MNI China Press Digest April 23: Xi, PBOC on Yuan, SOE

     BEIJING (MNI) - The following lists highlights from the Chinese press for

Monday:

     Technology is key to China's development, and China should speed up its

breakthroughs in information technology, Chinese President Xi Jinping said at an

internet and IT-related government conference, according to Xinhua News Agency.

China should make its own chip, as the U.S. has forbidden American chip-makers

from selling chips to the Chinese mobile-maker ZTE for seven years, and should

aim to win a "turnaround battle", said Xi.

     China's capital flow is basically balanced, and the yuan exchange rate

remains stable, said PBOC Governor Yi Gang at the IMF Spring Meetings in

Washington, reported Caixin. The yuan fluctuates based on demand and supply in

the market and adjusts itself against a basket of currencies, Yi said. The yuan

exchange rate scheme is operating well, and its good momentum will continue, Yi

added. He stressed the PBOC has not intervened in the FX market "in quite a long

time". As trade tensions between China and the U.S., the best course of action

for China is developing its economy, continuing reforms and the opening up of

its financial sector, Yi stated. 

     China's state-owned enterprises should further open up and cooperate with

multinational corporations, said Xiao Yaqing, head of SASAC, according to China

Securities Journal. China should encourage the participation of more foreign

companies in the mergers and acquisitions as well as the reforms of SOEs,

especially in energy and mineral resources, Xiao said. Chinese companies need to

strengthen innovation and development, and should no longer be restricted by

other countries in certain areas.

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

--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com

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