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Viewing cable 09BEIJING764, MEDIA REACTION: CHINESE MILITARY, FINANCIAL CRISIS, U.S.

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Reference ID Created Released Classification Origin
09BEIJING764 2009-03-24 09:20 2011-08-23 00:00 UNCLASSIFIED Embassy Beijing
VZCZCXRO7927
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #0764 0830920
ZNR UUUUU ZZH
R 240920Z MAR 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 3043
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI
UNCLAS BEIJING 000764 
 
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: CHINESE MILITARY, FINANCIAL CRISIS, U.S. 
POLITICS 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
1. CHINESE MILITARY 
 
"China's naval strategy needs an adjustment" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(03/24): "For the past month China's water 
territory has been frequently disturbed. The U.S. Navy's Impeccable 
invaded the South China Sea to conduct illegal activities. 2009 is 
the year that the world's water territory will be redefined. Many 
conflicts can be expected in this rearrangement.  Therefore, all the 
countries around the world are searching for legal loop holes and 
space where they can reoccupy their own water territory. The 
neighboring countries of China intend to legitimize their occupation 
of China's water territory: both Japan and the Philippines intend to 
pull the U.S. over to interfere in the Diaoyu Island and Nansha 
Islands issue. China should be firm in that their sovereignty rights 
are the bottom line. China has a 3 million square km water 
territory. China should establish a specific 'China sea territory 
bureau' to prevent the area from being seriously invaded. Although 
the Mainland and Taiwan have disputes, the two should join together 
to defend China's water territory. China should also increase its 
efforts in resources exploration and development. Along with China's 
development, trade at sea and their marine channels are closely 
related with China's strategy." 
 
2. FINANCIAL CRISIS 
 
a. "The Rise of Wall Street has not changed" 
 
21 Century Business Herald (21Shiji Jingji Baodao) under Guangdong 
21 century publishing company Ltd. (03/24): "Injecting public funds 
into Wall Street hasn't brought any power over Wall Street to the 
U.S. public and government.   The public and government should have 
the right to distribute Wall Street profits.  This is a question of 
the balance between public investment and return.  In the case of 
AIG bonuses, their power has not been realized.  Either the U.S. 
government should allow Wall Street to go bankrupt, as a message 
sent from the House of Representatives, or the public, government 
and congress should come to terms with the fact that Wall Street 
isn't what it used to be.  It will take great patience to see 
whether the money will rebound and the government will be paid back 
in five to ten years." 
 
b. "Last resort increases economic jitters" 
 
The official English-language newspaper China Daily (03/24): "A 
patient whose life hangs by a thread might be treated with heavy 
doses of medication.  The U.S. Federal reserve has resorted to this 
treatment to address the country's recession.   In a last resort the 
FED will print new money to the tune of U.S. $ 1 trillion.  There is 
a clear cost to massive quantitative easing.  If another trillion 
dollars is pumped into the money supply, the value of the dollar 
will fall.   A lower U.S. dollar will make China's exports, which 
have already been shrinking, less competitive.  China is the world's 
largest foreign holder of U.S. Treasuries.  The U.S. dollar is 
strong and the U.S. economy - especially it's manufacturing and 
advanced service sectors - are the largest and most sophisticated in 
the world.  Thanks to a combination of a strong taxation system and 
the role of the FED as the U.S.' last resort dollar lender, the U.S. 
government will always honor its debt commitments." 
 
3. U.S. POLITICS 
 
"American's doubts about Obama increase" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(03/24): "Currently, there are a lot of issues 
that are interconnected.  This is challenging for the Obama 
administration. Obama was elected during the financial crisis. 
However, the complexity of the U.S. economic crisis and the politics 
that surround it has outpaced Obama's ambition. The high rate of 
support that Obama receives burdens him. Obama's leadership faces a 
challenge.  During this financial crisis, tough determination is 
required. Obama should be united with his allies and reform in a way 
that will meet more of the people's interests." 
 
PICCUTA