MNI China Press Digest July 9: Trade War, Consumption, Credit

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

Monday:

     The key force behind escalating trade tension between the U.S. and China is

in their competition in technology innovation, especially from China's "China

2025" campaign, reported Financial News. Despite some negative effects of the

trade war on China's high-tech industry, the crisis could become an opportunity

to stimulate innovation and achieve high-quality development of the high-tech

sector, said Dong Ximiao, executive director of the research institute of Heng

Feng Bank, according to the newspaper. China will strengthen independent

innovation and promote industrial upgrading in the next step, said Guo Shuqing,

chairman of the China Banking and Insurance Regulatory Commission, according to

the newspaper.

     China will enhance mechanisms to promote domestic consumption and support

economic development, said Chinese President Xi Jinping, as reported by Xinhua

News Agency. China should work from both the supply and demand sides to tailor

policies to residents' consumption trends and thereby increase national spending

power, Xi noted. China will next focus on cultivating the market segments of key

consumption areas and promoting reasonable consumer expectations, Xi added.

     Aggregate new lending in June may have reached CNY1.95 trillion, reported

China Securities Daily, citing experts. In response to the PBOC's steady and

slightly loose monetary policy, credit growth remained stable in June, with a

small growth from May, said Lian Ping, chief economist of Bank of

Communications, according to the Daily. Investment demands in manufacturing and

real economy were strong in the first five months, supporting a stable credit

growth. The transformation from off-balance sheet financing to in-balance sheet

lending further increases the resilience of credit, according to the Daily.

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

--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com

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