MNI POLICY: No Surprises Expected From China Econ: Premier Li

     BEIJING (MNI) - Chinese Premier Li Keqiang addressed the press Friday at

the conclusion of the National People's Congress. The following are the key

points.

     --China has lowered its growth target, switching to a range and the goal

for 2019 is 6% to 6.5%, Li noted, saying it sends a signal to the financial

markets that the economy is expected to stay in a stable range.

     --Li confirmed China will cut value-added tax (VAT) for manufacturing,

transport, construction and other sectors on April 1, and also start cutting

social security fees from May 1, with the stimulus seen as a boost to the

economy.

     --China will look to 'market vitality' to overcome the economic slowdown

and resist the use stimulus measures such as quantitative easing and a sharp

increase in the fiscal deficit. The government should continue to promote tax

and fee cuts, relax market access and create a fair business environment, Li

said.

     --The government will make efforts to reduce financing costs of small and

micro enterprises by one percentage point compared to last year's costs.

     --China is capable of preventing systemic financial risks and "zombie

enterprises" which do not meet the conditions for survival should not be given

fresh loans.

     --China's new foreign investment law will see the creation of a new

complaints filing regime and information disclosure mechanism to ensure greater

transparency, aiming to better protect and attract foreign investors.

     --It is both unrealistic and impossible to decouple China and the U.S.,

given that the two economies are so intertwined. The bilateral relationship will

continue to move forward despite disputes.

     --"Sino-U.S. trade friction is a bilateral matter between China and the

U.S. We will not use third parties, nor will we harm third parties," said

Premier Li, when asked if the trade dispute will impact on China-EU relations.

     --Beijing will never order Chinese tech companies to track other countries,

neither foreign governments nor individuals, as it is not in line with Chinese

law, nor the Chinese way of doing things.

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

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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