MNI China Press Digest Feb 10: Iron Ore, Local Debt, US Trade

The following lists highlights from Chinese press reports on Thursday:

• China’s market watchdogs summoned iron ore consultancies asking them to ensure accuracy and not to fabricate and distribute false information on price gains, the Economic Information Daily reported citing the National Development and Reform Commission. As of Feb. 8, the most-active iron ore futures in China surged over 20% this year, indicating “irregular fluctuations” that may be due to speculation, the newspaper said citing the commission.
• China’s local government debt issued in January totaled CNY699 billion, a rise of CNY337 billion from January 2021, which promises to boost investments in infrastructure projects and support growth, the Securities Times said citing Wind data. The so-called special-purpose bonds, geared toward infrastructure building, accounted for 69.3%, with further CNY975.6 billion remaining to be issued in the first quarter, the newspaper said. With the rapid issuances of debt, China’s infrastructure investment may rise as much as 10% in the first half, the newspaper said citing economist Ming Ming of Citic Securities.
• The ballooning trade deficit with China recorded by the U.S. last year showed it has no alternative to replace China’s manufacturing powerhouse, the Global Times said in an editorial after data released by the Department of Commerce. The deficit with China last year was $355 billion, up from $310 billion in 2020, the newspaper said. The key to narrowing China-U.S. trade deficit is relaxing restrictions on exports to China, and allowing China to buy what it needs, Global Times said. The U.S. inflation crisis has to do with heavy tariffs on Chinese imports, and if the Biden administration keeps record prices, it is likely to ruin the Democratic Party in the midterm elections, the newspaper said.