MNI China Press Digest March 27: China-U.S. Trade, Yuan

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

Tuesday:

     U.S. protectionist action such as increasing tariffs on goods from foreign

countries and asking other countries to take measures as it demands makes it

looks like a "destroyer" of the current international trade system, an official

People's Daily said in a commentary. The U.S. bypassed the WTO, and as one of

the main creators of the organization, this is disappointing the world, the

Daily said. The fair trade the U.S. wants is essentially trade that benefits the

US, and other countries don't necessary have to be treated fairly, the

commentary said.

     Chinese Premier Li Keqiang stated on Monday there would be no winners in a

trade war, according to the official Communist Party newspaper People's Daily.

Sino-U.S. trade is essentially a win-win based on market forces, otherwise its

scale could not be so huge, Li said. As for the trade imbalance, the two nations

should maintain rationality, resolve conflicts through negotiations and address

the trade balance through "enlarging the added trade volume," Li said. Li also

stressed China will further reform and open its market, as well as protect

intellectual property.

***Comments: Both China and the U.S. are keen to show their willingness to

negotiate regarding their trade conflicts, with U.S. top officials saying the

two countries are already at the negotiation table. The Trump administration is

expected to continue to place pressure on China and whether China accepts or

continues to retaliate would be key. 

     The yuan is expected to extend its upward trend while fluctuations may

exist, China Securities Journal reported Tuesday. The yuan's close yesterday was

391 pips higher than Friday, the peak since early Feb, said the Journal. A

weaker dollar, which is being dragged down by the Fed's less hawkish stance than

the market expected, and China-U.S. trade conflict escalation, helped with the

yuan strengthening, the report said. The launch of China's yuan-denominated

crude oil futures on Monday also increased demand for the yuan.

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

--MNI Singapore Bureau; +65 8233 2326; email: Asia-Editor@marketnews.com

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