UNCLAS BEIJING 001330

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: NEW U.S. AMBASSADOR TO CHINA, U.S.-CHINA
ECONOMIC RELATIONS

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Editorial Quotes
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1. NEW U.S. AMBASSADOR TO CHINA

a. "U.S. puts great emphasis on the nomination of their new
Ambassador to China"

The official Communist Party international news publication Global
Times (Huanqiu Shibao)(05/18): "Obama personally announced that the
Governor from Utah, Jon Huntsman, will be the new Ambassador to
China. Huntsman is a 'China hand' who is familiar with Chinese
issues. He has adopted a Chinese daughter. He is at the top of U.S.
headlines for becoming the new Ambassador to China. What is more
unusual is that Huntsman's family is famous and he has an invaluable
political future. He is the new star of the Republican Party. No
Ambassador to China yet has had such a powerful political
background. Huntsman's acceptance of the position by giving up his
independent political life has shown how attractive the position is.
He is capable of attracting more attention from the American public
to Beijing.

China is a big country, with an important diplomatic position to the
U.S. Thus the nomination for the new U.S. Ambassador to China has
been cautious and time-consuming. The Chinese will be satisfied if
Huntsman comes to China, because, due to his senior level, he is
able to bend the ear of the President. Under emergencies, a quick
and accurate transmission of information can avoid crisis. But we
still can't say how he will treat China."

b. "From his nomination, one can look at Obama's China-policy"

The official Communist Party international news publication Global
Times (Huanqiu Shibao)(05/18): "It is surprising that Obama has
nominated Huntsman as the Ambassador to China. This shows that the
U.S.-China bilateral relationship is the most important U.S.
relationship. The Ambassador to China will be the most important
person dealing with the most important relationship. A relationship
that is also very unstable. Jon Huntsman has rich and wonderful
political experience. Nominating him as the Ambassador is like good
steel for a good knife. The Obama administration needs the
Republican Party's support in establishing their U.S.-China policy.
Huntsman has not only been a member of the Republican Party, but he
has also been a strenuous supporter of McCain, who has essential
influence in military and diplomatic policy-making decisions in the
Senate. The nomination of a Republican as the new Ambassador to
China will likely make the dialogue and exchanges between the two
countries, concerning human rights and democracy, progress more
smoothly. Historically, Jon Huntsman may be the only Ambassador to
China, who has a richest history with China. Obama's nomination
tells us that he knows that in order to deal with a country; one
must lower his position and start from a basic understanding of the
country's special history, culture and politics. It is believed
that Huntsman's experience in China will make him an outstanding
Presidential candidate in 2016."


2. U.S.-CHINA ECONOMIC RELATIONS

"China must increase its purchase of American bonds"

The official Communist Party international news publication Global
Times (Huanqiu Shibao)(05/18): "In March, China continued to
purchase American bonds by 23.7$ billion U.S. dollars. Chinese
experts believe that increasing the purchase of American bonds is
like picking up the least ruined apple from a pile of ruined apples.
Currently, China may have decreased some of its other assets, but
it may be increasing its American bonds. It is still unknown when
the current financial crisis will end. Looking at the world's
market, the situation in Europe and Japan is even worse than in the
U.S. When there is no better choice, the U.S. is not a bad choice.
Although China will increase its purchase of American bonds, a
structural change will take place. This change includes increasing
their short-term bonds and decreasing their long-term bonds."

WEINSTEIN