MNI China Press Digest March 28: Kim Jong-un Visit,Liu He,Yuan

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

Wednesday:

     North Korean leader Kim Jong-un has visited China from Sunday to Wednesday,

official Xinhua News Agency reported. In his meeting with Chinese President Xi

Jinping, Kim said the relationship between China and North Korea is unshakable,

and the strategy to advance the relationship with China will not change under

any condition. Kim said denuclearization of the Korean Peninsula is their

unchangeable stance, which "is able to be solved"; - Kim said North Korea is

determined to transform its relations with South Korea into a cooperative

relationship and hold meetings of leaders of both sides, as well as meet with

U.S. officials. Kim said during this negotiation process with South Korea and

the U.S., North Korea will strengthen strategic communication with China. Xi

said further developing the two countries' relation is "the only right choice,"

which will not change because of anything or at any time, and the two sides

should exchange ideas regarding important issues.

     Liu He, China's newly-elected Vice Premier and Chinese President Xi

Jinping's trusted economic advisor said China needs to further deepen reform and

opening of its financial sector based on market rules this year, the official

Xinhua News Agency reported. Preventing and resolving financial risks should be

"priority of all priorities" for financial regulation, Liu said. The

coordination role of the Financial Stability and Development Committee among

different financial regulators needs to be strengthened, Liu said. Monetary

policy needs to remain prudent and neutral;, while maintaining reasonable and

stable liquidity, Liu stressed.

     In the medium to long term, the yuan's outlook still depends on the

fundamentals of the domestic and global economy, Securities Times said in a

front-page commentary. Positive market sentiment and Sheep-Flock Effect may be

the main reason for recent appreciation. China and the U.S. will not make the

same mistake as Japan when it depreciated the yen in an attempt to reduce trade

surplus with the States, both sides may be more likely to negotiate to solve the

problem.

     The U.S. trade deficit with China is the by-product of U.S. dollar being

the world's reserve currency, and is a cost the U.S. has to put up with, said Gu

Xueming, head of the Chinese Academy of International Trade and Economic

Cooperation under the Ministry of Commerce, according to Economic Daily. If

trade conflicts escalate, China may further expand the scope of sanctions of

U.S. agricultural products, as well as retaliate on U.S. aircraft, vehicle, and

integrated circuit products, Gu said. The U.S. action to increase tariffs on

Chinese export of $60 billion in general does not have a big impact on China's

trade, Gu said. China is drafting a guidance to increase imports and enhance the

trade balance, which will be issued soon, he added.

--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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