MNI China Press Digest, Sept 25: China-U.S., Tax Cut

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

on Wednesday:

     China will support Chinese importers in continuing to purchase American

agricultural products including soy beans and pork and will exempt tariffs on

these purchases, Xinhua News Agency reported late Tuesday. China is a large

market for imported high-quality American farm goods, and the Government hopes

the U.S. can work with China to create favourable conditions in the agricultural

and other cooperation, Xinhua said.

     Any decoupling between China and the U.S. is an unrealistic fantasy because

the two countries have become each other's most important trading partners and

their supply chains are deeply integrated, according to the Minister of Foreign

Affairs Wang Yi. Wang's statement, reported on the Ministry website, notes the

strong investment links between the two countries and says that any decoupling

will limit future opportunities.

     China's package of value-added tax reform will buoy GDP growth by 0.181%

this year, create 217,400 jobs, and boost household consumption by 1.413%,

according to the State Taxation Administration. In a statement published on its

website, the Administration cites a report by the Shanghai University of Finance

and Economics which says the VAT tax cut will continue to boost GDP over the

next three years by a total 0.362%.

--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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