Tuesday, September 6, 2011

US embassy cable - 10BEIJING327

US embassy cable - 10BEIJING327

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

Identifier:10BEIJING327
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 

US embassy cable - 10BEIJING327:

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