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Cablegate: Media Reaction: U.S.-China Relations, China Policy

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FM AMEMBASSY BEIJING
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UNCLAS SECTION 01 OF 02 BEIJING 000043

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 SENV KGHG KMDR OPRC CH

SUBJECT: MEDIA REACTION: U.S.-CHINA RELATIONS, CHINA POLICY

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Editorial Quotes
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1. U.S.-CHINA RELATIONS

"U.S. - China strategic partnership irreversible and increased
differences inevitable"

The official Communist Youth League China Youth Daily (Zhongguo
Qingnianbao)(01/11)(pg 5): "Since the beginning of 2010 U.S.-China
relations have, just like the weather in the Northern hemisphere,
been rapidly cooling off. The trade protectionist barrier that the
U.S. built and their arms sales to Taiwan have both aroused the
strong dissatisfaction of the Chinese people and government.
Recently many American media and think tanks have become concerned
about Sino-U.S. relations in the coming year. However, more
insightful American intellectuals believe that the divergences and
contradictions between the two countries won't influence the general
trend of the two country's strategic cooperation. Li Cheng, the
Director of the National Committee on U.S.-China Relations at the
Brookings Institute, said that there is little basis for recent
predictions by U.S. media and think tanks that U.S.- China relations
will deteriorate. The overall Sino-U.S. relations situation is: the
degree of interdependence between the two countries is so high, and
the scope of exchanges so wide that the two countries must, and can,
work together to resolve their problems. The pessimistic
predictions about Sino-U.S. relations will only negatively influence
the two people. Therefore the two countries should encourage and
lead their people in having constructive discussions while,
meanwhile, making an effort to prevent nationalism and protectionism
from getting in the way of their respective foreign policies."

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2. CHINA POLICY

a. "China in the eyes of the world: five myths and their
genealogies"

The Shanghai-based Shanghai Media Group (SMG) publication, China
Business News (Diyi Caijing)(01/11)(pg A6): " It is easy for people
to believe certain theories about things they do not understand and
cannot avoid. China's rise in national strength and international
status is such a reality shrouded by myth. The world is often
distracted and confused by these myths. There are five myths about
China: first, the China-threat theory - taking China as imaginary
enemy in order to extend their hostility against socialist countries
during the Cold War and looking for excuses for the increased U.S.
military presence in Asia. Such 'threats' are in fact the
international order defined by the one-sided wish of the U.S. and
its allies. China should focus on building a transparent, open and
constructive international image that helps remove the world's
speculations about China's threat. Second,
China-triggers-resources-crisis theory - it is unfair to use the
excuse of limited natural resources to restrict developing
countries' development. China should present the world with more
examples of its contributions to efficiently consuming resources and
its efforts in promoting sustainable development. Third, the
China-collapse theory - the best response to this theory is China's
sustained economic development and social stabilities; fourth,
China's-responsibility theory - it is in fact a theory that appears
to be kind on the outside but one which has careful calculations in
its core. With the precondition of China's independence, what kinds
of international responsibilities should China take on that would
not be regulated or dominated by certain countries, but which could
be shared through equal negotiations among all countries? Finally,
Chinese-model theory - China should make unremitting efforts to
explore its own road to bring peace and prosperity to its people.
China does not pursue any kind of good-looking 'China model' but
rather the 'China experience' which is able to solve its own
problems."

3. FINANCIAL CRISIS

b. "'Rescue' the United States or balance the economy?"

The independent Chinese weekly business newspaper distributed in
major cities throughout China, Economic Observer (Jingji
Guanchabao)(01/11)(pg 42): " Unless the power which represents the
rural and grassroots interests of China replaces the coastal urban
elites and becomes the dominant force, China will continue to
represent the Asian exporting countries which maintain the vitality
of the U.S. economy. Meanwhile, the U.S. government hopes to win
precious time by investing in the green economy and taking a leading
role in the international economy's newly-emerging industries. In
this way, the U.S. will be able to deal with the current global
economic crisis and the decline of American power. This is also the
Obama administration's long-term plan. The U.S. consumer market on
which China relies is collapsing. The U.S. treasury bonds which
China has to buy in large quantities are risky. If China transforms

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its development model and balances the domestic demand and exports,
it can not only get rid of this dependence, but also help producers
of other Asian countries and regions get rid of their risk. More
importantly, if other developing countries can carry out a similar
transformation and strengthen trade relations among developing
countries, they can be each other's consumers, which will bring the
developing world independent and balanced economic growth, thereby
creating a new era. The Chinese Government's priority is that it
should transform the self-confidence away from economic recovery and
into a kind of courage, to dare to disregard the obstacles imposed
by those interest groups who uphold the current imbalanced growth
patterns and to promote the redistribution of wealth, which has long
been delayed, to increase the individuals' income and their
consuming capability."

HUNTSMAN

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