MNI China Press Digest, Sep 25: Yuan, Investment, Taiwan

MNI (Beijing) - The following lists highlights from Chinese press reports on Thursday:

The yuan's strength against the dollar will continue to be supported by China's economic fundamentals despite a four-session slide after reaching 6.8 against the greenback, Zhang Qinfeng, a reporter from the China Securities Journal wrote in a commentary. The dollar's status as a safe haven currency may cause it to rebound in the near term, even as the dollar index is set for long-term decline given the easing policies in the U.S., Zhang wrote. The yuan would reflect China's improving economy including rising employment and consumption, its conventional monetary policies and the inflow of foreign capital, according to Zhang.

China's fixed-asset investment in road transportation rose 16.8% y/y to CNY329.8 billion in August, topping 15% for the fifth month, the China Securities Journal reported citing the Ministry of Transport. As the economy further recovers construction of 232 of the largest existing road projects has resumed and passenger volumes are up, the Ministry said.

China's Liberation Army would "surely" respond by taking military action to "liberate" Taiwan should the U.S. install ground forces in Taiwan, the Global Times said. The nationalist tabloid wrote in response to plans proposed in two articles in a U.S. marine periodical, which the Times said sought to create more strategic pressure on China. Such actions would be an "open challenge" to China's sovereignty, the newspaper said. The U.S. is plotting to make Taiwan its main battleground to contain China's rise, the commentary said. China is strong enough today and cannot be matched by Taiwan, the Global Times said.