VZCZCXRO5600
OO RUEHCN RUEHGH
DE RUEHBJ #0103 1441033
ZNY CCCCC ZZH
O 241033Z MAY 06
FM AMEMBASSY BEIJING
TO RUEKJCS/SECDEF WASHINGTON DC IMMEDIATE
RUEHC/SECSTATE WASHDC IMMEDIATE 6436
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RHHMUNA/HQ USPACOM HONOLULU HI
RUEHNO/USMISSION USNATO 0640
RHEHNSC/NSC WASHDC

C O N F I D E N T I A L BEIJING 010103 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 05/24/2016 
TAGS: PREL PARM PM CH
SUBJECT: PRC MFA ON DEFENSE DEPARTMENT REPORT ON CHINA 
 
REF: (A) STATE 82425 (B) BEIJING CH 10097 
 
Classified By: Political Minister Counselor Daniel Shields.  Reasons 1. 
4 (b) and (d) 
 
¶1.  (C) China is strongly dissatisfied with and 
opposed to the U.S. Defense Department's Annual Report 
to Congress on the Military Power of the People's 
Republic of China, which reflects "China Threat" and 
"Cold War" thinking, MFA North America Department 
Deputy Director General Xie Feng said.  Xie made these 
comments in response to Polmincouns' delivery of Ref A 
points on May 24.  Xie called the report an attack on 
China's "normal defense modernization" and said it 
represents interference in China's internal affairs. 
It violates international norms and the three Joint 
Communiques, he claimed.  It is contrary to the 
commitment by the leaders of the United States and 
China to build a constructive and cooperative 
relationship for the 21st Century, he said.  The 
report harms U.S.-China strategic trust.  It sends the 
wrong signals on Taiwan and emboldens Taiwan 
separatists.  The USG should stop issuing these 
reports, Xie stated. 
 
¶2.  (C) Polmincouns expressed disappointment over the 
PRC's unreasonable response to the USG report.  If 
Beijing has concerns about the report, it should 
respond with less rhetoric and with more accurate 
information.  The tone of the USG report is factual, 
descriptive and analytical.  It does not attempt to 
prove that China is or is not a threat, letting the 
facts speak for themselves.  China makes sovereign 
decisions as to what is appropriate for its own 
military expenditures.  The USG concern is the 
discrepancy between China's official military budget 
and its actual expenditures.  There is a lack of 
transparency regarding the connection between China's 
military expenditures and its strategic intentions, he 
emphasized. 
 
¶3.  (C) Ref B reports on USDAO Beijing's delivery of 
Ref A points to the Chinese Ministry of National 
Defense on May 24. 
 
RANDT