MEDIA REACTION: U.S.-CHINA RELATIONS, U.S. DIPLOMACY,

UNCLAS SECTION 01 OF 02 BEIJING 000644

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: U.S.-CHINA RELATIONS, U.S. DIPLOMACY,
FINANCIAL CRISIS

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Editorial Quotes
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1. U.S.-CHINA RELATIONS

a. "U.S. to offer more carrots, fewer sticks abroad"

The official English-language newspaper China Daily (03/12): "Smart
power replaces the lineal trade-off model of hard power, or the
threat of actual use of bullets or other armed military force, with
soft power, or the power of ideas, at the other end of the scale.
Too much FORCE has only created or encouraged more enemies.
Throughout the cold war, the U.S. projected an image of vast
technical competence....But in the past eight years, the U.S.
projected a very different, or to be more exact, a bullying image.
Now the domestic reality in the U.S. asks for wiser policies abroad.
It would simply be the smart thing to do. Smart power could start
to make a difference. But it will not solve all of the U.S.'
problems if it shows no respect for other countries and recognizes
their legitimate interests in their regions. While the new
administration has extended a hand, it remains to be seen if others
will accept it."

b. "U.S. military conducts intensive intelligence activities around
China; The U.S.-China dispute in the South China Sea"

The official Communist Party international news publication Global
Times (Huanqiu Shibao)(03/12): "The U.S.-China dispute concerning
the incident in the South China Sea is quickly expanding. Since the
1990s, U.S.-China frictions between the spying and anti-spying
activities around China have not ceased. This confrontation is
considered the most serious incident since the airplane collision in

2001. Long term spying activities by the U.S. in China's waters and
air space have greatly threatened China's national security.
China's move expelling the American ship should be affirmed.
Recently, since foreign media have been repeatedly reporting on
China's construction of a harbor base for submarines or even
aircraft carriers at Hainan, American surveillance ships took the
risk of spying in the area. Up to this point, only a small part of
the U.S.'s spying activities near China's coastal area have been
revealed. The U.S. military has constructed an all-around spying
network against China, maintaining intensive and continuous
surveillance. Chinese military experts indicate that it is very
abnormal for the U.S. to always spy on China in China's neighboring
area. What if Chinese spy airplanes spy on the U.S. coastal area?
China has been enduring this for a long time, considering the
bilateral relations, which however has offered an excuse for the
U.S. to upgrade its spying activities wantonly. China is sending a
clear signal to the U.S. that other countries' sovereignty should be
respected. Anti-spying fights will test the Chinese military's
wisdom and ability in the future."


2. U.S. DIPLOMACY

"Hillary's [Secretary Clinton's] 'diplomatic show'"

21 Century Business Herald (21Shiji Jingji Baodao) under Guangdong
21 Century Publishing Company Ltd. (03/12): "U.S. Secretary of State
Hillary [Clinton] has finally finished her trip around the globe and
her so called 'smart power' is gradually taking shape. However, it
lacks a fresh feeling. After Obama took office, there was a chance
for the U.S. to repair its relationship with the Middle East and
Europe. Hillary's [Clinton] trip was part of this plan. Like a
goodwill ambassador she had big smiles, said nice things and avoided
controversial issues. However, the success of the trip, this far,
is only successful atmospherics. She has gone too far in 'putting
on the show.' Obama and Hillary's [Clinton's] 'smart power'
diplomacy have made people feel that it is like an election
campaign. As Kennedy once said, 'sincerity needs to be always
verified.' This 'diplomatic show' will not solve the foreign
problems of the U.S."


3. FINANCIAL CRISIS


"To give up free trade is equal to giving up leadership"

The official Communist Party international news publication Global
Times (Huanqiu Shibao)(03/12): "The growth of the global economy is
symbolized by Western oceanic hegemony. They control the world trade
channels and are establishing and maintaining the international
trade lines. All of these [Western hegemonic] countries support
free trade at sea. Free trade and protectionism are mutually
complimentary and reversible. Free trade does not simply lead to a
win-win result and protectionism doesn't mean a loss for both sides.
It is necessary that an international leader should insist on free
trade and take on international responsibilities. With a long-term

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large trade deficit, can a country's currency supply the world, set
up currency hegemony, etc? This time the economy of the U.S. and
the world has gone wrong. The U.S. attitude was the worst. The
U.S. does not lack resources, but what it needs is cultural and
moral strength. It is the U.S. political system that has problems.
U.S. Congressmen lack an international point of view and are only
responsible for their citizens and interests groups. In this way,
the U.S. will lose its leadership role and the international
economic order will be destroyed by the U.S. Ironically China,
described as narrow-minded nationalists by the West, upholds free
trade this time. China is willing to take on larger
responsibilities. Stabilizing the domestic economy and developing
it is the most important task for China. China is proving to the
world that China's rise has only brought peace and stability, not
threat."

PICCUTA