MEDIA REACTION: CHINA'S ECONOMY, U.S.-CHINA ECONOMIC

UNCLAS BEIJING 002317

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: CHINA'S ECONOMY, U.S.-CHINA ECONOMIC
RELATIONS, CHINESE MILITARY

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Editorial Quotes
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1. CHINA'S ECONOMY

"Europe and the United States envy China's economic trend"
The official Communist Party international news publication Global
Times (Huanqiu Shibao)(08/12): "China's July Consumer Price Index
and Producer Price Index have both dropped, which shows China's
economy is continuously rising. A British analyst indicates that
China's economy is further developing which makes the west jealous.
Mei Jun, deputy director of Finance and Securities Studies Institute
at Ren Min University said that "although the economy is developing
in a good direction, China's economy still doesn't have a concrete
foundation." China's recently-released economic data is not only
used for domestic decision-making concerning the financial crisis,
but also provides important information for many western economic
experts when judging the world's economy. Some conservative
American think tanks doubt that China fabricates the data because it
needs too. Mei believes that some Westerners have a rather
complicated mentality when looking at China's economy. On the one
hand, they hope China's economy will recover and assist the economic
recovery of their own countries. And on the other hand, they are
worried that China's economy is developing too well, too fast. They
are a little jealous of China's success. To remove the world's
doubts, China has changed the way it publicizes data, so that China
can transmit economic information in a transparent and direct way."

2. U.S.-CHINA ECONOMIC RELATIONS
"China is no longer concerned about U.S. debt? How can Hillary say
this?"
The Shanghai-based Shanghai Media Group (SMG) publication, China
Business News (Diyi Caijing)(08/12): "Secretary Clinton recently
told CNN that she believes that Chinese concerns over the health of
the U.S. financial system have been addressed. However, China's
concern over the security of its investments was not alleviated
following the Strategic and Economic Dialogue. The U.S. and China
did not reach any new agreements in fields other than climate
change, energy and environmental cooperation. The Chinese
delegation urged the U.S. to reasonably control the global supply of
the USD. However, the U.S., which is in the midst of the crisis,
hopes to use a relaxed currency policy to stimulate economic growth.
No signs show that the confrontation has been resolved with
dialogue. Sun Lijian, professor of finance at Fudan University,
said, 'We haven't yet seen signs of relief over U.S. debts.'
Concerning Secretary Clinton's remarks, Sun commented that Clinton
most likely said this because 'the U.S. and China probably reached a
common agreement on how to handle China's foreign reserves. It is
possible that the U.S. has heard China's opinion about its foreign
reserves.'"

3. CHINESE MILITARY
"Chinese army needs to urgently upgrade their long-range delivery
capability"
The official Communist Party international news publication Global
Times (Huanqiu Shibao)(08/12): "Currently speaking, China there is
still a large gap between developed countries in long-range delivery
capability. Developing this capability has been at the top of
various countries' military construction agendas. For China,
upgrading their capability is not only a basic condition for being a
power country, but will also ensure the stable and peaceful
development of the country. As one of the most important trade and
economic powers, China's merchants and ships have reached every part
of the world. Without powerful long-range delivery capability,
China's national and public interests can't be effectively
protected. Although there are still noises in the international
community about "China's military threat," China's determination to
develop their long-range delivery capability will not change. It is
not only China's People's Liberation Army's mission, but also a
necessity for developing China's powerful national strength."
GOLDBERG