Cablegate: Media Reaction: Economic Crisis, Central Asia

VZCZCXRO2085
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #4625 3570829
ZNR UUUUU ZZH
R 220829Z DEC 08
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 1526
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI

UNCLAS BEIJING 004625

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: ECONOMIC CRISIS, CENTRAL ASIA

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Editorial Quotes
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1. ECONOMIC CRISIS

a. "China should learn to deal with a high unemployment rate in
order to develop"

The official Communist Party international news publication Global
Times (Huanqiu Shibao)(12/22): "The slowing economy has led
factories to cut jobs. Joblessness in China is rising, prompting
fears of social unrest. How well can China handle this problem will
determine China's sustainable development. China shouldn't be afraid
of a high unemployment rate as it is just a natural outcome of the
adjustment to a market economy. China is entering the industrial age
but it is far from industrialized. Knowledge-intensive industries
such as the high-tech industry should receive more attention than
labor-intensive industries. The workforce needs to be redirected to
those industries. To handle a high unemployment rate China should
improve its unemployment insurance and assistance systems and train
people for reemployment."

B. "China should build a domestic demand-driven consumer society"

Zheng Yongnian, head of the East Asian Institute of National
University of Singapore said in an interview with the official
Xinhua News Agency international news publication International
Herald Leader (Guoji Xianqu Daobao) (12/22): "The prospects of
China's export-oriented economy are gloomy. China's economy has been
serving the overseas market long enough and now it's time to serve
its own people. The only way out is to create a domestic
demand-driven consumer society. To maintain China's economic growth
there are two solutions. One is investment, the other is
consumerism. A consumer society needs a solid foundation such as
social insurance system, health care and education. Since China's
GDP growth has been very high in the last few years it is the best
time to set up a social insurance system and to build a consumer
society. Regarding the international environment, if China doesn't
become a consumer society, the international economic order will
never change. Social reform in China cannot be avoided."

2. CENTRAL ASIA

"What games are Americans playing in central Asia?"

The official daily newspaper of China's Communist Youth League Youth
Daily (Zhongguo Qingnianbao) (12/21): "It is nerve-wracking to think
that America will use a war to overcome the economic crisis.
Americans are using their military bases in central Asia to watch
all the countries there including China. In this region Americans
pay more attention to Russia and China. They have been trying to
launch long-range early-warning aircraft in this region. Although
the EU, NATO, Turkey and Iran are trying to expand their influence
in Central Asia, Central Asian countries' only motivation is
economic benefit. No matter how the situation changes in Central
Asia no single country can dominate this region. The door is open
to all. "

RANDT

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