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

UNCLAS BEIJING 000377 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: PREL ECON SENV KGHG KMDR OPRC CH SUBJECT: MEDIA REACTION: U.S.-CHINA RELATIONS, IRAN -------------- Editorial Quotes -------------- ¶1. U.S.-CHINA RELATIONS a. "Sino-U.S. competition will see who changes its growth method first" The People's Daily-sponsored and internationally-focused commercial news publication Global Times (Huanqiu Shibao)(02/12)(pg 14): "Both the United States and China are seeking new advantages [solutions] for their respective domestic situations. President Hu Jintao emphasized in his speech at the ministerial-level, main leader's conference the importance of stepping up the transformation of China's economic development method. This policy is a prerequisite for China to gain new economic high ground within international competition and gain new advantages in the post-crisis era. Although Obama just announced his intent to sell arms to Taiwan, as his State of the Union Address said, in 2010 employment will be the most important task for the Obama administration. The U.S. and China are both a part of each other's big international strategy. To a certain extent, the two countries' economic transformations are complementary to each other and are each other's cause and result. If the two do not accelerate the pace of their domestic economic adjustment, they will be unable to cooperate on global issues, deal with climate change or new energy development. However, their bilateral cooperation will bring new friction and long-term competition. Despite this, the possibility of a 'Sino-U.S. Cold War' in fact can be ruled out. Even so, after a period of time the two countries always step away from sensitive issues, like Taiwan or Tibet. In the long run, time will be on China's side. This has been proven by a number of past rounds of the Sino-U.S. competition." b. "The use of RMB internationalization to fight against U.S. pressure" The China Radio International sponsored newspaper World News Journal (Shijie Xinwenbao) (02/12) (pg 2): "The biggest constraint on a country's capacity to act is its 'asymmetric dependence.' Considering China's economic weight, as well as the decline of U.S. economic strength, China's huge holdings of U.S dollar reserves and U.S. government bonds have made the U.S. rely on China to maintain the dollar's hegemony. Obviously, for the United States, continuing to promote China's dependence on the dollar is in line with its interests. The United States is trying to get China's foreign reserve assets to shrink, so that China's "financial nuclear weapon" will be automatically disarmed. The best way to counter U.S. pressure against China's interests is not to fight a trade war with the U.S., which will cause less harm to the U.S., while costing China dearly. The most effective and most likely fundamental solution to the issue lies in accelerating the push for RMB internationalization." ¶2. IRAN "Iran will end up in a tragic position for being so stubbornly hard-line" The People's Daily-sponsored and internationally-focused commercial news publication Global Times (Huanqiu Shibao)(02/12)(pg 14): "In principle, under the necessary circumstances China does not oppose sanctioning Iran, but China proceeds in a very cautious manner. The international community seems to think the ball on the Iran issue is now in China's court, but in fact, the ball has never been on China's side, but on Iran's side. Iran is the major player for the Iran issue [its own issue]. China embraces two principles on the Iran issue: first, maintaining the authority of a nuclear nonproliferation system; and second, advocating a political resolution to the Iran issue and avoiding any excessive and unnecessary sanctions against Iran. By now, China-Iran cooperation is win-win and mutually beneficial. Because China treats Iran as a friend, China asked Iran to take an acceptable stance in the international society. If Iran is stubbornly taking a hard-line stance, Iran's nuclear issue will definitely end up in a tragically. China maintains friendly relationships with all the Middle East countries. It hopes to maintain peaceful and normal relations with four main ethnic nations in the region and doesn't hope to incur any new conflicts. China understands Iran's hope of possessing nuclear deterrence. China's nuclear deterrence has also been developed under the West's pressure. But time changes, China and Iran, who both sign non-nuclear proliferation treaty, should obey it." HUNTSMAN