MEDIA REACTION: SECRETARY CLINTON'S VISIT TO ASIA,

UNCLAS BEIJING 000401

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.-CHINA RELATIONS, ECONOMIC STIMULUS PLAN

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Editorial Quotes
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1. SECRETARY CLINTON'S VISIT TO ASIA

"Secretary Clinton calls for 'When you are in a common boat, you
need to cross the river peacefully together' between the U.S. and
China"

The official Communist Party international news publication Global
Times (Huanqiu Shibao)(02/17): "Secretary Clinton has become the
first American Secretary, in the last 50 years, to visit Asia for
their first official visit. Her concept of 'smart power' and the way
that it will work in Asia, is likely to face challenges globally.
Major U.S. media organizations have indicated that China is the true
focus of the Secretary's visit to Asia. In Secretary Clinton's
recent speech, she suggested that the U.S. and China were 'in a
common boat and should cross the river peacefully together' which is
an old Chinese aphorism. However, she has not relaxed concerning
China's human rights issues and how she will discuss these issues is
still unclear.
Secretary Clinton's arrival in Japan has not yet removed Japan's
concern that the Obama administration is 'emphasizing China and
neglecting Japan.' Chinese experts have commented that Secretary
Clinton's trip to Asia has obviously made serious considerations
concerning the closeness of relationship, the importance of the
different countries and the administration has tried to maintain a
balance accordingly. On the closeness of relationship, Japan is
closer to the U.S.; however, when it comes to whose issues is more
importance to resolve, China weights more. In fact, the Chinese
people don't care much whether Secretary Clinton visits Beijing
first or second, but, Japan is quite sensitive about it."


2. U.S.-CHINA RELATIONS

"The timing and effect of the China-U.S. defense diplomacy"

The official Xinhua News Agency international news publication
International Herald Leader (Guoji Xianqu Daobao)(02/17): "Secretary
of State Hillary [Clinton's] visit to China will re-open defense
diplomacy, which is a positive sign for the steady engagement
between the U.S. and China. It is important timing, because Obama
just stepped in the post. It shows Obama hopes to continue contact
with China. The defense diplomacy was stopped when the Bush
administration stated that it would sell arms to Taiwan. It is
reopening because the Obama administration realizes that this is an
issue that it wants to, very sensitively, deal with. The reopening
is also happens during Secretary Clinton's visit to Asia. It shows
that Hillary [Secretary Clinton] wants to increase the power of the
State Department by updating several different dialogues while
speaking in China. Although the two nations have formed a certain
strategic cooperative partnership, advancing further in the defense
field is not an easy task. Some American strategists still see China
as a potential enemy. So, as the core of national security, defense
diplomacy will embody many uncertainties."


3. ECONOMIC STIMULUS PLAN

"Core issues for U.S. economic stimulus package and economic
recovery"

A Shanghai-based news company under Shanghai Media Group, China
Business News (Diyi Caijing Ribao)(02/17): "There is little room for
the Obama administration to adopt trade protectionism and exchange
rate polices. Obama can only solve the existing problems in the
financial and housing markets when the American economy has enough
strength to fend for itself. First, the administration must resolve
a large amount of financial bad debt assets as well as the
government's difficulties in debt regulations and financing. The
U.S. will use measures of trade protectionism and exchange rate
manipulation to deal with the financial crisis and China. But the
effect will be limited. Meanwhile, many countries including AMERICA
and Europe are hoping that China will help them through this
difficult time. The international currency and financial system
reform, proposed by the EU, are calling for cooperation from China.
China needs more various and flexible measures to expand its
domestic consumption."

PICCUTA