MNI China Press Digest April 1: Semiconductors, PMI, GDP Q1

Highlights from Chinese press reports on Monday:

• China has expressed strong opposition to the U.S.’ latest revision of semiconductor export controls which came less than six months since it introduced the rule, according to a statement on the Ministry of Commerce website late Sunday. Washington has set more obstacles to China-U.S. trade by increasing the compliance burden, the ministry said, emphasizing the industry is highly globalised and calling for a predictable business climate. China, as the world’s largest semiconductor market, will strengthen cooperation to promote supply chain stability, it said.
• China’s manufacturing PMI of 50.8 in March showed the economy has made marginal improvements after rising above the 50 mark for the first time in six months, according to Wen Tao, analyst at the China Logistics Information Centre. The economy benefited from the gradual implementation of macro policies, increasing confidence and stabilizing foreign trade, Wen added. Cai Jin, vice president of the China Federation of Logistics and Purchasing said corporate sentiment was improving following a good spring festival, with non-manufacturing business activity expectation index rising to 58.0, with strong rises from the construction and service industries.
• China’s Q1 GDP is expected to grow around 5%, according to chief economists interviewed by Securities Daily. The economy has seen consumption, investment, and exports during Jan-Feb all perform better than the same period last year, which indicates Q1 growth of slightly over 5%, according to Chen Li, chief economist of China International Finance Securities. Zhao Wei, chief economist of Sinolink Securities believes Q2 fixed asset investment will increase as authorities step up fiscal intensity and accelerate the implementation of ultra-long-term special treasury bonds.