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R 070917Z JAN 10
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 7528
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI

UNCLAS SECTION 01 OF 02 BEIJING 000028 
 
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 SENV KGHG KMDR OPRC CH
 
SUBJECT: MEDIA REACTION: U.S.-CHINA RELATIONS, CARBON TARIFF, 
AFGHANISTAN, CHINA POLICY 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
¶1. U.S.-CHINA RELATIONS 
 
"Calmly deal with trade protectionism" 
 
The official Communist Party People's Daily (Renmin Ribao) 
(01/07)(pg 3): "Some countries' protectionist measures have added 
more difficulty to the global economic recovery.  Unfortunately, 
following the financial crisis, some countries seem to have 
forgotten the lessons history has taught us.  These countries try to 
pursue short term economic interests at the cost of free trade. 
History will prove once again that beg-thy-neighbor policies are not 
wise.  What's more, developing countries are the main victims in 
this round of trade protectionism.  Therefore developing countries 
should continue to take firm stands when promoting free trade and 
opposing trade protectionism.  They should also be prepared to fight 
a long-lasting war, in which under different circumstances flexible 
strategies and calmness will be needed, to face a more complicated 
international trade situation." 
 
¶2. CARBON TARIFF 
 
"A carbon tariff is an attack" 
 
Guangdong 21st Century Publishing Company Ltd.'s business newspaper 
21st Century Business Herald (21Shiji Jingji Baodao)(01/07)(pg 3): 
"According to the World Bank's research report, if carbon tariffs 
are fully implemented, products 'Made In China' will face carbon 
tariffs, in average in the international markets, up to 26%. 
China's export volume will thus slide down by 21%.  Once the 
European Union launches these carbon tariffs and China and other 
member states object, disputes will occur.  As a result, related 
proceedings will resort to the WTO's dispute settlement mechanism. 
The ruling will then be made by a panel composed of independent 
trade experts and lawyers.  The panel may either endorse the carbon 
tariff as legal according to the Article 20, as the EU believes, or 
find it illegal since it could be seen as a means to compensate for 
the loss of domestic enterprises rather than address climate change. 
 However, there aren't any panels that have processed carbon tariff 
trade disputes, thus its legality is still in question.  It is 
likely that the EU will choose to achieve emission reductions goals 
of 30% rather than 20%.  Under such circumstances, the EU is likely 
to adopt carbon tariffs to increase its negotiation chip and urge a 
larger devotion from other countries in emission reductions. 
However, the EU is also well aware that once carbon tariffs are 
implemented, a trade war may be started.  As Chinese Ambassador to 
the WTO Sun Zhenyu has said, the carbon tariff has changed efforts 
to address climate change into a trade war." 
 
¶3. AFGHANISTAN 
 
"China could step into Afghanistan through the Shanghai Cooperation 
Organization" 
 
The official Communist Party international news publication Global 
Times (Huanqiu Shibao)(01/07)(pg 14): "A continuously chaotic 
situation in Afghanistan will surely influence China's national 
interests.  Therefore, China should take more initiative in 
Afghanistan and play a more constructive role.  It is an issue 
concerning China's neighboring strategy and its international image. 
 China could depend on international cooperation in order to achieve 
their goals, like the Shanghai Cooperation Organization, the UN, the 
Asian Development Bank and others.  Besides, China could make an 
active effort to realize the reconciliation of various political 
parties inside Afghanistan.  In this way, China, acting as a 
coordinator and a host for the negotiation, will be able to win the 
support of the Afghan people and neighboring countries.  What's 
more, by choosing relatively stable and friendly regions, continuous 
economic investment could be made in Afghanistan.  Finally, China 
could create more opportunities for Afghan young people to come to 
China to study. In conclusion, it is a good thing for China to step 
into the Afghanistan peace and reconstruction process, but instead 
of sending military troops, China should involve itself through 
non-military means and assistance." 
 
¶4. CHINA POLICY 
 
"China provides answers to the international financial crisis" 
 
The official Communist Party People's Daily (Renmin Ribao)(01/05)(pg 
1,2): "China performed unbelievably well during the international 
financial crisis of 2009.  Within just one year after the crisis 
occurred, China's economy began to recover. Now, China is acting as 
a new growth engine for the world economy should it bottom out. 
China's contribution to global economic growth in 2009 will exceed 
 
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50 percent, since the end of World War II the world has been on one 
economic pattern, this is a new global economic trend.  What enabled 
China to sustain this 'impossible miracle?'  The truth is, China 
prepared early for the challenges.  As early as August 2007, Chinese 
leader Hu Jintao urged the country to strengthen its monitoring and 
early warning system for national economic security, as well as 
enhance the capacity of the financial sector to resist the risks in 
economic globalization.  China's strength comes from the ruling 
party's decisiveness, the institutions' support capacity and the 
guidance of theories.  Even if China has summoned all hands on deck 
to boost economic growth, it still made great efforts to improve the 
living standards of the people; the harder the economic 
circumstance, the more important the livelihood of the people. 
Therefore, China has duly undertaken its international 
responsibility and obligation, actively taken part in international 
cooperation to fight the crisis, promoted reform of the 
international financial system and coordinated its macroeconomic 
policies with other economies.  The institutional defects of 
capitalism have been fully exposed as neo-liberalism that has came 
to a dead end amid the financial crisis.  China, when pushed to a 
crossroads, has demonstrated its national capability to meet 
challenges with a superior system of socialism with Chinese 
characteristics. [NB: This article was featured on CCTV's Tuesday 
news. The author 'Ren Zhongping' is in fact an abbreviation of 
Renmin ribao zhongyao pinglun (important commentary from People's 
Daily)." 
 
GOLDBERG