increasing complaints from
the affected areas in North America concerning the over reactions to
the virus. These complaints have obviously influenced western media.
There are also complaints about the reaction of the WHO. The
officials of the WHO have expressed that before people really know
what the new virus is and how it spreads; any kind of prevention
measure is understandable. It is too early to claim that there have
been over reactions. Canada also cannot understand China's isolation
measures. Chinese experts indicate that the A(H1N1) virus has, once
again brought up the security issues experienced during the SARS
episode. Chinese people realize that this issue is not just a public
health issue, but also an issue concerning national security. The
A(H1N1) virus is still unknown and unpredictable. It should be
understandable that a country has to make preparations according to
the worst situation possible. Any sentimental comments will be
helpless."

PICCUTA