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MNI China Press Digest, May 13: Sino-U.S., RRR Cut

     BEIJING (MNI) - The following are highlights from Chinese press reports on
Monday:
     Fluctuations in Sino-U.S. economic and trade relations have a limited
impact on the Chinese economy because domestic demand has become the main driver
of economic growth, according to the People's Daily in a front page commentary
today. The paper said that consumption had contributed 76.2% to China's growth
last year. The impact of the trade frictions is generally controllable, the
daily added.
     U.S. domestic retailers, manufacturers and consumers have borne 90% of the
additional tariffs that the U.S government has put on Chinese exports since
August 2018, Xinhua News Agency reported today citing research by the Institute
of World Economics and Politics, CASS. The Xinhua report also quoted a MOFCOM
think tank which claimed that in the latest tariff hikes covering a total of
6081 items valued at $200 billion, there are 1150 items for which the U.S.
relies on China for more than 50% of its imports. Only 124 of the items for
which Chinese exports to the U.S. account for more than 50% of total exports.
The Xinhua report said the U.S. is more reliant on Chinese goods and raising
tariffs will push domestic U.S. prices higher.
     The PBOC is more likely to lower the reserve requirement ratio for
medium-sized commercial banks if it is to use RRR cut to hedge internal and
external risks in the future, said Ming Ming, chief analyst at CITIC Securities
in a report published today. Faced with increasing uncertainty, monetary policy
is unlikely to be loosened significantly but there is room for targeted and
marginal loosening, Ming said.
--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com
--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com
[TOPICS: M$A$$$,M$Q$$$,MI$$$$]

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