Cablegate: Media Reaction: U.S. Tariffs On Chinese Tire Imports

VZCZCXRO5659
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #2645 2580856
ZNR UUUUU ZZH
R 150856Z SEP 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 6076
INFO RUEHOO/CHINA POSTS COLLECTIVE
RHMFIUU/CDR USPACOM HONOLULU HI

UNCLAS BEIJING 002645

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: ECON KMDR OPRC CH

SUBJECT: MEDIA REACTION: U.S. TARIFFS ON CHINESE TIRE IMPORTS

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Editorial Quotes
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1. U.S. TARIFFS ON CHINESE TIRE IMPORTS

"Let trade retaliation become China's weapon"

The official Communist Party international news publication Global
Times (Huanqiu Shibao)(09/15)(pg 15): "The Chinese people support
China's retaliatory measures against the U.S., and believe China has
the ability to take revenge against the U.S. and should not be the
victim of protectionism. In fact, letting China's trading partners
see the potential damage to both sides caused by trade disputes will
effectively restrain protectionism. Therefore, China should
consider taking retaliatory measures, not with the goal of having a
trade war but rather with the goal of containing other countries'
inclinations towards protectionism. China should target
economically influential countries like the U.S. for retaliation in
order to send a warning to other trading partners who might consider
adopting similar protectionist measures. So far, China has only
taken retaliatory measures in the field of trade, but China could
also choose to take certain measures in other fields, like finance.
After all, during the financial crisis, other countries placed many
demands on China. China, as an emerging economy that has been
'suppressed by a certain hegemonic country in international trade,'
has reasons to use the weapon of trade retaliation to fight back.
However, China still hopes to control disputes within certain
parameters."

"Special protection case on tires triggers limited countermeasures;
China and the U.S. have 'buffer zone' for consultations"

21st Century Publishing Company Ltd.'s business newspaper 21st
Century Business Herald (21Shiji Jingji Baodao)(09/15)(pg 3):
"Obama's decision [to implement special protective measures on
Chinese tire imports] has not only triggered protectionism in the
U.S., but also opened the door for other countries to use this tool
in the future. Other industries in the United States are also
seeking special protective measures against China. Obama is not a
hard-line protectionist. The tire case is the first test of Obama's
trade policy, and his final decision reflected a compromise between
the positions of its opponents and its supporters. China was also
restrained in its response to Obama's decision. China and the U.S.
have both left room for further consultations on this issue. It
remains to be seen how much damage the tire case will have on
U.S.-China relations. Yu Shengxing, an attorney at Beijing Gaopeng
law firm, said the tire case is 'only a small bump in U.S.-China
relations.' It may have been the only choice available to Obama
during the economic recession."

"China should vigorously combat U.S. protectionism"

The China Radio International sponsored newspaper World News Journal
(Shijie Xinwenbao)(09/15)(pg 2): "It is very likely that the special
protection case on tires will form part of the Obama
administration's economic strategy towards China. Obama's decision
surprised a lot of people since Chinese tires do not actually
threaten the U.S. tire industry. What's more, the U.S. decision is
inconsistent with the current global political environment. The G20
summit is coming up, and yet Obama is sending protectionist signals.
Obama's decision on the special protection case on tires actually
symbolizes the U.S.'s real strategy towards China. China's role as
'the world's factory' has strengthened China's influence and will
speed up the internationalization of the yuan. Since Obama took
office, China should take notice that his foreign policy has tilted
towards countries neighboring China. Obama has visited Europe,
Africa, Latin America, and the Middle East, but not East Asia. The
Obama administration obviously needs to first exchange opinions with
other countries on how to deal with East Asia, where the main target
is China, the only country untouched by the financial crisis. This
case is a sign that the Obama administration is trying to contain
China, which is a massive manufacturing base outside of the U.S.'s
control. China should teach the U.S. as hard a lesson as possible;
otherwise, there will be endless trouble."

HUNTSMAN

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