MNI POLICY: China Studying Aid For Companies To Offset Tariffs

     BEIJING(MNI) - China is studying targeted measures to help Chinese and

foreign companies operating in the country to offset the most recent U.S. tariff

action, a Ministry of Commerce spokesman said.

     "We are assessing the impacts of the U.S. tariffs on $200 billion Chinese

exports to the U.S.," Gao Feng told a weekly press conference, mentioning

measures including simplified customs procedures and lower related fees.

     China is also drafting rules to facilitate foreign investment in listed

companies, he said.

     Gao stressed China will not attempt "competitive depreciation" of the

currency and will deepen market-based reform of the foreign exchange market.

     "We will strengthen flexibility of the yuan and maintain the yuan exchange

rate to be basically stable at a reasonable and balanced level," Gao said.

     He said 50% of companies affected by the tariffs would be foreign,

affecting global supply chains.

     China's retaliation measures against the U.S. moves are aimed at defending

free trade as well as the country's own interests, Gao said.

--MNI London Bureau; +44208-865-3829; email: Jason.Webb@marketnews.com

[TOPICS: M$A$$$,M$Q$$$,MGQ$$$]