MNI China Press Digest Dec 31: EU Deal, GDP, Local Bonds

The following lists highlights from Chinese press reports on Thursday:

China has demonstrated its determination and confidence in the further opening of its economy with the conclusion of bilateral investment treaty negotiations with the EU, China's Chairman Xi Jinping said at a virtual conference with European leaders on Wednesday. The People's Daily reported comments from Xi, who said the pact, which took seven years to negotiate, provided Chinese and European companies with greater market access and integration. China also hopes to coordinate with the EU on vaccine distribution, the global economic recovery and the development of the green economy, the Daily reported.

China should see a GDP growth of 6% or higher in the last quarter of 2020 based on strong recoveries in exports and the service industry after China's tight control over the pandemic, the 21st Century Business Herald reported citing an interview with Peng Wensheng, chief economist from CICC. GDP growth in 2021 should reach 8%-9%, according to Peng. China will be mindful of rising debt levels while implementing monetary policies, he said. China should also anticipate exports slowing as other exporters regain capacity and as people shift from commodity consumption to services.

China may issue CNY 4.7 trillion in new local government bonds in 2021, the China Securities Journal reported citing analyst Sun Binbin from TF Securities. Infrastructure spending from bond proceeds may be scaled down as the economy normalizes from this year's pandemic, Sun said. Total local debt issuances reached CNY6.4 trillion in 2020, the Journal reported.