MEDIA REACTION: U.S. Policy, ASEAN Summit & Protests in

UNCLAS SECTION 01 OF 02 BEIJING 000970 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 PREL ECON SUBJECT: MEDIA REACTION: U.S. Policy, ASEAN Summit & Protests in Pattaya, Chinese Spying -------------- Editorial Quotes -------------- ¶1. U.S. POLICY "For the first time, the U.S. simulates an Economic World War" The official Communist Party international news publication Global Times (Huanqiu Shibao)(04/13): The Pentagon simulated a military drill on the theme of economic security. Many economic experts were involved in this drill. This simulation was planned before last September when the financial crisis broke out. The results of the simulation showed that, in the event of an economic war, America's power would be seriously weakened while China's power would be strengthened. A Chinese expert said, "Nobody in China wants to have an Economic War with the U.S. However, the American military is simulating this war. They are too aggressive." Niu Xinchun, from the China Institute of Contemporary International Relations, told Global Times on 12th that the major global countries are worried about an economic war. China and the U.S. are afraid of each other and they are in a "terrible balancing" situation. China and the U.S. are closely dependent on each other in the economic field. The Pentagon's simulation reflects the concerns of some Americans concerning the U.S-China bilateral economic ties. Niu thinks that the results of this simulation are not that convincing, suggesting that it is impossible that China would be the winner in an economic war. The U.S. and Russia are important trade partners for China and exporting is the key element of the Chinese economy. If both America's and Russia's economy encounter troubles, China's economy will definitely be influenced. This simulation also indicates that overall the American national security policies are obviously leaning towards an economic tilt. ¶2. ASEAN SUMMIT & PROTESTS IN PATTAYA a. "The multiple reprises [objectives] of Asia" The official Xinhua News Agency international news publication International Herald Leader (Guoji Xianqu Daobao) (04/13): Unfortunately, because of Thailand's domestic issue the reprises [objectives] of the city of Pattaya are postponed. The ASEAN 10+3 summit was considered an important meeting for Asian countries to jointly self-rescue their economy and rescue others as well. The opportunity to boost confidence in the Asian economy has been lost. Fortunately, this opportunity is only delayed and not canceled. The postponement of this summit has nothing to do with regional financial integration. The financial crisis has actually pushed the process of regional financial integration forward. The current global crisis may bring yet another opportunity. As an area whose economy has developed the fastest over the past 10 years, East Asia is bound to carry the responsibilities to rescue its own economy and others. This obligation will push the cooperation within Asia to a higher level. Asia lags behind when compared to Western Europe because their domestic issues stand in the way of their integration. People still have confidence in Asian countries. Harmonious dialogue and communication are the only choices for Asia if it wants to realize regional financial integration. b. "Thailand Prime Minister is nearly captured by the 'red shirts army'" The official Communist Party international news publication Global Times (Huanqiu Shibao)(04/13): Bangkok is in an emergency situation. Military tanks are being driven on the streets of downtown. The situation in Thailand has become more antagonistic. According to British Returns, the demonstrators nearly captured the current Thai Prime Minister when they entered into the Department of Interior. The former Prime Minister, Thaksin, delivered a phone speech calling more people to attend the demonstrations against the current government, while the current Prime Minister, Abhisit, delivered a speech via TV warning the demonstrators against continuing. Meanwhile, the Thailand police are playing a game where they are "doing nothing". According to the Global Times reporter, the relations between police and the demonstrators seem quite "harmonious". Researcher He Sheng from the Chinese Institute of Contemporary International Relations thinks that a situation such as this has never happened in East Asia or in Asia before. An important international meeting was cancelled because the domestic situation is out of control. This is a big waste for national and international resources. This event sets the precedent of ruining an important summit by violence. It is a warning to every country. The entirety of East Asia is disappointed about this disturbance. "It's a pity to postpone the summit....Every attendant of this summit has regrets and suffers a loss" He Sheng said. c. "[Focus] Disturbance in Thailand" BEIJING 00000970 002 OF 002 The Shanghai-based Shanghai Media Group (SMG) publication, China Business News (Diyi Caijing) (04/13): This disturbance may cost about 5.7 billion USD for the Thai economy. A financial employee in Bangkok told CBN [China Business News], "I felt very embarrassed as a Thai. Canceling this summit destroyed the image of Thailand. It's not easy to hold a summit....this summit is very important to the economy,' he continues, 'I think the security should be strengthened. The army should maintain the steadiness of Thai situation more efficiently.... We are busy with political power fights while other countries are striving to stimulate their economy." The Thai government is a mess. A Thai officer told a CNB reporter that 'the government has made a lot of efforts for the financial crisis. But it's hard to tell when and how this political crisis will stop." A Thai businessman says that Prime Minister Abhisit has developed a series of stimulus packages to stop the downturn of the economy. If he resigns, this plan will become irrelevant; a stable government can play a vital role in domestic economic recovery. Expert Zhang Xizhen from Peking University told CBN that this disturbance by the "red-shirts" has seriously impacted Abhisit's government and brought a negative international image. Both of these add weight to Abhisit's resignation. However, it's hard to say that Thaksin is the clear winner. Professor Pongphaichit from Chulalongkorn University expressed that there were obstacles for Thaksin's return to Thailand, including the "yellow shirts army", the King of the Thailand, and his corruption charges. ¶3. CHINESE SPYING "Western countries are seriously wrong about the capacity of Chinese spying" The official Communist Party international news publication Global Times (Huanqiu Shibao)(04/13): Recently the criticism concerning "Chinese spying" is more frequent than the criticism which attacked the KGB, the Soviet organ of state security, during the Cold War. A Chinese Foreign Ministry Spokesman responded that these criticisms are the symptoms of those people affected by the "China Threat" virus and the "Cold War ghost". A Western intelligence researcher and a Chinese scholar both think that it is very "unprofessional" to sensationalize the news concerning Chinese spying activities [conducted by individuals]. Judging from the global trend, individual spies are declining. The exaggeration of a Chinese spy reminds people of the Cold War. Li Wei from China Institution of Contemporary International Relations says that this kind of sensationalized news can reflect a lack of overall knowledge concerning intelligence collecting. The capacity of China's intelligence collecting is much exaggerated. Li says that the U.S. used to collect intelligence with the help of advanced equipment and via blackmail to help American companies gain contracts. France did similar things. But China has never done this. Moreover, China doesn't have sufficient capital or the advanced technology necessary to do so. China's internet also undergoes attacks. A Chinese military expert, Dai Xu says that "the U.S. and other western countries are driven by 'plot theory'. Western countries threaten others by [releasing] information gained through spying in order to damage the reputations of other countries." This is the cheapest and most antagonizing method used between countries. A Western intelligence researcher thinks that this is just a stubborn disease from the Cold War era that western countries resist curing. "The sentiment of the statement: 'Chinese spying' shows that the biases toward China still exist," says Li, "the most efficient means to combat it, is to ignore it." Li opines that according to the published or reliable materials, there are no records of China's conducting any actions of technical spying. Active spying activities usually occur when the conflicts between two countries are clear and obvious. But the relationship between China and other western countries are currently in a normal phase. Weinstein