VZCZCXRO1041
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #2184 2120942
ZNR UUUUU ZZH
R 310942Z JUL 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 5434
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI

UNCLAS BEIJING 002184 
 
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: PREL ECON KMDR OPRC CH
 
SUBJECT: MEDIA REACTION:  S&ED IMPACT ON U.S.-CHINA RELATIONS, 
CARBON TARIFFS 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
¶1.  S&ED IMPACT ON U.S. CHINA RELATIONS 
 
"What challenges is Obama's China policy facing?" 
 
The official popular newspaper Beijing Youth Daily (Beijing 
Qingnianbao) (07/31): "In many Chinese experts' eyes, the U.S. was 
ultra-courteous to the Chinese delegation at the S&ED, and a broad 
range of issues was covered in this round of talks.  This 
demonstrated that the U.S. is seeking to strengthen cooperation with 
China.  Zhang Guoqing, a research fellow at the Institute of 
American Studies at the Chinese Academy of Social Sciences, argues 
that there are four challenges for Obama's China policy.  First, 
will the U.S. fully take into account China's requests?  This is not 
only important for the economic and technical collaboration between 
the U.S. and China, it is also important as a real litmus test of 
Obama's commitment to improve the U.S.-China relations.  Second, 
will the Obama Administration fulfill the promises it made at the 
S&ED?  This will have a great impact on world stability.  Third, 
will the U.S. government be able to deal with domestic pressures? 
Whether Obama's China policy will continue this way remains to be 
seen.  Fourth, can the U.S. government focus on important issues and 
put minor problems aside?  A systematic risk prevention mechanism 
should be put in place to complement the S&ED." 
 
"Sino-U.S. S&ED lays cornerstone for regional cooperation" 
 
The Shanghai-based Shanghai Media Group (SMG) publication, China 
Business News (Diyi Caijing) (07/31): "Although China and the U.S. 
discussed global issues [at the S&ED], this does not indicate that 
the U.S.-China relationship has entered a new era.  Experts think 
that a possible solution for the North Korean nuclear issue could be 
that the U.S. and North Korea will engage in bilateral talks first 
and then return to the Six Party framework.  The Talks are expected 
to play a role in Northeast Asia similar to the Shanghai Cooperation 
Organization's role in Central Asia: the Six Party Talks might 
develop into a permanent mechanism for security consultations in 
Northeast Asia which could cope with conflicts in the region beyond 
just the North Korean nuclear issue.  When the North Korean nuclear 
issue is resolved, this mechanism can remain for continued security 
consultations in Northeast Asia.  On the Afghanistan issue, China 
cannot cooperate with the U.S. on military activities, though China 
has already started helping Afghanistan in its reconstruction." 
 
¶2.  CARBON TARIFFS 
 
"'Carbon tariff' interrupts cooperation on climate change" 
 
The official Communist Party People's Daily (Renmin Ribao) (07/31): 
"The concept of 'carbon leakage' has been exaggerated and given way 
too much political significance.  It has become an excuse for 
developed countries to avoid taking action.  Developed countries 
also use it to demand that developing countries participate in 
mandatory emission reductions.  This is something developing 
countries will not accept.  As a matter of fact, the loss to 
industry competiveness resulting from emission reductions is not as 
severe as some people claim.  Developed countries should not be too 
concerned about this.  The right to life is more important than a 
fair market.  Developing countries have a shared belief that the 
'carbon tariff' is trade protectionism under the guise of 
environmental protectionism." 
 
GOLDBERG