VZCZCXRO4776
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #2477 2430907
ZNR UUUUU ZZH
R 310907Z AUG 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 5831
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI

UNCLAS BEIJING 002477 
 
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: CHINA'S SECURITY, CCI CORPORATE BRIBERY 
CASE, U.S.-CHINA "BASKETBALL DIPLOMACY" 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
¶1.  CHINA'S SECURITY 
 
"Volatile situation in areas neighboring China tests China's 
response capability" (pg 4) 
 
The official Xinhua News Agency international news publication 
International Herald Leader (Guoji Xianqu Daobao) (08/31): "China's 
rise will face greater challenges if the security environment in the 
areas neighboring China continues to deteriorate.  Chinese experts 
argue that a complicated and chaotic 'belt' of security challenges, 
including nuclear weapons, gambling, drugs, and terrorism, surrounds 
China.  Few countries in the world face as complicated a security 
environment as China.  The U.S., the superpower, is geographically 
situated far away in North America, which allows it to achieve 
hegemony.  China's diplomatic focus should be on Asia, but up to 
this point China has not focused enough on its Asia policy.  The 
U.S., Japan, and South Korea have formed a small NATO in Northeast 
Asia, closing off China to the east.  In addition, India is 
increasing its control over the Indian Ocean and plans to 
collaborate with the U.S., Japan, and Australia in this area.  All 
of these countries have obvious plans to contain China, particularly 
the U.S.  The U.S. has even reached tacit agreement on this point 
with small countries neighboring China." 
 
¶2.  CCI CORPORATE BRIBERY CASE 
 
"State-owned companies should not always supervise themselves" (pg 
15) 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(08/31): (Related to the Control Components 
Inc. (a U.S. company) bribery case) "The State-Owned Assets 
Supervision and Administration has established a special 
investigation team to look into the recent bribery case involving 
China National Petroleum Corporation (CNPC).  This is a critical 
step in supervising state-owned enterprises.  CNPC's recent purchase 
of a commercial real estate venture at one third of the announced 
price has created wide-spread controversy.  The CNPC responded by 
conducting an internal investigation, which the public does not 
trust at all.  The public lacks confidence in CNPC's determination 
and capability to investigate its internal problems.  Therefore, 
state-owned enterprises' self-supervision should stop.  The active 
measures taken by the State-Owned Assets Supervision and 
Administration in investigating the CCI bribery case should serve as 
a lesson for CNPC's real estate purchase." 
 
¶3.  U.S.-CHINA "BASKETBALL DIPLOMACY" 
 
"'Basketball diplomacy' shows development of China-U.S. relations" 
(pg 3) 
 
The official Communist Youth League China Youth Daily (Zhongguo 
Qingnianbao)(08/31): "The Washington Wizards' visit to China at Deng 
Xiaoping's invitation 30 years ago witnessed the normalization of 
U.S.-China relations.  To commemorate this event, the Wizards will 
visit China again starting on September 5.  The Wizards are very 
proud of their historic role in the development of China-U.S. 
relations.  At a reception held in Washington, China's Ambassador to 
the U.S., Zhou Wenzhong, said the Wizards' visit to China will have 
historic significance.  The visit will not only commemorate the 30th 
anniversary of China-U.S. relations, but will also be beneficial for 
enhancing exchanges between the 'sister cities,' Beijing and 
Washington.  During the first China-U.S. Strategic and Economic 
Dialogue last month, President Obama gave Vice Premier Wang Qishan a 
basketball with his signature on it as a gift, which was seen as 
symbolic of the dialogue.  The Washington Wizards' return to China, 
30 years later, will help turn a new page in China-U.S. relations. 
'Basketball diplomacy' seems to be playing an increasingly important 
role in China-U.S. relations." 
 
 
HUNTSMAN