MEDIA REACTION: GOOGLE, TAIWAN, FINANCIAL CRISIS

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SUBJECT: MEDIA REACTION: GOOGLE, TAIWAN, FINANCIAL CRISIS

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Editorial Quotes
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1. GOOGLE

a. "Google's global strategy will experience a severe setback if it
withdraws from the China market"

The official popular newspaper Beijing Youth Daily (Beijing
Qingnianbao)(3/14)(pg B9): " Over the past four years, and under the
leadership of its CEO, Dr. Kai-fu Lee, it has not been easy for
Google to increase its market share. Statistics show that Google's
income in the China market was 2.27 billion yuan in 2009, not a
large market share of the China market. Xie Wen, an Internet
expert, said that the damage to China's Internet industry would be
heavy if Google withdraws. This is not a victory for China's
Internet. China needs to retain companies like Google. Yesterday,
Xiang Li a telecom Internet expert said that this was only Google's
attempt at a psychological war. Without China, the Internet
industry and the world will lose a huge market. Losing the China
market would be a big blow to Google's global strategy. In the long
term, there will be larger problems concerning its mobile phones,
their operation systems and other relevant services."

b. "U.S. elections a factor behind the Google incident"

Guangdong 21st Century Publishing Company Ltd.'s business newspaper
21st Century Business Herald (21Shiji Jingji Baodao)(01/14)(pg 3):
"Zhao Jin, deputy director at Tsinghua University's China-U.S.
Relations Research Center, believes that Google's withdrawal is '
for political reasons.' The skilled use of network warfare has
always been a skill of Obama's team and one of its 'soft
strategies.' Following the trade war and arms sales to Taiwan, this
may be the third weapon that the United States uses against China in

2010. This year's mid-term elections and the 2012 presidential
elections are the source of all the oscillations in China-U.S.
relations. However, in the context of the two great powers'
confrontation, Google may become a victim. The upcoming China-U.S.
human rights dialogue is about to open and Google's exit may make
this dialogue a 'needle-to-head battle' (a very serious battle).
According to Reuters, Secretary Clinton has had a banquet with many
senior managers of science and technology companies. Next week she
will address the public about Internet freedom. Zhao also said
Google may become a negotiation chip for the U.S., which the U.S.
will use in exchange for its other interests in China. The
sweetness of the 2009 Sino-U.S. honeymoon still lingers, however in
2010 the bugle call for a match has already been sounded. Such a
quick change reflects what Secretary Clinton called on when she took
office; the U.S.' needs for 'smart power.' Sino-U.S. relations may
become the victims as a result of the Obama administration's efforts
to protect its political interests and safeguard the Democrats'
political domain."


2. TAIWAN

"Let the U.S. know the pain of arms sales to Taiwan"

The official Xinhua News Agency international news publication
International Herald Leader (Guoji Xianqu Daobao)(01/14)(pg 20):
"Luo Yuan, Deputy Secretary-General of the Military Science Society,
and member of the CPPCC (Chinese People's Political Consultative
Conference) National Committee, said that we have to make a
high-profile outreach to advocate the U.S.-threat-theory in opposite
to the China-threat-theory. We have to increase military spending
to accelerate the development of high-tech weapons, which is
entirely forced by the United States and Taiwan. We are not afraid
of the U.S. not wanting to cooperate with us. On the Taiwan issue,
the United States has been insatiable, and has mistaken China's
patience for weakness. Now it is time to expose and count the U.S.
violation behaviors. In fact, China has quite a few cards in hand
for either conducting soft countermeasures or tough countermeasures
against the United States. In the era of globalization, if the
United States does not 'shine,' the world 'shines.' In Sino-U.S.
relations, the U.S. is the 'buyer' and China is 'the seller,' which
means the U.S. has more demands from China than China does from the
U.S. In many fields, China knows well a number of the U.S.'s
weaknesses. The United States is a pragmatic country; it will not
do anything against itself. Well, we will now kick the ball over to
their side. The responsibility of non-cooperation should be borne
by the United States. This is called a strategic game."


3. FINANCIAL CRISIS

"2010 world economic outlook: independent growth is key to recovery"


The official Communist Party People's Daily (Renmin Ribao)(01/14)(pg
23): "Su Jingxiang, a researcher at the China Institutes of

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Contemporary International Relations, said the U.S., Western
European and Japanese economies are still facing many challenges,
which will determine that world economic growth in 2010 will be slow
and fragile. It is very likely that a new major crisis will occur.
Some authorities believe that in the second half of 2010, with
interest rates increasing, the declining effects of the fiscal
stimulus plans, plus the end of inventory adjustment, that the world
will be in a more sluggish recovery. Asian economies will maintain
a relatively rapid growth and continue the world's overall economic
trend which is 'the east overgrows the west.' Li Xiangyang, the
Director of the Institute of World Economics & Politics at the
Chinese Academy of Social Sciences (CASS),argues that the biggest
risk to the world economy in 2010 will be timing the stimulus exit
strategies correctly. A premature withdrawal would mean the
collapse of the economic recovery process and an undo of the effect
of the economic stimulus policies. Withdrawing too late could lead
to a series of financial market turbulences. In the international
scope, there has been broad consensus that 're-balancing,' is a
prerequisite for sustainable growth in the post-crisis era of global
economy. Being affected by this opinion, more and more groups in
developed countries which support trade protectionism, will focus on
the emerging market economies; particularly those in the East Asian
region including China. Li also said that the G20's international
influence has grown larger than that of the G8. The G20 means
coordination, cooperation and progress. The journey for the
development of the G20 mechanism has begun."

HUNTSMAN