VZCZCXRO6441
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #4290 3260907
ZNR UUUUU ZZH
R 210907Z NOV 08
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 0988
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI

UNCLAS BEIJING 004290 
 
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: FINANCIAL CRISIS, U.S. DIPLOMACY 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
¶1. FINANCIAL CRISIS 
 
"China prepares for the world's economic winter" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(11/21): "Recently, the Chinese Ministry of 
Human Resources and Social Security denied the rumor of massive 
lay-offs and migrant workers returning to their homes in order to 
strengthen the world's confidence in the Chinese economy. Under the 
current financial crisis, Chinese experts have disagreed with the 
pessimistic comments concerning the stability of Chinese society. 
These experts indicate that Chinese society is at its most powerful 
and rational time in history.  However, as the financial crisis 
intensifies, China's economy and the people's endurance are going to 
face challenges. Chinese experts indicate that financial crisis is 
also an opportunity for China.  The government should implement 
necessary reforms when the economy declines. It should further 
promote domestic consumption and privatization.  The crisis has also 
provided China a chance to rearrange foreign reserves, American 
debts, unpromising shares and assets. Some other experts have also 
expressed their confidence in China's economy." 
 
¶2. US DIPLOMACY 
 
a. "Obama leads the U.S. in a strategic pull-back, no more 
expansion" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(11/21): "The world Obama faces now is quite 
different from the world that Bush Jr. faced eight years ago. It is 
very likely that the Obama administration will be forced to conduct 
a strategic pull-back. The U.S. is entering the new period of 
strategic adjustment. First, the return to multilateralism; second, 
withdrawal from Iraq; third, improving the relationship with Iran 
and North Korea; fourth, reconsidering the deployment of missile 
defense systems in central Europe; Fifth, avoiding promoting the 
eastward expansion of NATO; and sixth, rebuilding the relationship 
with Russia." 
 
b. "'China hands' rise up in the U.S. political field" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(11/21): "In the East Asia affairs team in the 
US government, there is often competition between the group that 
knows China and the group that knows Japan. In the later part of the 
Bush administrating, more officials that know China well were used, 
like Thomas Christensen was appointed as deputy assistant secretary. 
He is treated as the symbol of the rise of the 'China Hands'. In the 
last two years, their voices have been increasing. People in the 
group are the ones who speak Chinese well, always coming and going 
between the US and China and have good personal relations in China. 
Besides, most of the officials that know China well are senior 
Democratic officials. The rising of these officials does not 
necessarily mean that the Obama administration is pro-China. It only 
represents the future possibilities of the U.S. misjudging China has 
greatly decreased. They are still interests-motivated. In this 
aspect, China is also in need of a group that knows the U.S." 
 
RANDT