US embassy cable - 10BEIJING327

MEDIA REACTION: DALAI LAMA, U.S.-CHINA TRADE RELATIONS

Identifier: 10BEIJING327
Wikileaks: View 10BEIJING327 at Wikileaks.org
Origin: Embassy Beijing
Created: 2010-02-08 08:13:00
Classification: UNCLASSIFIED
Tags: PREL ECON SENV KGHG KMDR OPRC CH
Redacted: This cable was not redacted by Wikileaks.
VZCZCXRO8664
RR RUEHCN RUEHGH
DE RUEHBJ #0327/01 0390813
ZNR UUUUU ZZH
R 080813Z FEB 10
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 8004
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI
UNCLAS SECTION 01 OF 02 BEIJING 000327 
 
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: DALAI LAMA, U.S.-CHINA TRADE RELATIONS 
 
-------------------- 
  Editorial Quotes 
-------------------- 
 
1. DALAI LAMA 
 
"China's Foreign Ministry spokesperson remarks on planned 
Obama-Dalai meeting" 
 
The official Communist Party People's Daily (Renmin Ribao) 
(02/06)(pg 3): "Chinese Foreign Ministry Spokesperson Ma Zhaoxu 
said, 'China resolutely opposes the visit by the Dalai Lama to the 
United States, and resolutely opposes U.S. leaders having contact 
with the Dalai Lama.'  Ma continued to note that such a position [by 
China] is 'constant and clear.' During President Obama's November 
visit to China, Chinese leaders had elaborated on such a stance.  We 
urge the U.S. to realize the high sensitivity of Tibet-related 
issues, to seriously treat China's stance and concern, to not permit 
the Dalai Lama's visit and to cease arranging meetings between him 
and U.S. leaders so as to avoid further undermining of China-U.S. 
ties."  (Note: Another major official newspaper Guangming Daily also 
published this report.) 
 
2. U.S.-CHINA TRADE RELATIONS 
 
a. "Sino-U.S. 'trade war' is heating up again" 
 
The Shanghai-based Shanghai Media Group (SMG) publication, China 
Business News (Diyi Caijing)(02/08)(pg A1): "The United States 
provoked a trade war again by imposing high anti-dumping duties on 
Chinese-made gift boxes and packaging ribbon.  This once again shows 
that 2010 is off to a difficult start for Sino-U.S. relations.  It 
also reflects that, because of the mid-term elections, Obama is 
eager to prove to the American voters that the U.S. Administration's 
China policy is tough so as to restore his declining support rate. 
Yao Jian, the Ministry of Commerce spokesperson, issued a statement 
on February 1, saying that following the financial crisis American 
trade protectionism has risen.  China has become the biggest victim 
of the U.S.'s abusive implementation of trade remedy measures. 
While the anti-dumping and counter-veiling cases the U.S. is 
imposing against China are relatively small in terms of value for a 
particular industry, however they are related to the food and 
clothing of a lot of people.  Ye Hailin, deputy director of the 
Asia-Pacific Institute at Chinese Academy of Social Sciences, 
believes that, apart from other disharmonious factors between China 
and the U.S., Sino-U.S. trade friction in 2010 is very worrisome. 
Although the total volume of trade involved is not very large, it is 
enough to affect the overall Sino-U.S. relationship." 
 
b. "The United States no longer sits still; it frequently uses evil 
tricks to force China to buy U.S. bonds" 
 
The Shanghai-based Shanghai Media Group (SMG) publication, China 
Business News (Diyi Caijing)(02/08)(pg A7): "This time the quick 
change of the U.S. policy (toward China) has surprised quite a few 
people.  The U.S. has almost used all deterring means, besides 
military means, against China.  China must be clear on discovering 
what the U.S. goals are behind its tough stances against China.  In 
fact, a fierce competition between the currencies of big countries 
has just started.  A crucial move for the U.S. is to shift its 
crisis to other countries - by coercing China to buy U.S. treasury 
bonds with foreign exchange reserves and doing everything possible 
to prevent China's foreign reserve from buying gold. The nature of 
such behavior is a rogue lawyer's behavior of 'ripping off both 
sides': taking advantage of cross-strait divergences, blackmailing 
the Taiwan people's wealth by selling arms to Taiwan, and meanwhile 
coercing China to buy U.S. treasury bonds with foreign exchange 
reserves and extorting wealth from the mainland's people. If we 
[China] use all of our foreign exchange reserves to buy U.S. 
Treasury bonds, then when someday the U.S. Federal Reserve suddenly 
announces that the original ten old U.S. dollars are now worth only 
one new U.S. dollar, and the new U.S. dollar is pegged to the gold - 
we will be dumbfounded.  Today when the United States is determined 
to beggar thy neighbor, shifting its crisis to China, the Chinese 
must be very clear what the key to victory is.  It is by no means to 
use new foreign exchange reserves to buy U.S. Treasury bonds.  The 
issues of Taiwan, Tibet, Xinjiang, trade and so on are all false 
tricks, while forcing China to buy U.S. bonds is the U.S.'s real 
intention." 
 
c. "Sino-U.S. trade friction is escalating but still manageable" 
 
Guangdong 21st Century Publishing Company Ltd.'s business newspaper 
21st Century Business Herald (21Shiji Jingji Baodao)(02/08)(pg 1): 
"On February 5, the Commerce Department reported the primary ruling 
on anti-dumping investigations on the U.S. chicken products. 
Although China started the investigation last September, now happens 
to also be the occasion when President Obama pushed China on RMB 
appreciation, insisted on arms sales to Taiwan and will meet with 
 
BEIJING 00000327  002 OF 002 
 
 
the Dalai Lama.  For its twelfth five-year plan, China will promote 
governments at all levels to conduct their policy objectives: 
transformation from 'GDP-oriented only' to 'employment first.' 
China and the U.S.'s emphasis on 'employment first' at the same time 
will trigger a fierce collision.  Now the appropriate interpretation 
of trade friction theory is 'productivity change' theory  - the 
ability of a country, whose development is slower than other 
countries, to learn also produced root causes for severe trade 
friction and no country will be satisfied with the status of the 
initial division of labor.   As a result, Sino-U.S. 'trade zones in 
conflict' will become larger and the two will compete with each 
other for jobs.  Unlike Japan, which is politically dependent on the 
United States, China is independent from the U.S.  China will make 
some changes in enlarging the imports of American products and the 
RMB appreciation, but only to a limited extent.  Despite the 
enlarging Sino-U.S. 'trade zones in conflict,' the intensity will be 
lower than during the U.S.-Japan trade conflict.  If Obama turns 
himself into both 'Wall Street's opposition,' and also the 'enemy' 
of U.S. big business, then the intensity of Sino-U.S. trade conflict 
will rise.  However, if Obama wants to narrow down as far as 
possible this divide, then the Sino-U.S. trade friction, while 
formidable, is still manageable." 
 
HUNTSMAN 

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