MNI China Press Digest May 3: Trade Talk, Yuan, WMP Rules

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

Thursday:

     China's stance regarding trade negotiations with the U.S. remains

unchanged: it is open to negotiation, but will fight back if the U.S. insists on

starting a trade war, the official Xinhua News Agency said in a commentary

piece. It is good that the U.S. is sending representatives to negotiate with

Beijing, but they should be sincere and principled, and should obey

international rules, Xinhua said. The U.S. should not demand too much or force

China to make deals; negotiations should be equal and reciprocal, Xinhua said. 

***Comments: U.S. trade representatives led by Treasury Secretary Steven Mnuchin

will arrive in Beijing today to talk to the Chinese government on their trade

conflicts. The U.S. may find it difficult to achieve their goal of reducing the

trade deficit of the two countries, as that is not something China can offer if

it is not aligned with market rules, according to a previous interview MNI did

with a government researcher.

     The yuan is likely to further weaken if the dollar's rally continues, China

Securities Journal reported. The yuan's depreciation after the Labor Day holiday

is a reaction to the dollar's rise over the holiday, said the Journal. The

dollar strengthening was due to the Fed's optimism about the U.S. economic

outlook and inflation, while the euro's relatively weakness can be credited to

the European Central Bank's neutral tone in its April meeting, noted the

Journal, citing unidentified market participants.

     The finalized WMP rules will benefit private equities and will increase

banks' business cooperation with private equities, Security Daily reported.

Previously, private equities were not allowed to cooperate with banks, and they

had to do that through other opaque channels. The finalized WMP rules allow

off-budget capital from banks to be invested in private equities, the Daily

said. The rules also encourage the innovative development of private equities,

the newspaper said.

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

--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com

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