MNI China Press Digest April 17: Deflation, Employment, RCEP

Highlights from Chinese press reports on Monday:

• China should combine policies that support domestic demand and deepen supply-side structural reforms to ease the markets deflation concerns, according to Guantao, former director of the State Administration of Foreign Exchange. Authorities should ensure chosen policies can stimulate real economic demand and not cause financial bubbles, and zombie companies. Economic reforms are needed to improve employment and incomes, Guan said. The central bank should remain cautious when relying on money growth to raise prices in response to deflation worries and should take a lessons-learnt approach from the recent turmoil in the European and American banking sectors.
• China’s economy requires stronger policy guidance to stabilise employment, according to a recent State Council executive meeting chaired by Premier Li Qiang. To boost employment, policy makers proposed support for stabilising enterprise operations, boosting the macroeconomic environment and improving market confidence. News outlet Yicai expects China will soon release a package of employment boosting policies, with a focus on helping recent graduates and migrant workers. The economy needs high quality development to ensure long-term and sustainable employment solutions, one expert told Yicai.
• China will promote high-quality reforms for the Regional Comprehensive Economic Partnership (RCEP), according to Ye Fujing, director at the China Macro Economy Research Institute. RCEP trade rules should move closer to high-standard trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Ye said. Going forward, China and ASEAN need to reduce trade barriers, increase efficiency of regional supply chains and strengthen cross-border industrial platforms. Countries in the region can expand trade in fields such as digital economy and green economy and promote “soft connectivity” to support service trade, Ye said. (Source: 21st Century Herald).