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Viewing cable 09BEIJING2361, MEDIA REACTION: WTO RULING, U.S. "RETURNS TO ASIA," CHINA'S

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Reference ID Created Released Classification Origin
09BEIJING2361 2009-08-14 08:51 2011-08-23 00:00 UNCLASSIFIED Embassy Beijing
VZCZCXRO2409
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #2361 2260851
ZNR UUUUU ZZH
R 140851Z AUG 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 5670
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI
UNCLAS BEIJING 002361 
 
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 KMDR OPRC CH
 
SUBJECT: MEDIA REACTION: WTO RULING, U.S. "RETURNS TO ASIA," CHINA'S 
LIQUIDITY WORRIES 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
1.  WTO RULING 
 
"WTO ruling will spur improvement of China's audio-visual industry" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao) (08/14): "If the World Trade Organization 
ruling is effective, American audio-visual products, primarily 
Hollywood films, will have more avenues to penetrate the Chinese 
market at a lower cost.  In recent years, American audio-visual 
products have spread around world and threatened the 'cultural 
industry' in many countries.  This ruling has sounded an alarm in 
China's cultural industry.  In the context of globalization, it 
seems that we have only one choice: to make ourselves better and 
stronger.  In the end, China's influence in the world will be 
determined by the number of people who are watching Chinese movies, 
listening to Chinese music, and reading Chinese books." 
 
"WTO decision will cause a chain reaction" 
 
Guangdong 21st Century Publishing Company's business newspaper 21st 
Century Business Herald (21 Shiji Jingji Baodao) (08/14): "China may 
appeal a ruling by the World Trade Organization supporting a U.S. 
complaint against the country's regulations on imported books, 
films, and music.  Zhang Jianxin, the Dean of the International 
Relations and Public Affairs Institute at Fudan University, said he 
is not optimistic that the appeal will succeed.  China does not need 
to regard this ruling as a big threat.  He argued that the WTO's 
decision will help China protect intellectual property rights by 
causing China to pass additional laws on IPR protection.  The ruling 
will also inspire China's cultural industry to improve the quality 
of its products.  From a long-term perspective, the benefits of this 
ruling will outweigh the drawbacks." 
 
2.  U.S. "RETURNS TO ASIA" 
 
"U.S. returns to Asia to contain China" 
 
The China Radio International sponsored newspaper World News Journal 
(Shijie Xinwenbao) (08/14): "The reasons the U.S. has returned to 
Asia are to prevent China from becoming the major power in the 
region, to put more pressure on Myanmar through deeper involvement 
in ASEAN affairs, and to prevent North Korea from developing allies 
in the region.  The U.S.'s sudden interest in Southeast Asia is due 
to the fact that it believes there is an opportunity to take 
advantage of the differences between China and some ASEAN countries 
over the South China Sea issue.  The U.S. thinks these ASEAN 
countries might want to leverage U.S. power in the region to 
counter-balance China.  The U.S. wants to manipulate the struggle 
between China and ASEAN countries to weaken China and hinder its 
development." 
 
3.  CHINA'S LIQUIDITY WORRIES 
 
"The era of the U.S. injecting liquidity into China has come to an 
end" 
 
Guangdong 21st Century Publishing Company Ltd.'s business newspaper 
21st Century Business Herald (21 Shiji Jingji Baodao) (08/14): "A 
Chinese expert said China's $2 trillion foreign exchange reserves 
are equal to the liquidity the U.S. has injected into China.  This 
liquidity has developed private sector and export companies in China 
and increased the efficiency of the Chinese economy.  However, 
China's concern over a possible liquidity crisis caused by 
improvements in the U.S. economy has triggered sharp fluctuations in 
the capital market.  Signs of economic recovery in the U.S. have had 
a mixed impact on China.  On the one hand, China's exports to the 
U.S. are expected to pick up as growth in U.S. imports resumes.  On 
the other hand, the value of the U.S. dollar may rise, causing a 
flight in the capital that has propped up asset prices in emerging 
markets.  The tightening and loosening in liquidity is like a 
'double-edged sword,' which puzzles both China and the U.S., the 
world's two most important economies across the Pacific." 
 
 
GOLDBERG