MNI China Press Digest Nov 6: CPTPP, Gov Bonds, Consumption

Highlights from Chinese press reports on Monday:

• China will actively pursue joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as it seeks to promote economic globalisation with other countries, according to Premier Li Qiang. Speaking at the International Import Expo in Shanghai on Sunday, Li said China wants to fully participate in WTO reforms, increase stability of global supply chains and deepen the Belt and Road cooperative partnership. At the same time, Beijing strongly opposes unilateralism and protectionism, and will further relax market access and protect the rights for foreign investors in accordance with the law. (Source: Yicai)
• The Ministry of Finance will accelerate the issuance and use of the additional CNY1 trillion government bonds as well as local government special bonds and maintain reasonable spending, Finance Minister Lan Fo'an has said. The ministry will soon release a project budget, and urge local governments to make good use of funds to form a physical workload quickly, said Lan. Authorities will also implement “a basket of plans” to resolve local debt risks actively and steadily. (Source: Xinhua News Agency)
• China should expand government debt and boost credit to drive the growth of financial assets in society which will increase nominal income and help restore consumption in the short term, said Zhang Bin, deputy director of the Institute of World Economics and Politics at the Chinese Academy of Social Sciences. Zhang believes the government increase in public investment stabilises aggregate demand and will not crowd out private investment. (Source: 21st Century Business Herald)