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China Should Avoid Tightening Policies: Daily

CHINA PRESS

China should avoid tightening its monetary policies in the short term as investment growth and consumption expansion are too slow to sustain the recovery, the Economic Information Daily, run by the official Xinhua News Agency, said in a commentary. Tightening too soon may increase the cost of corporate financing and burden businesses with credit risks, wrote the newspaper. Letting the yuan rise too quickly and by too much could also weaken the competitiveness of exporters, the newspaper commented.

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