MEDIA REACTION: U.S.-CHINA TRADE RELATIONS, STRATEGIC

UNCLAS BEIJING 002994 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: U.S.-CHINA TRADE RELATIONS, STRATEGIC REASSURANCE, JCCT -------------- Editorial Quotes -------------- ¶1. U.S.-CHINA TRADE RELATIONS "U.S. intentions behind playing the 'steel card'" Guangdong 21st Century Publishing Company Ltd.'s business newspaper 21st Century Business Herald (21Shiji Jingji Baodao)(10/29)(pg 2): "On October 26 while in Guangzhou, the new U.S. Ambassador to China, Jon Huntsman, said repeatedly that Sino-U.S. relations are 'positive, cooperative, and comprehensive,' and in their best period ever. However, the trade disputes between the two countries seem to be in full gear. As Assistant U.S. Trade Representative Timothy Stratford noted while in Guangzhou in April, while other countries are reducing their steel production as global demand for steel falls, China's is increasing its steel production, which will have an impact on other countries' market share. Under such circumstances, other countries, including the U.S., will surely take retaliatory measures. The U.S. tariffs, announced as they were so soon before the JCCT, which is intended to prepare for the upcoming visit of President Obama, have aroused more attention than previous cases. The Assistant U.S. Trade Representative's comment also shows that the U.S. is unwilling to open its market to others. When asked about U.S. special protection measures on Chinese tire imports, both the U.S. Ambassador and U.S. Secretary of Commerce Gary Locke said that with more than $400 billion in bilateral trade each year having differences over trade issues is inevitable, and therefore negotiations are very important. The United States' move to impose temporary tariffs on Chinese steel products shows that the U.S. is laying all its cards on the negotiating table for the JCCT." ¶2. STRATEGIC REASSURANCE "The U.S. must provide China with the necessary security guarantee" The official Communist Party international news publication Global Times (Huanqiu Shibao)(10/29)(pg 14): "Now is the time for the U.S. to stop arms sales to Taiwan. If the U.S. really intends to improve bilateral military relations, which reached their lowest point last year, it should decide to stop arms sales to Taiwan now. Since Obama's inauguration as President, the U.S. has not made any moves on arms sales to Taiwan; however, it is still unclear whether or not this is a long-term policy. The U.S. should let this good-will gesture last. The Obama administration has put new demands on China with the new phrase 'strategic reassurance.' In fact, the issue should be whether or not the U.S. can provide strategic reassurance to China. Washington's insecurity is caused by the U.S. itself. For the U.S., making substantive promises to China is a problem of 'easier said than done.' Only when the U.S. cares for China's core interests and leaves China room to develop can U.S.-China relations achieve long-term peace and stability." ¶3. JCCT "Locke came to China to prepare Obama's 'gift' for China; China expects the U.S. to recognize its market economy status" The Shanghai-based Shanghai Media Group (SMG) publication, China Business News (Diyi Caijing)(10/29)(pg A1): "Experts commonly believe that the Joint Commission on Commerce and Trade (JCCT) is a warm up for the two countries' summit next month. What China is most concerned about is whether or not Obama will acknowledge China's market economy status during the visit. Zhou Shijian, a Senior Research Fellow at Tsinghua University's Research Center on Sino-U.S. relations, said optimistically that the U.S. is likely to acknowledge China's market economy status at the JCCT. China will not compromise on the RMB issue. The United States should not be too greedy. The longer it holds on to the recognition of China's market economy status card, the lower its value will be. In the end, the U.S. will get nothing at all. Professor Chen Ping at Peking University's National Development Research Institute said that China made too many concessions when joining the WTO, and argued that the U.S. should recognize China's market economy status since the U.S. needs China's cooperation on the financial crisis. The U.S. also needs China's support in implementing currency stimulus policies and issuing more bonds. Professor Li Ling at Peking University said that even if the U.S. acknowledges China's market economy status, it is still likely to impose tariffs and conduct countervailing investigations on Chinese products. So there will not be much of a difference." HUNTSMAN