MNI China Press Digest April 14:Money Policy, LGFV, Decoupling

The following lists highlights from Chinese press reports on Wednesday:

• China should implement structural tax cuts for SMEs as soon as possible and avoid a tightening of credit or allow inflation expectations to rise, said Wang Yiming, a member of the monetary policy committee of the PBOC. In a blogpost published by CF40, Wang said recent rising commodity prices lifted the manufacturing costs of Chinese SMEs and narrowed profit margins. Credit risks of companies and local government financing vehicles are also increasing this year, Wang said.
• Local government financial vehicles (LGFV) which fail to repay debts may be required to file for bankruptcy and liquidate assets and restructure their debt, the 21st Century Business Herald said citing a document from the State Council. A LGFV bankruptcy is however unlikely in the short term, as it risks the region's ability to obtain future financing, the newspaper said citing unidentified market sources.
• China and the U.S. should increase their dialogue and boost cooperation to promote a steady development in relations because decoupling serves no one's interest, Premier Li Keqiang said in a video meeting on Tuesday with a group of U.S. executives. The two sides should manage differences through co-operation, and China will proactively open as a global market and investment destination, Li said in comments reported by Xinhua. U.S. executives, including representatives from Boeing, Qualcomm and Pfizer, urged Li to resume personnel travel and exchange.