It looks like it could be true.  James Fallows has posted some information on his blog, while the actual job posting is found at JournalismJobs.com.

It clearly states the position will be in New York, and requires a start-date no later than January 2009.

Now the question that begs to be asked:  Who will spend money on China's official English newspaper in the United States?  While some American media can be less than interesting/fair/balanced/unbiased, it's still a league apart from their Chinese counterparts.  Does anybody watch CCTV 9 in the United States other than for a laugh or two, or because of a serious interest in China?

Even those people will likely not be enough to keep a US edition afloat (mind you, with the government backing the project, money is not an option).

If China ever releases its hordes of talented people from the shackles of government censorship, I have no doubt journalism would flourish in China.  Perhaps, at that time, there would be a wide readership of Chinese publications in other corners of the world.  But until then, the China Daily, in no matter which edition, will only be seen as a simple propaganda rag.