MNI China Press Digest, May 29: Rare Earths, China-US, Housing

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

on Wednesday:

     China, the world's largest producer of rare earths, will primarily serve

its domestic needs and the legitimate demands from other countries, Xinhua

reported today. Citing comments from an unnamed National Development and Reform

Commission official on possible leverage, Xinhua noted the Chinese people would

not allow the U.S. to use exported rare earth materials to suppress China's

development.

     The U.S. has no right to make irresponsible remarks on China's industrial

policy, said Huang Hanquan, a researcher at the government-back think tank

Chinese Academy of Macroeconomic Research, the Economic Daily reported.

Washington has been largely subsidizing its agriculture, high-tech and

manufacturing sectors, so its criticism on China's industrial policy is

hypocritical and bullying of China, Huang added. According to the report, Huang

said China's industrial policy is also in the process of becoming more inclusive

and conducive to fair competition.

     Real estate is not the main driving force for China's high-quality economic

development, and China must stop relying on the property market to prop up

growth, the Economic Information Daily said today. Considering the size of the

real estate sector, the high proportion of family wealth that housing accounts

for, and the large scale of real estate finance, the stability of the housing

market is more important than ever, the newspaper added.

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

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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