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Viewing cable 09BEIJING1294, MEDIA REACTION: TAIWAN, CHINESE ECONOMY, GEITHNER'S VISIT,

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Reference ID Created Released Classification Origin
09BEIJING1294 2009-05-14 08:34 2011-08-23 00:00 UNCLASSIFIED Embassy Beijing
VZCZCXRO4051
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #1294/01 1340834
ZNR UUUUU ZZH
R 140834Z MAY 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 3975
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI
UNCLAS SECTION 01 OF 02 BEIJING 001294 
 
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 PREL ECON
 
SUBJECT: MEDIA REACTION: TAIWAN, CHINESE ECONOMY, GEITHNER'S VISIT, 
WESTERN CRITICISM ON CHINA 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
1. TAIWAN 
 
"Time the U.S. eschewed its faulty Taiwan policy" 
 
The official English-language newspaper China Daily (05/14): "Some 
scholars credit the TRA for the positive developments in Sino-U.S. 
and cross-Straits ties. This is ridiculous, coming as it does on the 
30th anniversary of the U.S. Congress passing a controversial bill. 
Washington's Taiwan Relations Act (TRA) has been the biggest hurdle 
in deepening the U.S.-Sino ties. The TRA says that the U.S. would 
fulfill its 'security commitment' made to the island in case of 
emergency. The TRA was a big step backward for the U.S. from its 
decision to normalize ties with the PRC. In passing the bill, the 
U.S. not only interfered with China's internal affairs but also 
infringed upon its sovereignty. Sino-U.S. ties have no doubt moved 
forward, but strategic misgivings still exist between the two sides. 
Washington is worried that Beijing could pose a threat to its 
dominant role in East Asia, and the world beyond, if it becomes more 
powerful. And the existence of the TRA makes Beijing justifiably 
fear Washington would play the Taiwan card to check its development. 
The TRA has long been an obstacle in Sino-U.S. ties, and it's time 
it was given its long due burial so that bilateral relations can be 
taken to a higher level." 
 
2. CHINESE ECONOMY 
 
"Chinese model and the doctrine of mean" 
 
The official English-language newspaper China Daily (05/14): "As the 
economic crisis batters the world, many experts have started to 
debate economic models. First, the Chinese economy seems to be more 
robust than others despite the financial tsunami. Second, the means 
used by China to fight the crisis have generated curiosity. Though 
the Chinese government's approach seems to have no substantial 
difference that those of others, it has been more effective till now 
than the way chose by western governments. Third, people are 
forecasting the role of China in the future global economic order. 
China's capacity to cushion the impact of the crisis, its means to 
recharge the economy and its role in recharging the new global 
economic order are closely related to the economic model China has 
followed for the past three decades. That's why so many people are 
interested in the Chinese model. Many developing countries want to 
learn from China, while the developed ones worry that the Chinese 
model could become the alternative one to that of the west. I think 
the Chinese model is a composite or mixed economic system. Its 
features include a mixture of ownerships, a combination of foreign 
and domestic demands, and the balance between the State and the 
market. The Chinese economic model combines the forces of the State 
and the market both. Before the reform and opening up, China used to 
be a planned economy where the State was omnipresent. The financial 
sector is an example of how China has maintained a balance between 
the State and the market.But despite its merits, the Chinese model 
has its faults, especially in its threadbare social safety net, 
which requires painstaking work to build. China needs to learn a 
lesson from the global financial crisis, and continue to improve its 
model by following the doctrine of mean." 
 
3. GEITHNER'S VISIT 
 
"The U.S. Treasury Secretary is coming to China to test the 
situation" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(05/14): "Although the U.S. was the first 
country to transfer the H1N1 virus to China, the officials will not 
wear masks when they meet new Treasury Secretary Geithner.  Geithner 
is the second senior official of the Obama administration, after 
Hillary Clinton, to visit China.  At the beginning of the year, he 
criticized China for manipulating their exchange rate.  However, in 
the last few months his attitude has mellowed.  China being 
Geithner's first stop makes Japan jealous.  It is expected that 
Geithner will pressure China during the visit.  Chinese experts have 
stated that China should establish rules when dealing with Geithner. 
For some of the selfish requests of the U.S., China should 
confidently turn them down.  Geithner's visit to China has worried 
Japan.  A Chinese professor indicated that Geithner may bring up 
purchasing American bonds, but as Treasury Secretary, he may not 
mention human rights issues.  The interests of the U.S. and China 
are closely connected.  Any help exchanged between the two should 
not be one-sided.  Chinese experts indicate that China should take 
the chance to inform the Secretary that China's economic situation 
is not as good as it looks.  'An old fox' could describe Paulson, 
and a 'little mule' could describe Geithner. China should mention 
the RMB issue even before Geithner mentions it, asking him if any 
 
BEIJING 00001294  002 OF 002 
 
 
currency is able to continuously rise and never fall.  China's 
foreign trade system can't sustain itself if the RMB continues to 
appreciate." 
 
3. WESTERN CRITICISM ON CHINA 
 
"Western media is polite to China" 
 
The official Xinhua News Agency international news publication 
International Herald Leader (Guoji Xianqu Daobao)(05/14): "This 
year, China is realizing that the Western media is criticizing China 
less often.  The west is calming concerning China's issues.  The 
Chinese government has become more open and confident in leading 
international opinion and dealing with the western media. Chinese 
officials have changed their concepts concerning silence.  They have 
begun to take initiative to explain China to the world positively 
guiding international opinion.  The President of People's Bank of 
China, Zhou Xiaochun, once brought forward the idea of a 
'super-sovereign currency' on the internet.  It is a rarely-seen 
move by the Chinese government to take initiative and establish the 
global public agenda.  China should realize that improving China's 
image is still a long way away." 
 
WASHINGTON