VZCZCXRO6700
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #2792 2720844
ZNR UUUUU ZZH
R 290844Z SEP 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 6275
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI

UNCLAS BEIJING 002792 
 
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: IRAN, EAST ASIA, CHINA TRADE POLICY 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
¶1.  IRAN 
 
"China could take more initiative on the Iran issue" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(09/29)(pg 14): "In the past, China could, 
together with Russia, oppose U.S., UK, and French proposals on Iran. 
 However, now that the U.S. has traded its deployment of a missile 
defense system in Eastern Europe for Russia's acceptance of the 
West's proposal, China is in the embarrassing situation of having to 
choose sides in the confrontation between Iran and the West.  China, 
as a leader among developing countries, cannot just follow the West, 
nor will it support separatists in Iran, North Korea, or Burma. 
China should consider a third possibility: submitting its own 
proposal to the UN Security Council to mediate the conflict between 
the two sides and provide a platform for dialogue and negotiation. 
In this way, China will prove it is a responsible power, avoid 
having to choose sides, and potentially emerge as a winner in global 
diplomacy." 
 
¶2.  EAST ASIA 
 
"Relations between China, Japan, and the U.S. and the proposal for 
an 'East Asian community'" 
 
The China Radio International sponsored newspaper World News Journal 
(Shijie Xinwenbao)(09/29)(pg 24): "The U.S.'s objection to Japan's 
bid to host the next G20 summit is meant to teach a lesson to Japan 
after it called for an 'East Asian community.'  The U.S. is 
extremely vigilant about such an 'East Asian community' because the 
U.S. lacks confidence in itself.  On the G20 summit, the intensified 
battle between the U.S. and the EU over the future of the dollar and 
the euro has made East Asia the most important region for both 
sides, since China and Japan, the two big countries in the region, 
will play a crucial role in this respect.  When China is vague on 
disputes between the U.S. and the EU, the U.S. has to rely primarily 
on Japan's loyalty.  There has been a rule governing relations 
between China, the U.S., and Japan over the last few decades: when 
China-U.S. relations are good, China-Japan relations suffer, and 
vice versa.  This is the first time ever that both relationships are 
in good shape, which indicates that something new is happening 
between East Asia and the U.S.  How far Japan will go on its 'East 
Asian community' proposal still depends on the U.S.'s position on 
this issue." 
 
¶3.  CHINA TRADE POLICY 
 
"China needs to implement 'credible threats'" 
 
Guangdong 21st Century Publishing Company Ltd.'s business newspaper 
21st Century Business Herald (21Shiji Jingji Baodao)(09/29)(pg 2): 
"Recent trade conflicts, such as increased U.S. tariffs on imported 
Chinese tires and the EU's anti-dumping duties on Chinese seamless 
steel pipes, have highlighted China's lack of strategic responses 
for dealing with trade disputes.  Export-oriented companies in China 
enjoy favorable policies since the country relies on exports to 
increase its foreign exchange reserves.  These companies usually 
lower their prices to undercut competitors.  However, lower prices 
affect importing countries and, ultimately, lead to protectionism. 
If China cannot change this dynamic relatively soon it will face 
more trouble in the future.  China cannot fully rely on WTO rules. 
The anti-dumping investigation on U.S. poultry products is in fact 
the appropriate way to react.  Experience has shown that 
implementing a credible threat will have a positive impact and 
eliminate protectionism early on." 
 
 
HUNTSMAN