MNI 5 Things: China Plans To Reduce Trade Surplus: Premier Li

     BEIJING (MNI) - Chinese Premier Li Keqiang took questions from reporters at

a press conference following the two-week National People's Congress concluded

on Tuesday. MNI highlighted five things:

     - China will reduce overall tariffs on imports, end the practice of seeking

technology transfer as conditions of foreign investment, and seek better

protection over intellectual property. China sees its excessive trade surplus

unsustainable, and is rebalancing trade with other nations. 

     - China invests its forex reserve on diversified and long-term basis. It is

a responsible investor and plays by market rules. A stable China-U.S.

relationship is in both sides' interests. China does not want a trade war with

the U.S. Both sides should act rationally and avoid being led by emotions. 

     - China welcomes de-escalation of tensions on the Korea Peninsula, supports

inter-Korea dialogues and denuclearization through negotiations. Li will

officially visit Japan in the first half as relations warm, but warns further

consolidation is needed. China won't pursue expansionist policies or seek

hegemony, and will shoulder more responsibilities compatible with its status as

a developing country. 

     - China will continue to lower its fiscal deficit ratio given signs of

strengths in the economy including above-expectation fiscal results last year,

and double-digit growth of revenue in the first two months. China won't change

the current pro-active stance on fiscal policy. 

     - China is capable of forestalling financial crises helped by the large 

reserves and risk coverage enjoyed by its banks. China will advance campaign to

manage risk exposures, especially clamp down on illegal financial practices. The

merge of the country's banking and insurance regulators will unify regulation

and close loopholes.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com

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