MNI China Press Digest Dec 14: Easing, Proactive, US Blockade

The following lists highlights from Chinese press reports on Tuesday:

• The PBOC is likely to introduce certain monetary easing early next year to boost growth and switch to moderate tightening if the economy gets stronger in H2, emphasizing a flexible monetary policy, the Economic Information Daily reported citing analysts. There will be a window for RRR cuts and interest rate cuts in 2022 considering the growth pressure, the daily said citing Wen Bin, chief researcher of China Minsheng Bank. Structural monetary policy tools such as carbon emission reduction support and SME refinancing will play an important role next year in guiding credit to areas with potential for quality development, the newspaper said.
• China’s proactive fiscal policy should focus on building green investment momentum through directing fiscal resources and structural monetary policy tools to guide funds to green, low carbon and technological innovation, the Economic Daily reported citing Zeng Gang, deputy director of the National Institution for Finance & Development. The key of proactive fiscal policy next year is to maintain a level of fiscal spending and start infrastructure investment early as well as implement new tax and fee cuts to stabilize the economy, the newspaper said citing Feng Qiaobin, deputy director of the Macroeconomic Research Department of the Development Research Center of the State Council.
• China needs to break the supply-chain blockade that the U.S. and its allies are building that prevents China’s participation in global technological projects, the Global Times said following a media report that the U.S. along with Japan and Australia will fund an undersea communication cable connecting three Pacific countries, after pressuring them to force a Chinese company to scuttle an earlier bid and counter China's influence in the region. China must focus on upgrading its future manufacturing development, link closer with ASEAN manufacturing sectors, consolidate the needs under the RCEP that it helped create, push Belt & Road infrastructure projects and boost assistance to smaller developing countries, said the government-run newspaper.