MNI China Press Digest, Oct 17: Import, Tax, Monetary Policy

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

on Thursday:

     China is expected to lower import tariffs on some consumer goods to meet

domestic demand, the China Securities Journal reported. Citing Zhao Zhongxiu,

President of Shandong University of Finance and Economics, the Journal report

said tariffs on imported consumer goods could be reduced to around 5% from the

current average of 7.5%, a cut of between 33% to 40%.

     China must implement tax and fee cuts to reduce the tax burden on the

manufacturing, construction and transportation sectors, China's State Council

said during the executive meeting on Wednesday. According to a statement on the

Council's website late Wednesday the government also plans to increase tax

deductions for manufacturers' R&D expenses.

     China's monetary policy goals will focus on stabilizing economic growth,

while inflation is still controllable, the Economic Information Daily said in a

front-page commentary. The newspaper noted that the CPI, which has touched the

government's 3% ceiling, is unlikely to prompt changes in monetary policy.

Dredging the transmission mechanism of monetary policy is the key, along with

lowering the actual interest rate level with the Loan Prime Rate (LPR) pricing

reform, the Daily said.

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

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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