MNI China Press Digest, Dec 3: Trade War, Tariffs, Tax Cuts

     BEIJING (MNI) - The following lists highlights from Monday's China press:

     Although China and the U.S. have agreed a 90-day trade war ceasefire,

Beijing can't yet count on the war being over, as long haul remains, Xiake Dao,

an online publication run by the People's Daily, said in a commentary piece on

Sunday night. China must still guard against extreme situations, such as the

U.S. imposing more tariff on all Chinese exported goods in their domestic

economy worsens, the article said.(Link to the story: https://bit.ly/2FUXTMj)

     If trade friction between the U.S. and China is removed, there is no need

for a substantial easing in China's monetary and housing policies,

http://Jiemian.com reported Monday, citing analysts from Everbright Securities.

If the tariff rate does not increase to 25%, the negative impact on Chinese

exports will improve by at least 1%, the publication said, citing analysts. For

the first three quarters, slowing overseas demand has dragged Chinese GDP growth

lower by 0.7 percentage points. If the current CNY200 billion of tariffs is not

increased, the potential impact on the furniture, electronics, machinery and

other sectors will be significantly reduced or delayed, the article said, citing

analysts from CICC. (Link to the story: https://bit.ly/2E6VdJy)

     China's companies are less than happy with the recent tax cuts put in place

by the Chinese government, as due to different ways of measuring them, they find

the CNY1.3 trillion cut not as attractive as it appears, China Business News

said Monday, citing Liu Shangxi, dean of the Chinese Academy of Fiscal Science.

Due to the tax collection department's lack of capacity and taxpayers' failure

to comply with tax laws, there remains a gap between what tax business should

pay and what it actually pays, the report said citing Liu. Hu Yijian, professor

at Shanghai University of Finance and Economics suggests that the government

should focus on substantial tax cuts, rather than lowering the nominal rate, the

report added. (Link to the story: https://bit.ly/2U8nOmI)

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

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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