MNI China Press Digest, July 29: China-U.S., Fiscal, Growth

     BEIJING (MNI) - The following lists highlights from China press reports on

Monday:

     In an apparent sign of goodwill before this week's trade talks in Shanghai,

millions of tons of U.S. soybeans have been shipped to China since the two heads

of state met during the G20 Summit in Osaka, Xinhua News Agency said in a

commentary on Sunday. Xinhua said China will continue to purchase more U.S.

agricultural products, while also urging the U.S. to take stronger actions to

promote the trade talks.

     China is expected to use fiscal policy to drive growth in the second half

of the year, China Securities Journal reported today. Citing several analysts,

the Journal said that previous tax and fee cuts should be implemented in a more

effective way, and the government may consider expanding the quota of local

government special bond issuance from the current CNY2.15 trillion. Another

active measure could be to promote the use of public-private partnerships, the

newspaper said.

     The Chinese economy is likely to decelerate to medium-to-high-speed growth

and growth was unlikely to rebound to prior peaks, said Jiang Xiaojuan, Deputy

Secretary-General of the State Council at a forum on Sunday. The government uses

6% as the lower limit of growth this year, which suggests it will be difficult

to maintain a higher speed. Jiang's comments were reported in an online

publication by the School of Public & Management at Tsinghua University.

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

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

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