MEDIA REACTION: SECRETARY CLINTON'S VISIT TO ASIA, U.S.

UNCLAS BEIJING 000380 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: SECRETARY CLINTON'S VISIT TO ASIA, U.S. POLICY, FINANCIAL CRISIS, HUMAN RIGHTS -------------- Editorial Quotes -------------- ¶1. SECRETARY CLINTON'S VISIT TO ASIA "Why does Secretary Clinton visit Japan first?" The China Radio International sponsored newspaper World News Journal (Shijie Xinwenbao) (02/13): "Secretary Clinton has decided to visit Japan first because it is a continuation of the Bush administrations diplomatic legacy concerning Japan. Secretary Clinton intends to strengthen the U.S.-Japan allied concepts in order to deal with the updated situation in Asia as well as taking the U.S. strategic situation into consideration. This shows that the U.S. government's policy during the Bush administration, strengthening the U.S.-Japan relationship, will not change because the Democrats have taken office. The visit shows that the U.S. has become less confident as to whether or not Japan will be as pro-U.S. as it has been in the past. The future situation in Eastern Asia is still hard to predict, but taking preparatory measures is necessary." ¶2. U.S. POILCY "What is the difference between Obama's salary caps and reforming China's State Owned enterprises?" A Shanghai-based news company under Shanghai Media Group, China Business News (Diyi Caijing Ribao)(02/13): "Obama's policy concerning salary caps is temporary. Obama did this in order to reduce the public's tax burden while the government used financial bailout money. Rather than decide the reasonable salary levels for senior executives in the 'bailed out' financial institutions, China should not simply follow the actions of the U.S. The structure under which Chinese executives are paid is totally different than in the U.S. Reform in China is very slow because senior officials are likely government officials and not selected from the public which, in effect, is negative for China." ¶3. FINANCIAL CRISIS "Spending not so easy" The official English-language newspaper China Daily (02/13): "China's rapid accumulation of foreign exchange reserves in recent years has been a subject of controversy. Some Westerners have even gone as far to blame the savings glut as the cause of the global financial crisis. Chinalco's plan to invest $19.5 billion in Rio Tinto Group, the country's largest overseas acquisition, is the latest litmus test in the international environment for China to spend money. ...Any open-minded discussion about the options of financing is certainly welcome, but it is another thing to sway shareholders with implicit or explicit discrimination against a state-owned Chinese company. The failure by CNOOC, a Chinese oil giant, to take over the American oil company Unocal in 2005 still serves as a useful reminder of politically motivated opposition faced during overseas expansion. The current global financial crisis and economic downturn, in theory, should make China's outward investment more welcome than before. Chinese spending will not only help reduce imbalances in the world economy but also offer funds for other economies to combat the global recession. But that does not mean unjustified political objections will not stand in the way. As equal players in the global market, Chinese companies should not be deprived of investment opportunities for non-business factors." ¶4. HUMAN RIGHTS "China's report on Human Rights disappoints the U.S." The official Communist Party international news publication Global Times (Huanqiu Shibao)(02/13): "The UN Human Rights council has passed China's Human Rights Review. This decision has angered and disappointed Western media and Human Rights advocates. Because of their disappointment, they exaggerate the reporting surrounding the report, stating that China refuses the advice of the West on human rights. They have also attacked the advice that developing countries have been giving China. Chinese experts believe that human rights are complicated conceptually. It is impossible that Western countries exist by imposing their standards on developing countries. The review of human rights report on China is like a diplomatic competition. Developing countries and the West are holding completely opposite stances on the issue. Chinese experts indicate that China and other developing countries have paid more attention and priority on developing rights, while the West pays more attention on political rights. More and more developing countries are beginning to accept China's opinion. China, on the one hand, insists on the priority of human rights, on the other hand, admits problems exist accepting criticism and making improvements." PICCUTA