MNI China Press Digest, Jan 8: Trade, RMB, Tax Cut

     BEIJING (MNI) - The following lists highlights from the Chinese press for

Monday:

     Most of China's core interests do not overlap with those of the U.S., so

the two countries should avoid conflicts and coexist and co-operate for mutual

benefit, the Global Times said in an editorial late Tuesday. China must admit

that the comprehensive strength of the U.S. economy, technology, and military

are above that of China, the editorial said. None of China's countermeasures

should be based on the assumption that China's strength will soon surpass that

of the U.S., the Times said.

     Market analysts have identified key drivers for the recent appreciation of

the Chinese yuan against the U.S. dollar, citing factors such as seasonal sales

of foreign exchange and positive market sentiment. The article in the Shanghai

Securities Journal also said the continued inflow of foreign capital, the weaker

dollar, and the recovering Chinese economy had all contributed to the strength

of the yuan, which strengthened to a five-month high of 6.93 against the dollar

yesterday.

     China' cuts to taxes and fees in 2019 have exceeded CNY2 trillion,

amounting to over 2% of GDP, according to a report in the People's Daily. Citing

the State Taxation Administration, the report says the cuts have driven up

annual GDP growth by 0.8 percentage points.

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

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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