MNI China Press Digest May 19: Li Qiang, NAFR, Manufacturing

Highlights from Chinese press reports on Tuesday:

• Government policy will prioritise enhancing confidence in the economic recovery, with more targeted measures to expand domestic demand, according to Li Qiang, China’s Premier. Speaking on a recent tour of Shandong province, Li said the government could boost domestic demand through high-quality supply and establishing more consumption hotspots. He emphasised rural areas needed policy support to increase use of electric vehicles, with more purchase subsidies and charging stations. China’s high quality growth was dependent on developing advanced manufacturing clusters and upgrading traditional industries, he said. (Source: Yicai)
• China has officially opened its new financial super regulator the National Administration of Financial Regulation (NAFR), according to the Securities Daily. Analysts interviewed said authorities can use the NAFR to deepen financial reforms and coordinate macro-control, and supervision. Regulators are now better equipped to supervise fast evolving financial technology and the digital economy, as well as protect consumer rights, the news outlet said. The NAFR will overcome the previous issue of fragmented supervision that led to regulatory vacuums and serve the real economy by eliminating regulatory arbitrage. Vice Premier He Lifeng attended the opening ceremony.
• Manufacturing in China needs more policy support to overcome challenges from slowing exports, low profits and investment, according to an editorial from Yicai. Authorities should prioritise the creation of manufacturing clusters and encourage private investors to invest more by combining investment with public funds. Newer industries such as electric vehicles and solar panels have performed well this year, but more focus is needed on upgrading traditional industries, the paper said. The sector has faced challenges from low-tech labour intensive firms, who have been unwilling to expand investment this year.