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 -------------- Editorial Quotes -------------- ¶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