MNI China Press Digest Dec 24: Alibaba, Stable Yuan, Tariffs

The following lists highlights from Chinese press reports on Thursday:

China's anti-trust investigation into Alibaba Group is to better regulate and guide the healthy development of the company and its internet peers as top policymakers mull the risks of a few large companies dominating the market, the People's Daily said. The State Administration of Market Regulation this week launched an anti-competition probe into Alibaba for allegedly forcing wholesalers to choose one of two competing platforms. China remains supportive of the online economy, the People's Daily said.

China will establish a modern central banking system prioritizing currency stability, sound employment, financial stability and balance of payments, PBOC Governor Yi Gang wrote in the People's Daily. China needs to take a market-based monetary and regulatory approach with the PBOC sustaining a healthy balance sheet, wrote Yi. China will prevent fiscal deficit monetization by building an independent central bank financial budget management system, and corporate credit risks must not impact the PBOC's balance sheet and the currency, wrote Yi.

China will lower import tariffs on more products in high demand, including medical equipment and raw materials for baby powder, the Ministry of Finance said on its website. China will implement zero tariffs on the second batch of cancer drugs, raw materials for rare disease drugs and food for children with special diseases, the statement said. Starting Jan. 1, China will implement temporary import tariffs, lower than the most-favored-nation tariffs, on 883 products, up from 859 products taxed at temporary rates in 2020, according to the statement.

China may see rising inflation in 2H of 2021 on strong growth and soaring prices of raw materials, YiCai reported citing Shen Jianguang, chief economist of JD Finance. The PBOC should focus more on core inflation to maintain the continuity and stability of its policies, the newspaper said, citing Zhang Jun, chief economist of Morgan Stanley Huaxin Securities.