VZCZCXRO2270
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #0197/01 0220851
ZNR UUUUU ZZH
R 220851Z JAN 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 1980
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI

UNCLAS SECTION 01 OF 02 BEIJING 000197 
 
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: INAUGURATION, U.S. - CHINA MILITARY 
RELATIONS, FINANCIAL CRISIS 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
¶1. INAUGURATION 
 
"The World expects changes in the U.S." 
 
The official intellectual publication Guangming Daily (Guangming 
Ribao)(01/22): "The American media indicates that there has never 
been a president like Obama who has gained the expectations of the 
entire world. The world is expecting many changes in U.S. foreign 
policy. Internationally, people believe that 'pride and prejudice' 
are deep rooted sicknesses in the U.S. In various international 
affairs, Washington has found it difficult to rid itself of the 
influence of these ills. The world needs Obama to change the U.S.' 
psychology; that they are always being the 'first' in the world. 
Obama should make use of this chance and redefine the U.S. 
'democracy' in order to exchange opinions with his opponents and 
partners on an equal level. The world's people expect that Obama 
will be courageous in finding new paths and perspectives to deal 
with international affairs. Even if Obama is unable to change the 
U.S., at least he has the opportunity to use some restraint. People 
should not have too high expectations from the U.S. since Obama will 
not change the U.S.' life style, and nor will he change their 
ideology." 
 
¶2. U.S.-CHINA MILITARY RELATIONS 
 
"The U.S. should lead in breaking the impasse between the U.S.-China 
military relations" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(01/22): "The U.S.-China military relations 
are certainly having difficulties. The Bush administration's 
decision to sell a large amount of weapons to Taiwan in October 
2008, has caused the U.S.-China military relationship to fall into 
the bottom of a deep valley once again. Because the U.S. started 
this conflict, they should take actual actions to change the 
situation. U.S.-China military relations are lag far behind the 
U.S.-China general relationship because of the contradictory U.S. 
policy on China. The U.S., on the one hand, needs China's 
cooperation on international and regional issues, anQn the other 
hand, it never gives up its strategic restrictions on China, or its 
military vigilance. On the Taiwan issue, China will not make a deal 
with the U.S. If the U.S. continues to conduct two-handed policies 
on the Taiwan issue, the U.S.-China military relations will not 
smoothly develop." 
 
¶3. FINANCIAL CRISIS 
 
a. "Logic of blaming China for U.S. crisis is bizarre" 
 
The official English-language newspaper China Daily (01/22): "No 
country, including fast-growing China, has been immune to the 
financial woes. Global efforts are being mobilized to tackle the 
unprecedented financial tsunami. But former U.S. treasury secretary 
Henry Paulson recently blamed China and other countries ...Federal 
Reserve Chairman Ben Bernanke even claimed that such a high savings 
rate in foreign countries, in China in particular, had induced the 
bubble in the U.S. real estate industry to bulge. Such groundless 
criticisms from high-ranking U.S. officials are extremely 
detrimental to the current worldwide battle against the crisis. 
...The country is still in the process of profound industrial and 
economic structural adjustments. It is still financially unable to 
set up a social security system that covers all of its population. 
...a certain period of time is still needed to help the country 
realize a savings-to-consumption transformation. ...Also, fruitful 
cooperation between China and the U.S. since normalization of their 
diplomatic ties has brought huge benefits to the peoples of the two 
countries. ...It is obvious that Paulson's conclusion that China's 
high savings rate has hampered American people's consumption and 
triggered the financial crisis is contrary to reason. ...It is 
unrealistic to expect that the Chinese people, even after they get 
rich, will buy U.S. properties and financial derivatives to prop up 
the bubbles in its two sectors. American people's long-used model of 
overspending, the country's ill-conceived financial oversight system 
and its poor performance are the real causes behind the financial 
crisis." 
 
b. "It is respectful, that China intends to maintain its 8% growth 
rate" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(01/22): "In order to deal with the 
international financial crisis, China has determined to keep its 8% 
growth rate in 2009. However, the western media is being sarcastic 
about China's determination. They are enjoying the benefit of 
 
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China's development on the one hand, and on the other hand trying to 
influence China's politics by misusing the issue of 8% growth rate. 
They are not increasing global confidence; they are destroying it. 
Western media believes that China's rapid growth is largely related 
to large quantities of exports; China's economy will slow down due 
to the decreased demand of Chinese products. Such belief is 
reasonable in some way, but this reflects the Western media's 
underestimation of China's ability to deal with this crisis. Western 
countries' ignoring China's development, and slandering China's 
achievements on purpose, will lead to their own lagging behind." 
 
PICCUTA