MEDIA REACTION: U.S. - CHINA RELATIONS, U.S. POLICY, NORTH

UNCLAS SECTION 01 OF 02 BEIJING 000160 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, U.S. POLICY, NORTH KOREA, FINANCIAL CRISIS -------------- Editorial Quotes -------------- ¶1. U.S.-CHINA RELATIONS "China could take more initiative when dealing with Obama" The official Communist Party international news publication Global Times (Huanqiu Shibao)(01/20): "Recently, American scholars advised Obama to visit China for his first official presidential visit. Although Obama decided not to take the advice, the sensitivity, understanding, and openness of the American intellectuals and think-tanks responsible for this advice are admired by Chinese scholars. Why is it that Chinese scholars have not reciprocated by taking the initiative to visit the U.S., attend the inauguration, or further their diplomacy with the U.S.? After Obama takes office, on the one hand, the U.S. needs China's cooperation to revive its domestic economy and consolidate the U.S. dollar's monopoly position; but, on the other hand, the U.S. may resume U.S.-China trade disputes in order to shift the trade deficit with China. Both choices are possible and depend on China's diplomacy efforts. Only when China takes initiative and influences the U.S.' decision-making on major foreign policy initiatives, will the U.S.-China relationship have a good start during Obama's post." ¶2. U.S. POLICY "Don't be overly sensitive about the concept of 'smart power'" The official Communist Party international news publication Global Times (Huanqiu Shibao)(01/19): "Chinese experts always respond quickly to new American phrases, busying themselves with analyzing and comprehending each phrase. Recently they focused on the phrase 'smart power'. The world will still operate without the U.S. And, Chinese analysts should not focus on the U.S. alone. Hillary mentioned the phrase on a special occasion given her new identity. She did not come up with the idea. The phrase has become popular because people are fed up with Bush's concept of 'war on terror', etc. What's more, in fact, the concept of 'smart power' is old wine in a new bottle. Smart diplomacy does not depend on what a politician says, but on what that politician does. China should wait and watch for further developments and then make a conclusion." ¶3. NORTH KOREA "North Korea threatens to fight, in all aspects, against South Korea" The official Communist Party international news publication Global Times (Huanqiu Shibao)(01/19): "The North Korean military has recently said that it will have an all-out confrontation with South Korea. The North Korean foreign affairs department has warned the U.S. that it can live without the formalization of the North - South relationship, but cannot live without nuclear weapons. Experts believe that this is simply a negotiation strategy for North Korea. However, the South Korean military believes that it is more than just a tactic. Chinese experts indicate that it is not a surprise that this has happened. The North-South confrontations and the U.S.-North Korea conflict have never been solved. North Korea was eager to improve relations with the U.S. but has not gained their attention because the U.S. is busy with the financial crisis. Obama is a side-liner on the North Korea issue. However, the current South Korean government is a hard-liner on the North Korea issue. This is just a ploy, the North Korean government really intends to take action during the U.S. power transition to promote the conciliation process of U.S.-North Korea relations and North-South relations." ¶4. FINANCIAL CRISIS "U.S. has itself to blame for the financial meltdown" Liu Junhong, a researcher with the China Institutes of Contemporary International Relations, commented on the official English-language newspaper China Daily (01/20): "Along with drastic tax reductions, almost all nations have resorted to an expansive fiscal and a loose financial policy over the past four months to tackle the global financial crisis that broke out in the US. ...It is regrettable to see a responsibility-evading attitude from the United States, the epicenter of the global financial crisis. ...From a financial and economic perspective, the ongoing financial crisis is a combination of securities and banking problems in the U.S. ...The U.S. financial crisis lies in its ill-conceived financial capital mode and was directly ignited by the burst of the bubble in its housing market. The busting of its property bubble also helped trigger another inflated bubble in the consumption market. It is well known that the U.S. economy has long been driven by robust consumption and even by individual and government BEIJING 00000160 002 OF 002 overspending. ...The busting of the current housing bubble also triggered the bursting of the consumption bubble. ...The lack of strong consumption together with a defective crediting system has rocked the foundation of the market economy and now threatens to have a far-reaching impact on the global economy." PICCUTA