Cablegate: Media Reaction: Iran, East Asia, China Trade Policy
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #2792 2720844
ZNR UUUUU ZZH
R 290844Z SEP 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 6275
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI
UNCLAS BEIJING 002792
DEPARTMENT FOR INR/R/MR, EAP/CM, EAP/PA, EAP/PD, C
HQ PACOM FOR PUBLIC DIPLOMACY ADVISOR (J007)
E.O. 12958: N/A
TAGS: PREL ECON KMDR OPRC CH
SUBJECT: MEDIA REACTION: IRAN, EAST ASIA, CHINA TRADE POLICY
"China could take more initiative on the Iran issue"
The official Communist Party international news publication Global
Times (Huanqiu Shibao)(09/29)(pg 14): "In the past, China could,
together with Russia, oppose U.S., UK, and French proposals on Iran.
However, now that the U.S. has traded its deployment of a missile
defense system in Eastern Europe for Russia's acceptance of the
West's proposal, China is in the embarrassing situation of having to
choose sides in the confrontation between Iran and the West. China,
as a leader among developing countries, cannot just follow the West,
nor will it support separatists in Iran, North Korea, or Burma.
China should consider a third possibility: submitting its own
proposal to the UN Security Council to mediate the conflict between
the two sides and provide a platform for dialogue and negotiation.
In this way, China will prove it is a responsible power, avoid
having to choose sides, and potentially emerge as a winner in global
2. EAST ASIA
"Relations between China, Japan, and the U.S. and the proposal for
an 'East Asian community'"
The China Radio International sponsored newspaper World News Journal
(Shijie Xinwenbao)(09/29)(pg 24): "The U.S.'s objection to Japan's
bid to host the next G20 summit is meant to teach a lesson to Japan
after it called for an 'East Asian community.' The U.S. is
extremely vigilant about such an 'East Asian community' because the
U.S. lacks confidence in itself. On the G20 summit, the intensified
battle between the U.S. and the EU over the future of the dollar and
the euro has made East Asia the most important region for both
sides, since China and Japan, the two big countries in the region,
will play a crucial role in this respect. When China is vague on
disputes between the U.S. and the EU, the U.S. has to rely primarily
on Japan's loyalty. There has been a rule governing relations
between China, the U.S., and Japan over the last few decades: when
China-U.S. relations are good, China-Japan relations suffer, and
vice versa. This is the first time ever that both relationships are
in good shape, which indicates that something new is happening
between East Asia and the U.S. How far Japan will go on its 'East
Asian community' proposal still depends on the U.S.'s position on
3. CHINA TRADE POLICY
"China needs to implement 'credible threats'"
Guangdong 21st Century Publishing Company Ltd.'s business newspaper
21st Century Business Herald (21Shiji Jingji Baodao)(09/29)(pg 2):
"Recent trade conflicts, such as increased U.S. tariffs on imported
Chinese tires and the EU's anti-dumping duties on Chinese seamless
steel pipes, have highlighted China's lack of strategic responses
for dealing with trade disputes. Export-oriented companies in China
enjoy favorable policies since the country relies on exports to
increase its foreign exchange reserves. These companies usually
lower their prices to undercut competitors. However, lower prices
affect importing countries and, ultimately, lead to protectionism.
If China cannot change this dynamic relatively soon it will face
more trouble in the future. China cannot fully rely on WTO rules.
The anti-dumping investigation on U.S. poultry products is in fact
the appropriate way to react. Experience has shown that
implementing a credible threat will have a positive impact and
eliminate protectionism early on."