VZCZCXRO8568
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #1753/01 1760848
ZNR UUUUU ZZH
R 250848Z JUN 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 4827
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI

UNCLAS SECTION 01 OF 02 BEIJING 001753 
 
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: WTO, U.S. POLICY, NORTH KOREA, FEDERAL 
RESERVE 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
¶1. WTO 
 
"Don't use free trade to force China" 
 
English-language daily published by Global Times/Huanqiu Shibao, the 
international edition of the People's Daily (06/25): "Restricting 
the export of strategic resources is China's indivisible right. 
Free trade excuses cannot violate the basic rights of the country 
and the people.  The behavior of the U.S. and EU has stepped on the 
toes of the international governmental rules.  This has invaded the 
basic rights of our sovereign country.  The bad example by the U.S. 
and Europe will also hide the risk of chain reactions.  Their 
behaviors are also contradictory to their own measures.  The U.S. 
and Europe have the most strict export controls in the world.  Their 
trade policies have swayed backward and forward based on the 
influence by interests groups, lacking consistency.  China doesn't 
need to take their comments and behaviors too seriously.  This is 
not beneficial for the stable development of U.S. and European 
economic trade. It is unhelpful when building their authority.  The 
U.S. and Europe won't damage the mutually beneficial economic and 
trade relations with China.  China won't need to seriously worry." 
 
¶2. U.S. POLICY 
 
"The U.S. formally establishes cyber war command office" 
 
English-language daily published by Global Times/Huanqiu Shibao, the 
international edition of the People's Daily (06/25): "The U.S. 
announced that it established a cyber war office as of June 23rd. 
Thus the U.S. has become the first country in the world to introduce 
the Internet to a War Department. The U.S. military is very 
responsible and experienced when controlling public opinions. 
China should cautiously consider whether it should also establish a 
cyber command office.  The U.S. cyber war command office is likely a 
trap. They are trying to beat their opponents in a cyber-arms race. 
China's threat has become an excuse for the U.S. to start a cyber 
arms race.  China has the most netizens in the world and is also the 
country most frequently attacked by hackers.  If the U.S. starts a 
cyber war command office, China also has reasons to do so." 
 
¶3. NORTH KOREA 
 
"The West fabricates the theory that China is responsible for the 
North Korean nuclear issue" 
 
The official Xinhua News Agency international news publication 
International Herald Leader (Guoji Xianqu Daobao)(06/25): "Recently, 
the West has had doubts about China's resolve to help bring about a 
relevant solution to the North Korean issue.  It is irresponsible to 
blame China alone.  Various factors have caused the situation in 
North Korea to worsen.  Chinese experts indicate that China has 
always been making great coordination efforts, but received a lot of 
unfair criticism.  China, as the go-between, has done a lot of 
uneasy jobs.  The U.S. must also take certain responsibilities. 
Since Obama took office, the official in charge of Eastern Asia 
affairs has yet to be in place.  The U.S. promises North Korea 'a 
blank check.'  China has made large efforts to solve this issue. 
However, certain countries have not been helpful.  All countries, 
especially the U.S., should be sincere when resolving the North 
Korean issue.  All countries should jointly bear the 
responsibilities." 
 
¶4. FEDERAL RESERVE 
 
"The Federal Reserve meeting is coming up; disagreements concerning 
the future of the USD are historically rare" 
 
The Shanghai-based Shanghai Media Group (SMG) publication, China 
Business News (Diyi Caijing)(06/25): "The Federal Reserve meeting 
about currency policy has finally come, but certain international 
agencies' judgments on the future of the USD are extremely 
different. Before the prospects of global economic recovery begin 
brightening, no matter the result of the Federal Reserve meeting, 
disagreements will continue to exist. Some people are optimistic 
about the USD. They believe that the U.S. economy will be the first 
to recover and therefore they support the special status of the USD. 
Concerning this optimism, a Chinese analyst said the U.S. balance of 
payments is improving. Since last September, the trade deficit has 
been decreasing. Short-term decline of gold and oil prices will 
likely bring new motivation to boost the increase of the USD. 
Currently, the situation is unclear, but if the U.S. economy 
recovers before other western developed countries, it will benefit 
the USD. On the contrary, the people who are pessimistic about the 
USD hold that the Federal Reserve will continue keeping a low 
 
BEIJING 00001753  002 OF 002 
 
 
interest rate. Concerning this pessimism, the analyst said the 
recent rebound of the USD is not because of the prospects that the 
Federal Reserve will increase the interest rate, but because the 
economic statistics of the other areas is not good. Due to the 
rising unemployment rate, the stagnant increase of the GDP based on 
inflation statistics, increasing the interest rate is not an 
option." 
 
PICCUTA