MNI China Press Digest March 23: Manufacturing, Russia, Debt

Highlights from Chinese press reports on Thursday:

• China’s manufacturing faces an important juncture in its development as it confronts complex and profound changes domestically and internationally, said China’s Premier Li Qiang. Speaking during a tour of advanced manufacturing, Li said the real economy, especially manufacturing, is the foundation of the economy. Beijing should focus on developing strategic emerging industries and accelerate the transformation of products produced in China into Chinese brands. He said support was needed for high-end manufacturing and the promotion of self-reliance in advanced technology. China should create a market orientated and international business environment based on the rule of law and promote the upgrading of traditional manufacturing, he said. (Source: Yicai)
• Russia and China will expand trade and economic cooperation in traditional industries such as energy and commodities, and also new areas such as finance and technology, according to Yicai. Experts who reviewed statements issued during the recent heads of state summit, expect the two countries to work on developing new financial payment systems and to expand the use of trade using the yuan. There would be more promotion of high-quality economic ties, with trade in digital services a priority. Increased spending on transport infrastructure along the border is also planned, and cooperation on joint industrial chains was a response to decoupling pressure from other countries, according to the experts.
• Evergrande and its creditors have agreed on general principles to restructure its debt, involving original bonds replaced by new bonds with 4 to 12 year maturities and interest rates between 2% to 7.5%, according to Yicai. The company will focus on delivering buildings over the next three years, requiring an additional CNY250 billion to CNY300 billion of financing. Starting from 2026, and assuming the company has resumed normal operations, the plan forecasts the company's annual free cash flow to increase to between CNY110 billion to CNY150 billion up until 2036. The announcement relieved the risk of a Hong Kong court ruling for liquidation, according to Yicai.