VZCZCXYZ0003
RR RUEHWEB

DE RUEHIN #0910/01 2110813
ZNR UUUUU ZZH
R 300813Z JUL 09
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 2013
INFO RUEHBJ/AMEMBASSY BEIJING 9306
RUEHHK/AMCONSUL HONG KONG 0739

UNCLAS AIT TAIPEI 000910 
 
SIPDIS 
 
DEPARTMENT FOR INR/R/MR, EAP/TC, EAP/P, EAP/PD - NIDA EMMONS 
DEPARTMENT PASS AIT/WASHINGTON 
 
E.O. 12958: N/A 
TAGS: OPRC KMDR KPAO TW
SUBJECT: MEDIA REACTION: U.S.-CHINA STRATEGIC AND ECONOMIC DIALOGUE 
 
Summary:  Taiwan's major Chinese-language dailies focused news 
coverage July 30 on the Taiwan government's plan to sign an Economic 
Cooperation Framework Agreement with China and developments in 
cross-Strait relations; on former President Chen Shui-bian's legal 
cases; and on the U.S.-China Strategic and Economic Dialogue.  In 
terms of editorials and commentaries, a column in the 
pro-independence "Liberty Times" discussed the U.S.-China Strategic 
and Economic Dialogue and called it a "war of saliva."  The article 
said U.S. President Barack Obama's addressing China as a "partner" 
has certainly propped up China's international status, but, in the 
meantime, it has also roused concerns among the United States' 
traditional allies in Asia, such as Japan and Australia.  An op-ed 
piece in the pro-unification "United Daily News," however, said the 
formal launch of the U.S.-China dialogue indicated that the United 
States and China will jointly lead the trends of the globe and share 
the decision-making authority on global political and economic 
issues.  End summary. 
 
A) "U.S.-China Dialogue Is Reduced to War of Saliva" 
 
Washington correspondent Nadia Tsao wrote in the "Observation from 
Washington D.C." column in the pro-independence "Liberty Times" 
[circulation: 700,000] (7/30): 
 
"... As a matter of fact, Washington has already set the tone on its 
strategic guidelines regarding the United States' China policy since 
former Deputy Secretary of State Robert Zoellick defined China as a 
'responsible stakeholder' [in 2005].  For this year's meeting, China 
wants 'strategy' while the United States wants 'economics.'  Both 
sides got what they want, except that during the Bush 
administration, in addition to cooperation, Washington also attached 
great importance to 'taking refuge from danger.'  Since [President 
Barack] Obama took over the helm, however, Washington has 
deliberately underplayed the 'differences' in U.S.-China relations 
by evading the important bilateral disputes for the easy issues, in 
an attempt to resolve the international economic crisis. 
 
"Yet even with the strategic dialogue, problems will not necessarily 
be resolved, nor does it indicate that Washington and Beijing will 
become strategic partners overnight.  But by addressing China as a 
'partner' and saying U.S.-China relations are the most important 
bilateral relationship [for the United States], which will shape the 
21st century, this time Obama has certainly propped up China's 
international status, an issue that Beijing cares most.  But in the 
meantime, it has caused concern among the [United States'] 
traditional allies in Asia, such as Japan and Australia, which are 
worried about the long term growth of China's strength in Asia and 
the decline of the United States' strength." 
 
B) "Policy Changes Deeply Concealed in U.S.-China Dialogue" 
 
Associate Professor Chen Hsin-chih from National Cheng Kung 
University Department of Political Science opined in the 
pro-unification "United Daily News" [circulation: 400,000] (7/30): 
 
"The formal launch of the U.S.-China Strategic and Economic Dialogue 
indicated that both China and the United States will jointly lead 
the trends of the globe and share the decision-making authority on 
global political and economic [issues]. ...  First, the United 
States abandoned the strategy it had previously clung tightly to -- 
namely, counterbalancing the exchange rate for the Renminbi; 
[instead], it guaranteed the stable market value of U.S. treasury 
bonds, a move indicating that the two strong powers will work 
together to stabilize the status of the U.S. dollar. ... 
 
"Second, the economic growth patterns of the United States and China 
will have tremendous revisions.  China's domestic market will serve 
as a locomotive for its economic growth, while the United States 
will gradually move toward a new direction of having its exports 
direct its economic growth. ...  Such a huge change in the 
strategies of economic and trade development, in contrast to the 
vision of Beijing and Washington coordinating and working together 
on a green economy, will inevitably create a profound impact on the 
developments of future Doha Round WTO negotiations and post-Kyoto 
Protocol talks. 
 
"Finally, neither side has bothered to spend more time on disputes 
such as human rights and carbon taxes.  Add the fact that 
long-stagnated U.S.-China military exchanges will resume soon, it 
showed that the two strong powers share strong ambitions to reduce 
mutual strategic misunderstanding.  The United States will no longer 
adopt a tit-for-tat counterbalance strategy to deal with China's 
growth in strength.  Whether such impressive economic and trade 
cooperation will bolster the two powers to move from mistrust to 
mutual cooperation in the military field will be a major milestone 
that will affect the development of international relations for this 
century.  Further, it will create a profound, decisive impact on the 
development of cross-Strait relations. ..." 
 
WANG