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Cablegate: Media Reaction: Rmb Exchange Rate, Dalai Lama Meeting

VZCZCXRO0738
RR RUEHCN RUEHGH
DE RUEHBJ #0429/01 0540929
ZNR UUUUU ZZH
R 230929Z FEB 10
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 8209
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI

UNCLAS SECTION 01 OF 02 BEIJING 000429

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: RMB EXCHANGE RATE, DALAI LAMA MEETING

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Editorial Quotes
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1. RMB EXCHANGE RATE

a. "How to view China's decreased holding of U.S. Treasury bonds"

The China Radio International sponsored newspaper World News Journal
(Shijie Xinwenbao)(02/23)(pg 2): " Before the U.S. economy bottoms
out, any appreciation of the U.S. dollar is only temporary and is
manipulated. Under such circumstances, what the U.S. has gained by
financial means relying on its currency hegemony is due to other
countries' losses. This zero-sum game will only increase other
countries' dissatisfaction and speed up the decline of the U.S.
dollar. Before the U.S. dollar hegemony really begins to crack, like
it or not, other countries, including China, have to play the
financial game with the United States. China should be prepared for
the collapse of the U.S. dollar hegemony. Based on in-depth
research and predictions about the U.S. financial policy, between
the U.S. dollar, American bonds and other assets, China should
continue to buy low and sell high in order to minimize the cost of
China's holdings of U.S. assets."

b. "Exchange rate manipulator" becomes the United States' political
card"

The People's Daily-sponsored and internationally-focused commercial
news publication Global Times (Huanqiu Shibao)(02/23)(pg 8): "The
world's worries about the potential trade war between the world's
biggest exporting country and importing country are growing. Zhou
Shijian, senior researcher at Qinghua University, said that each
country will take measures to maintain the stability of the exchange
rate, even the U.S. Finance Department has an 'exchange rate
stabilization fund.' China should not be afraid of being given the
name 'exchange rate manipulator,' but should be vigilant about not
repeating the Japanese yen's mistake where it was forced to
appreciate. Japanese media said that the United States is the
biggest 'exchange rate manipulator.' The U.S.'s only excuse for RMB
appreciation is its trade deficit. However, when added to the
U.S.'s overseas investment and its trade exchanges with
multinational companies, the U.S. should be the country with the
biggest trade surplus in the world. In history, there were numerous
examples to show the U.S.'s manipulation of its exchange rate so as
to execute its financial hegemony. It is a frequent practice of the
U.S. to give the name of 'exchange rate manipulator' in order to
other countries to bolster its political goals. Facing the threat,
China should, on the one hand, let the Americans be aware of the
rationality of the current RMB exchange rate, and on the other hand,
speed up its economic transformation, expand domestic demand and
meanwhile prepare countermeasures."

c. "What does the U.S. want by playing the currency card?"

Guangdong 21st Century Publishing Company Ltd.'s business newspaper
21st Century Business Herald (21Shiji Jingji Baodao)(02/22)(pg 1):
"Knowing the RMB exchange rate will not solve the fiscal deficit of
the U.S., or the other economic problems of the U.S., why does the
U.S. still play the exchange rate card again and again? Answer,
because it has other ulterior motives. What does the U.S. want?
Answer, they want to use the RMB exchange rate as an excuse to
impose trade sanctions against China. This should not be the case
at all. Trade protection will only inhibit imports from China
rather than increase U.S. exports. Knocking the door open to the
Chinese market is more important to the U.S. Therefore, in the
future, the U.S. will use the exchange rate to extort China and make
a big fuss on China's market liberalization and industrial policy.
The RMB exchange rate reform has to adhere to the principle of being
independent, gradual and controllable, maintaining stable exchange
rates at a reasonable and balanced level. International pressures
will only add pressure and difficulties to the resumption of the
reform."

2. DALAI LAMA

"Does Obama really care about the Dalai Lama?"

The China Radio International sponsored newspaper World News Journal
(Shijie Xinwenbao)(02/23)(pg 2): "Wang Yusheng, the Executive
Director of China Foundation for International and Strategic
Studies, said that the Dalai Lama is merely a pawn of the United
States. Saying Obama's meeting with the Dalai Lama is based on
American values is both ignorant and arrogant. It is commonly
objected to use the name of human rights to take hegemony and
interfere in other country's internal affairs. It is just double
talk to say that the Dalai is a somewhat religious and cultural
leader. In fact, the American leaders know very well that he is
only a pawn for splitting China. Saying that U.S.-China relations
should be mature enough to withstand this test is a form of wishful

BEIJING 00000429 002 OF 002


thinking. Chinese leaders have made its stance clear that it firmly
opposes any state leader or officials meeting the Dalai Lama.
Didn't President Obama, as smart as he is, hear clearly? Aren't
American leaders and those who uphold American values supposed to
reflect about this?"

HUNTSMAN

© Scoop Media

 
 
 
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