MNI China Press Digest Aug 21: EU EVs, Services, PBOC

MNI (MNI (BEIJING)) - MNI (BEIJING (MNI) - Highlights from Chinese press reports on Wednesday:

• Chinese officials hope Brussels and Beijing can take action to avoid escalating trade frictions following the EU’s recent proposal to impose up to a 36% duty on Chinese made electric vehicles, China’s Ministry of Commerce has said. The proposal was not based on mutual facts, had used sampling techniques to distort results, and did not fully absorb Beijing’s opinions, the ministry said. (Source: 21st Century Herald)
• Authorities will accelerate efforts to liberalise foreign trade and investment for services as China aims for high-level opening, according to a State Council executive meeting. Officials will support the international development of professional services such as finance, consulting, design, certification, education, and medical care, alongside cancelling restrictions on foreign investment in the manufacturing sector. The meeting showed goods and service trade were now of equal importance, said Yang Chang, chief analyst at Zhongtai Securities.
• China’s central bank may still lower the 7-day reverse repurchase rate in Q4 by 10 to 20 basis points followed by an LPR reduction, given current economic performance and price levels, Wang Qing, chief macro analyst at Orient Securities said. Banks left benchmark lending rates unchanged in August as authorities remained focused on guiding enterprise and household credit rates lower following July’s loan prime rate cut, Wang added. Wen Bin, chief economist at China Minsheng Bank, said banks maintained the LPR rate given continued net interest margin pressure.