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INFO RUEHOO/CHINA POSTS COLLECTIVE
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UNCLAS SECTION 01 OF 02 BEIJING 000307 
 
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: ARMS SALES TO TAIWAN, RMB APPRECIATION 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
¶1. ARMS SALES TO TAIWAN 
 
a. "The United States threatens to be tougher on China" 
 
The People's Daily-sponsored and internationally-focused commercial 
news publication Global Times (Huanqiu Shibao)(02/05)(pg 1): 
"President Obama's remarks to be tougher on China on trade issues 
seems to have started a new battlefield with China, following 
Internet freedom, the RMB appreciation, arms sales to Taiwan and 
meeting the Dalai Lama.  A Chinese expert said that when the U.S. 
slaps China in the face one time, it is just like the U.S.; however 
when it makes slaps China's face four times, the U.S. is acting like 
an arrogant Saddam.  Reuters said that China's tough stance shows, 
along with China's growing economic strength, that it is more 
confident in its political power. However, almost none of the 
Western media reporters seem to understand or realize that China's 
hard-line stance is to defend its national interests, and that under 
the circumstances, China has no other choice.  Sun Zhe, the director 
of the Center for Sino-U.S. Relations Research at Tsinghua 
University, said that now Sino-U.S. relations seem to be in a 
head-lock.  Both the United States and China feel wrongly-treated 
and indignant.  As to the Google incident, Sun said that since 
Google still has economic interests in China it is unwilling to be 
the U.S. government's representative.  Now the U.S. has asked other 
multinational companies to take a stand; aimed at making a 
collective stand and increasing their pressure on China." 
 
b. "China hopes that the United States and China will work toether 
to safeguard China- U.S. relations" 
 
The official intellectual publication Guangming Daily (Guangming 
Ribao)(02/05)(pg 8): "Chinese Foreign Ministry Spokesperson Ma 
Zhaoxu said that the United States should 'take China's stance 
seriously and work with China on common goals.'  When asked whether 
China-U.S. tension peaked over the arms sale combined with Obama's 
possible future meeting with the Dalai Lama, Ma Zhaoxu stated, 'I 
want to reaffirm that sound China-U.S. relationship requires both 
nations' joint efforts. The key is respecting each other's core 
interests and concerns.'  Ma called on the United States to abide by 
the principles of the three joint communiqus and the recent 
agreement reached by the two presidents to safeguard the overall 
bilateral relationship. 
 
c. "Do not expect the U.S. to give up arms sales to Taiwan" 
 
The official Xinhua News Agency international news publication 
International Herald Leader (Guoji Xianqu Daobao)(02/04)(pg 3): 
"Chinese Rear Admiral Yang Yi said each  time that China protests, 
and each time the U.S. comes over to solve the dispute; the 
bilateral relations will be resumed.  However, this time is 
different.  China needs to punish the U.S.  China will adopt 
further, updated and more effective countermeasures so that the U.S. 
can feel the pain.  Ge Laiyi, senior researcher at the Center for 
American Strategy and International Strategy Studies, said that it 
is still unclear what China's red line on arms sales to Taiwan is. 
Some American aviation companies have become concerned about China's 
sanctioning measures; announcing that they are trying to stay 
outside the issue of Sino-U.S. relations.  Mr. Ge also said it is 
impossible for China's countermeasures to stop the U.S. arms sales 
to Taiwan.  Meng Xiangqing, professor of the Institute of Strategic 
Studies at China's National Defense University, said that China 
should give the United States a timetable for the cessation of their 
arms sales to Taiwan.  The United States should make clear when they 
plan to finally stop selling arms to Taiwan.  In ten years time, 
when China's national defense strength is enhanced and matches that 
of the U.S., then China could have the ability to have a showdown 
with the U.S. over this issue." 
 
¶2. RMB APPRECIATION 
 
"Obama's 'GDP variation point'" 
 
Guangdong 21st Century Publishing Company Ltd.'s business newspaper 
21st Century Business Herald (21Shiji Jingji Baodao)(02/05)(pg 2): 
"Arms sales to Taiwan, standing ready to meet the separatist, as 
well as threatening to put pressure on the RMB exchange rate; all 
these actions seem to show that Obama has changed his 'moderate 
image' overnight.  Obama's attitude appears to have made an obvious 
turnaround just as his GDP variation point.  Because the U.S.'s GDP 
has had rapid and successive growth for the last two quarters, Obama 
has changed his previous mediator-like ways.  His continuously 
falling public support rating has made him search for a point of 
focus that would allow him to win back public support and attention. 
The RMB appreciation topic rises to that occasion.  Obama will need 
the RMB appreciation issue to offset the increase of China's 
 
BEIJING 00000307  002 OF 002 
 
 
imports; otherwise he will not complete the White House's 'ten-year 
moderate growth plan' and 'unemployment control.'  Obama does not 
care very much about whether or not the Chinese will continue hold 
U.S. debt.  The depreciation of the dollar is a long-term trend.  We 
must be aware that the future trends and development of the 
Sino-U.S. economic relationship will be the real variable in the 
RMB's exchange rate." 
 
HUNTSMAN