MNI China Press Digest, Dec 7: Huawei, Fiscal Deficit, VAT Cut

     BEIJING (MNI) - The following lists highlights from Friday's Chinese press:

     Chinese tech giant Huawei said in a letter to its global supplier partners

that the company will not change its partnerships because of the actions of the

U.S. government. The letter came after Huawei's CFO was detained by Canadian

police at the request of the U.S., The Beijing News said Friday. Huawei said the

U.S. government putting pressure on a commercial company through various means

is a departure from the spirit of free economy and fair competition. In response

to the U.S. accusation against Huawei, the company again said it complies with

all applicable laws and regulations in the countries in which it operates, the

newspaper reported. (Link to the story: https://bit.ly/2E4Jf2l)

     It is both necessary and feasible for a moderate deficit-to-GDP ratio

increase over the next year, which will help mitigate rather than increase

risks, China Securities Journal said Friday in a front-page commentary.

Expanding the fiscal deficit, particularly to include some local government

implicit debt into the deficit, will help control risk, the Journal said. As

China's economy will be facing headwinds next year, expanding fiscal deficit is

an important tool for counter cyclical adjustments and stabilizing growth, the

newspaper said. (Link to the story: https://bit.ly/2SvCSsM)

     In the May to October period, China saw a total CNY298 billion cut from its

VAT take as it deepened VAT reform, the Securities Daily said Friday, citing

data released by the State Administration of Taxation. The manufacturing sector

enjoyed the largest tax cuts, totalling CNY71.45 billion, or 39.8% of the total

VAT tax cut, the Daily said. The administration also pledged to put forward

policy proposals that reflect larger, more substantial and extensive tax cuts as

soon as possible, the report said. (Link to the story: https://bit.ly/2Qi6tcN)

--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

[TOPICS: M$A$$$,M$Q$$$,MBQ$$$]