MNI China Press Digest, May 30: Trade War, FAI, Trusts

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

Wednesday:

     The White House's Announcement on Tuesday night to implement a 25% tariff

on $50 billion worth of Chinese exports, including technology related to "China

Manufacturing 2025", does not suggest the US wants to reopen the trade war but

indicates that the it wants to press China harder to gain more trade benefits,

remarked Global Times on Wednesday. The announcement sent a signal that trade

tensions will be long-term in nature, at least during Trump's term of office,

the remarks said. If the tariffs come into effect, then any agreements reached

before will become invalid, China will fight back and a comprehensive trade war

will begin, the remarks said. China shall not retreat and compromise during the

negotiation as the US will likely raise the pressure if China does so, the

remarks said.

     The National Development and Reform Commission recently published a series

of fixed asset investment plans, and provinces including Liaoning, Guizhou and

others also announced measures that emphasize emerging industries like big data,

information technology and new energy, said Economic Information Daily in a

report on Wednesday. The first four months this year saw slower growth of fixed

asset investment in total but a higher growth of private investment and emerging

industries investment, the report said, citing an anonymous expert. In the

future, infrastructure investment will be relatively stable while investment in

high-tech industries and the high-end agricultural sector will continue to grow,

the expert said, cited by the report.

     China Banking and Insurance Regulatory Commission is examining nationwide

trust companies on their channel businesses, reported China Securities Journal

on Wednesday. There are a number of trust companies that have decided not to

increase their channel businesses this year, the report said, citing a source

working in the industry. Due to regulatory pressure the total scale of the trust

industry shrunk in the first quarter compared with the end of 2017, a source

close to regulators said. As most channel businesses directed funding into the

property sector and local government funding vehicles, cutting channel

businesses will make it more difficult for these sectors to raise funds, the

report said.

--MNI Beijing Bureau; +86 10 85325998; email: he.wei@marketnews.com

--MNI Singapore Bureau; +65 8233 2326; email: Asia-Editor@marketnews.com

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