Cablegate: Media Reaction: Taiwan, U.S.-China Economic Relations, East

VZCZCXRO5950
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #3018 3060901
ZNR UUUUU ZZH
R 020901Z NOV 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 6672
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI

UNCLAS BEIJING 003018

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: TAIWAN, U.S.-CHINA ECONOMIC RELATIONS, EAST
ASIAN COMMUNITY

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Editorial Quotes
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1. TAIWAN

"Taiwan suspects U.S. arms sales tricks"

The official Xinhua News Agency international news publication
International Herald Leader (Guoji Xianqu Daobao)(11/02)(pg 3): "Hou
Xiaohe, an associate professor at China's National Defense
University, argued that in order to avoid angering the mainland over
arms sales to Taiwan, the United States is likely to discourage
Taiwan from buying U.S. arms by increasing its prices. This will
allow the U.S. to maintain room for maneuver and avoid violating the
so-called 'Taiwan Relations Act.' Several recent events have shown
that the U.S. is exercising restraint on arms sales to Taiwan. The
U.S. Congress, which is firm about arms sales to Taiwan, has changed
Item 1226 in the 2010 National Defense Authorization Act from
'compulsory' to 'advisory.' Without efforts on the part of the
Obama administration, the U.S. Congress would not make such a
change. Of course, the U.S.'s restraint is also related to pressure
from China."

2. U.S.-CHINA ECONOMIC RELATIONS

"'The big exchange': China is opening up its service sector and the
U.S. is opening up its investment sector"

The Shanghai-based Shanghai Media Group (SMG) publication, China
Business News (Diyi Caijing)(11/02)(pg A15): "It is noticeable that
while U.S.-China relations have on the surface entered a peaceful
period, there are strong currents underneath. This period is
particularly sensitive since both countries are redefining their
positions and testing each other's red lines. The opening of the
service sector [in China] could give U.S. companies a greater market
share and provide more jobs for Americans. Opening up investment in
the U.S. could also help Chinese companies increase their foreign
investment and transfer low-profit credit investment into
high-profit stock investment. The most interesting aspect of the
'big exchange' is that the opening of China's service sector is not
only what the U.S. wants but also what China's needs; and the
opening of the U.Q's investment sector is what China wants and also
what the U.S. needs."

3. EAST ASIAN COMMUNITY

"The East Asian Community needs to go beyond economic issues"

The Beijing-based newspaper sponsored by official intellectual
publication Guangming Daily and Guangdong Provincial official
publication Nanfang Daily The Beijing News (Xin Jing Bao)(11/02)(pg
B02): "The starting point for the East Asian Community is economic
cooperation, but the future focus will be security and political
cooperation. East Asian countries face the challenge of how to deal
with the U.S., since the U.S. is trying to maintain its supremacy
and prevent the appearance of any single superpower in the region.
East Asian countries should find more common ground and effective
mechanisms to solve problems, including land and religious disputes.
Only when geopolitical issues are solved, cQeconomic cooperation
in the region develop further."

HUNTSMAN

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