MNI China Press Digest, Oct 30: Yuan, Trade War, Sino-Brazil

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

Tuesday:

     Chinese currency yuan won't likely depreciate past the key mark of 7

against the U.S. dollar as the People's Bank of China will likely increase its

defense measures following a series of interventions beginning September, the

Economic Information Daily said in a front-page commentary on Tuesday. The

central bank has the "basis, capability and confidence" to keep the yuan

basically balanced, the daily said citing Deputy Governor Pan Gongsheng. While

the yuan has been pressured by bearish factors, trade frictions with the U.S.

and cross-border capital flow can be managed, and the opening up of Chinese

financial markets will draw more capital inflow, the daily said. (Link to the

story: https://bit.ly/2yEuiAy)

     The U.S. accusation of China not being a market economy is unreasonable and

only serves as a pretext to initiate the trade war, the People's Daily said in a

commentary on Tuesday. Eliminating trade imbalance and realizing the so-called

"fair trade" are also the excuse to provoke the trade spat, ultimately curb

China's development and gain greater benefits, the newspaper said. Measures to

contain China's rise will inevitably fail, the daily said. (Link to the story:

https://bit.ly/2z9cZqK)

     The newly-elected Brazilian President Jair Bolsonaro should not copy U.S.

President Donald Trump's trade policies against China, even as Bolsonaro

endorsed Trump's nationalist agenda and emulated his posturing on the campaign

trail, the official English-language China Daily said in an editorial,

responding to concerns Bolsonaro may damage China's interests in Brazil.

Bolsonaro should take an objective and rational look at the bilateral

relationships, and be aware that China is Brazil's largest export market, and

top source of trade surplus, the newspaper said. The cost of "dumping China" can

be backbreaking for the Brazilian economy emerging from its worst recession,

China Daily said. (Link to the story: https://bit.ly/2COEFog)

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

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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