MEDIA REACTION: S&ED IMPACT ON U.S.-CHINA RELATIONS,

UNCLAS BEIJING 002184

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: PREL ECON KMDR OPRC CH

SUBJECT: MEDIA REACTION: S&ED IMPACT ON U.S.-CHINA RELATIONS,
CARBON TARIFFS

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Editorial Quotes
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1. S&ED IMPACT ON U.S. CHINA RELATIONS

"What challenges is Obama's China policy facing?"

The official popular newspaper Beijing Youth Daily (Beijing
Qingnianbao) (07/31): "In many Chinese experts' eyes, the U.S. was
ultra-courteous to the Chinese delegation at the S&ED, and a broad
range of issues was covered in this round of talks. This
demonstrated that the U.S. is seeking to strengthen cooperation with
China. Zhang Guoqing, a research fellow at the Institute of
American Studies at the Chinese Academy of Social Sciences, argues
that there are four challenges for Obama's China policy. First,
will the U.S. fully take into account China's requests? This is not
only important for the economic and technical collaboration between
the U.S. and China, it is also important as a real litmus test of
Obama's commitment to improve the U.S.-China relations. Second,
will the Obama Administration fulfill the promises it made at the
S&ED? This will have a great impact on world stability. Third,
will the U.S. government be able to deal with domestic pressures?
Whether Obama's China policy will continue this way remains to be
seen. Fourth, can the U.S. government focus on important issues and
put minor problems aside? A systematic risk prevention mechanism
should be put in place to complement the S&ED."

"Sino-U.S. S&ED lays cornerstone for regional cooperation"

The Shanghai-based Shanghai Media Group (SMG) publication, China
Business News (Diyi Caijing) (07/31): "Although China and the U.S.
discussed global issues [at the S&ED], this does not indicate that
the U.S.-China relationship has entered a new era. Experts think
that a possible solution for the North Korean nuclear issue could be
that the U.S. and North Korea will engage in bilateral talks first
and then return to the Six Party framework. The Talks are expected
to play a role in Northeast Asia similar to the Shanghai Cooperation
Organization's role in Central Asia: the Six Party Talks might
develop into a permanent mechanism for security consultations in
Northeast Asia which could cope with conflicts in the region beyond
just the North Korean nuclear issue. When the North Korean nuclear
issue is resolved, this mechanism can remain for continued security
consultations in Northeast Asia. On the Afghanistan issue, China
cannot cooperate with the U.S. on military activities, though China
has already started helping Afghanistan in its reconstruction."


2. CARBON TARIFFS

"'Carbon tariff' interrupts cooperation on climate change"

The official Communist Party People's Daily (Renmin Ribao) (07/31):
"The concept of 'carbon leakage' has been exaggerated and given way
too much political significance. It has become an excuse for
developed countries to avoid taking action. Developed countries
also use it to demand that developing countries participate in
mandatory emission reductions. This is something developing
countries will not accept. As a matter of fact, the loss to
industry competiveness resulting from emission reductions is not as
severe as some people claim. Developed countries should not be too
concerned about this. The right to life is more important than a
fair market. Developing countries have a shared belief that the
'carbon tariff' is trade protectionism under the guise of
environmental protectionism."

GOLDBERG