China Press Digest Dec 15: Trade, Domestic Demand, PBOC Rules

Highlights from Chinese press reports on Thursday:

• China’s export outlook for next year can be improved if measures are taken to promote foreign trade, according to Yicai.com. Policy recommendations include making full use of the Regional Comprehensive Economic Partnership trade agreement, diversifying exports by increasing trade with Belt and Road nations, and coordinating efforts with the Asian Infrastructure Investment Bank. Other options include increasing financial and fiscal policy support for foreign trade enterprises, avoiding exchange rate risks, and promoting RMB trade settlement. New forms of cross-border trade such as use of China-Europe express trains should be used, and the use of funds to promote services trade should be enhanced.
• The State Council has issued a report detailing plans to enhance domestic demand from 2022- 2035, according to China Securities News. The plan cites the need for capital markets to serve the real economy, and to cultivate a complete domestic demand system by 2035. Growth in domestic demand is inevitable as China moves to a new development model, with domestic circulation the main driver of economic growth, the newspaper said citing experts. There is a need for effective investment in sectors like infrastructure upgrading and technological transformation to enhance high quality growth. Improving people's livelihoods under urbanisation and rural-revitalisation is key to increasing domestic consumption, another vital engine of domestic demand, the paper said.
• The People’s Bank of China issued draft rules on supervising and managing financial infrastructure to promote finance to better serve the real economy, according to a statement on the PBOC website. It will maintain absolute state control over financial infrastructure institutions that involve national security, and a security review shall be conducted for foreign investment that may affect national security, the statement said. It also barred anyone or institution from setting up any form of financial infrastructure without approval, or use “finance”, “exchange”, “trading center” and other approximate names. The draft is open for public comments.