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Viewing cable 08BEIJING4478, MEDIA REACTION: U.S.-CHINA RELATIONS, FINANCIAL CRISIS

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Reference ID Created Released Classification Origin
08BEIJING4478 2008-12-09 09:10 2011-08-23 00:00 UNCLASSIFIED Embassy Beijing
VZCZCXRO1714
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #4478 3440910
ZNR UUUUU ZZH
R 090910Z DEC 08
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 1288
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI
UNCLAS BEIJING 004478 
 
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: OPRC KMDR CH
 
SUBJECT: MEDIA REACTION: U.S.-CHINA RELATIONS, FINANCIAL CRISIS 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
1. U.S.-CHINA RELATIONS 
 
"Obama can gain much from friendly China ties" 
 
The official English-language newspaper China Daily (12/09): "In the 
past, it was common for a new U.S. president to go for a 
confrontation with China early in his tenure and then pursue 
reconciliation and cooperation as time went by. To create favorable 
domestic opinion, some newly elected U.S. leaders have signaled out 
China for verbal attacks. It was labeled as Washington's strategic 
competitor or as a threat....However, in the current situation, 
there is no reason for Obama's new administration to take a 
confrontationist attitude towards China...In laying out its foreign 
policy towards China, Obama's administration should not ignore that 
the two countries are enjoying an ever-deepening interdependence." 
 
2. FINANCIAL CRISIS 
 
a. "Not just one percent" 
 
The official Communist Party People's Daily (Renmin Ribao)(12/09): 
"Premiere Wen Jiabao indicated earlier that, due to the economic 
difficulties, confidence is more valuable than gold and currency. 
When it is dealing with the international financial crisis, China 
has been issuing a firm and clear voice to the World. Not long 
before the Chinese government issued a 4 trillion y. economic 
stimulus plan, the Wall Street Journal doubted the effect of China's 
plan because only one percent will be used on social services. The 
primary thing for saving the economy during the crisis is resuming 
confidence. Therefore infrastructure investments, which can make big 
effects in a short time, are necessary in the stimulus plan. 
Different from Western countries' rescue plans, which are pointed at 
banks and financial institutes, China's plan is concerned more about 
the ordinary people's benefit. During the financial crisis, the 
Chinese government took actions to deal with the financial crisis, 
which have been more effective than the actions taken by the 
developed countries. China's plan has played an active role in 
increasing the confidence of the market." 
 
b. "To use China's money as deploying soldiers" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(12/09): "Recently, the American financial 
crisis has aroused two questions in China. First, should China save 
the U.S.? Second, China has decided to urgently invest 4 trillion y. 
within the next two years.  Strategic consideration is required to 
allocate this amount of national fortune, where should the Chinese 
invest this money? A large amount of foreign exchanges should 
primarily serve China's modernization construction, secondly improve 
the people's benefit guarantee and thirdly, protect the national 
industries. How to use foreign exchanges is a national strategic 
issue. Take the U.S. as an example, the U.S. uses a warlike 
decision-making system to decide the 700 billion dollar's rescue 
plan. Isn't China supposed to decide whether or not to buy American 
debts through National People's conference or political consultative 
conference? China should not only use modern war theory on military, 
but also emphasize strategic economic theory on the economy." 
 
c. "The U.S. will definitely fall if it can't grasp its resources" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(12/09): "The current U.S. financial crisis is 
mainly a crisis of resources. Looking at the control of global 
resources, the U.S. decline is all around. This will definitely lead 
to a major change in the set up of the world. First of all, the U.S. 
is depending on military power to control the world's resources. The 
withdrawal of troops from Iraq may lead the U.S. far from the 
world's oil center and thus lose control of the invisible rule; that 
oil purchases are settled with U.S. dollars. Meanwhile, the U.S. is 
losing an advantageous position in political resources.  Thirdly, 
the U.S. strategic national resources have been seriously dropping. 
...The U.S. has been away from the real economy for a long time. 
Once the confidence in investments is lost, the decline in the U.S. 
will be inevitable. However, people should not exaggerate the degree 
of the U.S. decline. A complete collapse of the U.S. economy is 
impossible." 
 
PICCUTA