VZCZCXRO3205
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #2994 3020909
ZNR UUUUU ZZH
R 290909Z OCT 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 6634
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI

UNCLAS BEIJING 002994 
 
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: U.S.-CHINA TRADE RELATIONS, STRATEGIC 
REASSURANCE, JCCT 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
¶1.  U.S.-CHINA TRADE RELATIONS 
 
"U.S. intentions behind playing the 'steel card'" 
 
Guangdong 21st Century Publishing Company Ltd.'s business newspaper 
21st Century Business Herald (21Shiji Jingji Baodao)(10/29)(pg 2): 
"On October 26 while in Guangzhou, the new U.S. Ambassador to China, 
Jon Huntsman, said repeatedly that Sino-U.S. relations are 
'positive, cooperative, and comprehensive,' and in their best period 
ever.  However, the trade disputes between the two countries seem to 
be in full gear.  As Assistant U.S. Trade Representative Timothy 
Stratford noted while in Guangzhou in April, while other countries 
are reducing their steel production as global demand for steel 
falls, China's is increasing its steel production, which will have 
an impact on other countries' market share.  Under such 
circumstances, other countries, including the U.S., will surely take 
retaliatory measures.  The U.S. tariffs, announced as they were so 
soon before the JCCT, which is intended to prepare for the upcoming 
visit of President Obama, have aroused more attention than previous 
cases.  The Assistant U.S. Trade Representative's comment also shows 
that the U.S. is unwilling to open its market to others.  When asked 
about U.S. special protection measures on Chinese tire imports, both 
the U.S. Ambassador and U.S. Secretary of Commerce Gary Locke said 
that with more than $400 billion in bilateral trade each year having 
differences over trade issues is inevitable, and therefore 
negotiations are very important.  The United States' move to impose 
temporary tariffs on Chinese steel products shows that the U.S. is 
laying all its cards on the negotiating table for the JCCT." 
 
¶2.  STRATEGIC REASSURANCE 
 
"The U.S. must provide China with the necessary security guarantee" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(10/29)(pg 14): "Now is the time for the U.S. 
to stop arms sales to Taiwan.  If the U.S. really intends to improve 
bilateral military relations, which reached their lowest point last 
year, it should decide to stop arms sales to Taiwan now.  Since 
Obama's inauguration as President, the U.S. has not made any moves 
on arms sales to Taiwan; however, it is still unclear whether or not 
this is a long-term policy.  The U.S. should let this good-will 
gesture last.  The Obama administration has put new demands on China 
with the new phrase 'strategic reassurance.'  In fact, the issue 
should be whether or not the U.S. can provide strategic reassurance 
to China.  Washington's insecurity is caused by the U.S. itself. 
For the U.S., making substantive promises to China is a problem of 
'easier said than done.'  Only when the U.S. cares for China's core 
interests and leaves China room to develop can U.S.-China relations 
achieve long-term peace and stability." 
 
¶3.  JCCT 
 
"Locke came to China to prepare Obama's 'gift' for China; China 
expects the U.S. to recognize its market economy status" 
 
The Shanghai-based Shanghai Media Group (SMG) publication, China 
Business News (Diyi Caijing)(10/29)(pg A1): "Experts commonly 
believe that the Joint Commission on Commerce and Trade (JCCT) is a 
warm up for the two countries' summit next month.  What China is 
most concerned about is whether or not Obama will acknowledge 
China's market economy status during the visit.  Zhou Shijian, a 
Senior Research Fellow at Tsinghua University's Research Center on 
Sino-U.S. relations, said optimistically that the U.S. is likely to 
acknowledge China's market economy status at the JCCT.  China will 
not compromise on the RMB issue.  The United States should not be 
too greedy.  The longer it holds on to the recognition of China's 
market economy status card, the lower its value will be.  In the 
end, the U.S. will get nothing at all.  Professor Chen Ping at 
Peking University's National Development Research Institute said 
that China made too many concessions when joining the WTO, and 
argued that the U.S. should recognize China's market economy status 
since the U.S. needs China's cooperation on the financial crisis. 
The U.S. also needs China's support in implementing currency 
stimulus policies and issuing more bonds.  Professor Li Ling at 
Peking University said that even if the U.S. acknowledges China's 
market economy status, it is still likely to impose tariffs and 
conduct countervailing investigations on Chinese products.  So there 
will not be much of a difference." 
 
 
HUNTSMAN