MNI POLICY: China-US May Ink Deal by June: Fmr PBOC Official

     HAINAN(MNI) - China and the U.S. could reach a final agreement on settling

their trade dispute by the end of June, Hu Xiaolian, a former deputy governor of

the PBOC and now chairwoman of the Export-Import Bank of China, said at the Boao

Forum in southern Hainan province. Here are major points made by Chinese

delegates at the forum on Friday:

     --Any U.S.-China trade deal will only be a starting point to work on deeper

dividing issues, Hu said. A failure to reach a deal may weaken global trade,

slow growth and accelerate a world-wide recession, said Hu.

     -- Rather than speculating over a deadline, it's more important that the

two countries continue negotiating over issues including trade, market access,

intellectual property protection, legal structures and the role of state-owned

enterprises, said Zhu Min, head of Tsinghua PBCSF, a finance school affiliated

with the PBOC, at the forum.

     -- China's deleveraging campaign won't lead to any further slowdown as

accompanying measures, including promoting SOE reform, cutting taxes and fees

for corporations and developing capital market, all support growth, said Hu.

     -- China must ensure enough stable growth to succeed in deleveraging, said

Zhu.

     --China has enough tools to deleverage and manage its overall debt level,

said Xuan Changneng, deputy director of the State Administration of Foreign

Exchange.

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

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

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

--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com

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