MNI China Press Digest Dec 4:Yuan, Biden Alliance, Data Safety

The following lists highlights from Chinese press reports on Friday:

China should include yuan exchange rate volatility in monetary policy frameworks such as the formation of a Financial Conditions Index (FCI), YiCai reported on Thursday citing Guan Tao, an economist from BOC International. Since the PBOC has stopped normalized intervention in the forex market, a FCI could serve as a tool to assess liquidity in the market and as a reference to future policy decisions, Guan said. A FCI would help ensure domestic economic and financial stability and would not target a specific exchange rate level, YiCai reported citing Guan.

Anticipation of a closer alliance between the EU and the incoming Biden administration as a counter to China's rising influence will be difficult to put into practice as the U.S. focus is on protecting its hegemony in leading the western alliance while Europe's concerns are protecting its economic interests, wrote Hu Xijin, the editor of the state-run Global Times. The two sides will have difficulties in coordinating their desired goals and policy measures, and China shouldn't have any fears beyond the psychological pressure, the commentary said.

China should include regulations on cross-border data flow in trade and investment negotiations and take the initiative on these issues given the lack of a universal data policy, the Economic Information Daily reported. Data is a strategic resource which is a part of sovereignty, regardless of whether it is owned by individuals or the state, the Daily report said. China should establish legal systems that balance data protection and data flow. Ensuring data protection and privacy is seen as one barrier preventing China from becoming a part of the CPTPP.