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Cablegate: Media Reaction: Secdef Visit to China, Exchange Rate

VZCZCXRO1712
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #2895 2890905
ZNR UUUUU ZZH
R 160905Z OCT 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 6468
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI

UNCLAS BEIJING 002895

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 KMDR OPRC CH

SUBJECT: MEDIA REACTION: SECDEF VISIT TO CHINA, EXCHANGE RATE
MANIPULATION, CARBON TAX

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Editorial Quotes
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1. SECDEF VISIT TO CHINA

"U.S. Secretary of Defense will pay a quick visit to Asia-Pacific
region"

The official Communist Party international news publication Global
Times (Huanqiu Shibao)(10/16)(pg 8): "Experts said that the quick
visit of the U.S. Secretary of Defense to the Asia-Pacific region
and his quick return to the U.S. to meet with Xu Caihou, Vice
Chairman of China's Central Military Committee, show that the
Asia-Pacific region has become a focus of the United States' global
strategy. Military expert Dai Xu said he believes that Gates' visit
is not a routine official visit, but instead is intended to
emphasize the urgency of military affairs in the region. Dai argued
that Gates' visit is also related to recent changes in the East
Asian situation. Gates' visit will test the new Japanese
government's military and diplomatic red lines and make adjustment
to U.S. policy on Japan accordingly. The U.S. may send a warning to
Japan over its attempt to weaken the bilateral military alliance."

2. EXCHANGE RATE MANIPULATION

"Who is manipulating exchange rates?"

Guangdong 21st Century Publishing Company Ltd.'s business newspaper
21st Century Business Herald (21Shiji Jingji Baodao) (10/16)(pg 2):
"Since the U.S. dollar was first floated, its value has always been
decided by political and financial considerations. The United
States is in fact the real manipulator of exchange rates. Exchange
rates are now being used by governments to achieve political
purposes, and their function has gone far beyond regulating
international balance of payments. If the U.S. wants to challenge
China over currency manipulation, it needs to first explain why the
timing of the increases and decreases in the price of the U.S.
dollar has been so clever? After all, the U.S.'s key strategy is to
use yuan appreciation as a weapon to force China into making
concessions on the opening of its financial markets. A currency war
has already been started."

3. CARBON TAX

"Can China bear the burden of a carbon tax?"

The Shanghai-based Shanghai Media Group (SMG) publication, China
Business News (Diyi Caijing)(10/16)(pg A2): "The Ministry of Finance
of China indicated in a report that China's economic growth has
slowed down due to the impact of the international financial crisis
on China's macroeconomic situation, which will cause a delay in the
collection of a carbon tax. If a carbon tax is collected, the
worst-case GDP loss predicted will be less than 0.5%. It is thought
that the collection of a carbon tax will drive growth in the economy
of Eastern China, but in Central and Western China, where the
economy depends on high energy consumption but low efficiency in
production, the government should adopt different tax collection
policies. Cai Fang, Director of Population Studies at the China
Academy of Social Sciences, argued that the development of a
low-carbon economy is conditional. China's current GDP per capita
is low at USD 3,000. At the same time, China is in a stage of rapid
economic development. China currently does not have green
technologies. The implementation of emission reduction measures
will not automatically create jobs. If China wants to minimize job
losses and at the same time reduce emissions to enter the
'double-dividend club,' it needs to establish a mechanism to do so
and change the existing economic development model."


HUNTSMAN

© Scoop Media

 
 
 
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