MNI China Press Digest, Sep 10: Sino-US, Inflation, RRR Cuts

MNI (Beijing) - The following lists highlights from Chinese press reports on Thursday:

China needs to preserve and widen its access to the U.S. market and should not narrowly interpret the term "inner circulation" as actively seeking to reduce dependence, Song Guoyou, the deputy director of the centre of U.S. research at Fudan University, wrote in Global Times. China still counts the U.S. as the top destination for exports and depends heavily on its advanced technology, including cancer drugs, and there was potentially a huge negative impact if the U.S. imposes financial sanctions, Song wrote. China should defend its engagement with the U.S. market and avoid measures that could worsen the decoupling.

China's inflation may return to a downward trend in Q4 due to gradually declining food prices, the Economic Information Daily reported citing Tang Jianwei, the chief researcher at the Bank of Communications. Pork prices, the main CPI driver, may plunge due to the higher base of comparison with last year and improved supply, while the supply of vegetables and fruit is seen to be rising, the newspaper said citing analysts. CPI rose 2.4% y/y in August, slower than July's 2.7%.

The PBOC should continue to make targeted RRR cuts to help banks replenish long-term capital, the Securities Daily said citing researchers from Kaiyuan Securities. The cost of liquidity is likely to rise by the end of the year due to reduced deposits, limited injections, and less-than-expected government funding, the newspaper said.