VZCZCXRO8235
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #0970/01 1030919
ZNR UUUUU ZZH
R 130919Z APR 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 3400
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI

UNCLAS SECTION 01 OF 02 BEIJING 000970 
 
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 PREL ECON
 
SUBJECT: MEDIA REACTION: U.S. Policy, ASEAN Summit & Protests in 
Pattaya, Chinese Spying 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
¶1. U.S. POLICY 
 
"For the first time, the U.S. simulates an Economic World War" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(04/13):  The Pentagon simulated a military 
drill on the theme of economic security. Many economic experts were 
involved in this drill.  This simulation was planned before last 
September when the financial crisis broke out.  The results of the 
simulation showed that, in the event of an economic war, America's 
power would be seriously weakened while China's power would be 
strengthened.  A Chinese expert said, "Nobody in China wants to have 
an Economic War with the U.S.   However, the American military is 
simulating this war.  They are too aggressive."  Niu Xinchun, from 
the China Institute of Contemporary International Relations, told 
Global Times on 12th that the major global countries are worried 
about an economic war.  China and the U.S. are afraid of each other 
and they are in a "terrible balancing" situation.  China and the 
U.S. are closely dependent on each other in the economic field.  The 
Pentagon's simulation reflects the concerns of some Americans 
concerning the U.S-China bilateral economic ties. 
 
Niu thinks that the results of this simulation are not that 
convincing, suggesting that it is impossible that China would be the 
winner in an economic war.  The U.S. and Russia are important trade 
partners for China and exporting is the key element of the Chinese 
economy.  If both America's and Russia's economy encounter troubles, 
China's economy will definitely be influenced.  This simulation also 
indicates that overall the American national security policies are 
obviously leaning towards an economic tilt. 
 
¶2. ASEAN SUMMIT & PROTESTS IN PATTAYA 
 
a. "The multiple reprises [objectives] of Asia" 
 
The official Xinhua News Agency international news publication 
International Herald Leader (Guoji Xianqu Daobao) (04/13): 
Unfortunately, because of Thailand's domestic issue the reprises 
[objectives] of the city of Pattaya are postponed. The ASEAN 10+3 
summit was considered an important meeting for Asian countries to 
jointly self-rescue their economy and rescue others as well.  The 
opportunity to boost confidence in the Asian economy has been lost. 
Fortunately, this opportunity is only delayed and not canceled. The 
postponement of this summit has nothing to do with regional 
financial integration. The financial crisis has actually pushed the 
process of regional financial integration forward.  The current 
global crisis may bring yet another opportunity.  As an area whose 
economy has developed the fastest over the past 10 years, East Asia 
is bound to carry the responsibilities to rescue its own economy and 
others.  This obligation will push the cooperation within Asia to a 
higher level.  Asia lags behind when compared to Western Europe 
because their domestic issues stand in the way of their integration. 
 People still have confidence in Asian countries.  Harmonious 
dialogue and communication are the only choices for Asia if it wants 
to realize regional financial integration. 
 
b. "Thailand Prime Minister is nearly captured by the 'red shirts 
army'" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(04/13):  Bangkok is in an emergency 
situation.  Military tanks are being driven on the streets of 
downtown.  The situation in Thailand has become more antagonistic. 
According to British Returns, the demonstrators nearly captured the 
current Thai Prime Minister when they entered into the Department of 
Interior. The former Prime Minister, Thaksin, delivered a phone 
speech calling more people to attend the demonstrations against the 
current government, while the current Prime Minister, Abhisit, 
delivered a speech via TV warning the demonstrators against 
continuing.  Meanwhile, the Thailand police are playing a game where 
they are "doing nothing".  According to the Global Times reporter, 
the relations between police and the demonstrators seem quite 
"harmonious".  Researcher He Sheng from the Chinese Institute of 
Contemporary International Relations thinks that a situation such as 
this has never happened in East Asia or in Asia before. An important 
international meeting was cancelled because the domestic situation 
is out of control. This is a big waste for national and 
international resources.  This event sets the precedent of ruining 
an important summit by violence. It is a warning to every country. 
The entirety of East Asia is disappointed about this disturbance. 
"It's a pity to postpone the summit....Every attendant of this 
summit has regrets and suffers a loss" He Sheng said. 
 
c. "[Focus] Disturbance in Thailand" 
 
BEIJING 00000970  002 OF 002 
 
 
 
The Shanghai-based Shanghai Media Group (SMG) publication, China 
Business News (Diyi Caijing) (04/13): This disturbance may cost 
about 5.7 billion USD for the Thai economy. A financial employee in 
Bangkok told CBN [China Business News], "I felt very embarrassed as 
a Thai.  Canceling this summit destroyed the image of Thailand. 
It's not easy to hold a summit....this summit is very important to 
the economy,' he continues, 'I think the security should be 
strengthened.  The army should maintain the steadiness of Thai 
situation more efficiently.... We are busy with political power 
fights while other countries are striving to stimulate their 
economy."  The Thai government is a mess.  A Thai officer told a CNB 
reporter that 'the government has made a lot of efforts for the 
financial crisis. But it's hard to tell when and how this political 
crisis will stop."  A Thai businessman says that Prime Minister 
Abhisit has developed a series of stimulus packages to stop the 
downturn of the economy. If he resigns, this plan will become 
irrelevant; a stable government can play a vital role in domestic 
economic recovery. Expert Zhang Xizhen from Peking University told 
CBN that this disturbance by the "red-shirts" has seriously impacted 
Abhisit's government and brought a negative international image. 
Both of these add weight to Abhisit's resignation. However, it's 
hard to say that Thaksin is the clear winner.  Professor 
Pongphaichit from Chulalongkorn University expressed that there were 
obstacles for Thaksin's return to Thailand, including the "yellow 
shirts army", the King of the Thailand, and his corruption charges. 
 
 
¶3. CHINESE SPYING 
 
"Western countries are seriously wrong about the capacity of Chinese 
spying" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(04/13):  Recently the criticism concerning 
"Chinese spying" is more frequent than the criticism which attacked 
the KGB, the Soviet organ of state security, during the Cold War. A 
Chinese Foreign Ministry Spokesman responded that these criticisms 
are the symptoms of those people affected by the "China Threat" 
virus and the "Cold War ghost".  A Western intelligence researcher 
and a Chinese scholar both think that it is very "unprofessional" to 
sensationalize the news concerning Chinese spying activities 
[conducted by individuals].  Judging from the global trend, 
individual spies are declining. 
 
The exaggeration of a Chinese spy reminds people of the Cold War. 
Li Wei from China Institution of Contemporary International 
Relations says that this kind of sensationalized news can reflect a 
lack of overall knowledge concerning intelligence collecting.  The 
capacity of China's intelligence collecting is much exaggerated.  Li 
says that the U.S. used to collect intelligence with the help of 
advanced equipment and via blackmail to help American companies gain 
contracts.  France did similar things.  But China has never done 
this.  Moreover, China doesn't have sufficient capital or the 
advanced technology necessary to do so.  China's internet also 
undergoes attacks. 
 
A Chinese military expert, Dai Xu says that "the U.S. and other 
western countries are driven by 'plot theory'. Western countries 
threaten others by [releasing] information gained through spying in 
order to damage the reputations of other countries."   This is the 
cheapest and most antagonizing method used between countries. A 
Western intelligence researcher thinks that this is just a stubborn 
disease from the Cold War era that western countries resist curing. 
"The sentiment of the statement: 'Chinese spying' shows that the 
biases toward China still exist," says Li, "the most efficient means 
to combat it, is to ignore it." Li opines that according to the 
published or reliable materials, there are no records of China's 
conducting any actions of technical spying. Active spying activities 
usually occur when the conflicts between two countries are clear and 
obvious.  But the relationship between China and other western 
countries are currently in a normal phase. 
 
Weinstein