MNI China Press Digest April 15: Rates, Commod Rally, Military

The following lists highlights from Chinese press reports on Friday:

• The interest rates for MLF or loan prime rates will remain at current levels as the economic recovery is uneven, reported the Shanghai Securities News citing Yan Se, the chief economist with Founder Securities after the PBOC yesterday renewed maturing MLF but without issuing an additional amount. The restraint, unexpected by the market, was mainly due to sufficient liquidity, said Wang Qing, the chief analyst with Golden Credit Rating. Tightening is also unlikely as CPI won't exceed 3%, a ceiling tolerated by policy makers, in the near future, Wang told the newspaper.
• China has improved the efficiency of using raw materials to the extent that the ongoing commodity rally won't significantly affect consumer prices, the 21st Century Business Herald reported citing Liu Yuanchun, vice president of the Renmin University of China. While the commodity rally isn't over, prices will not surge significantly as demand is not as strong as expected given the slow pace of global recovery. Given the level of demand, supply will catch up, said Liu, who according to the Herald is a well-known advisor to the government.
• China needs to increase its military strength to counter U.S. ambitions for military intervention should it decide to reunify Taiwan by force, the Global Times said in an editorial. China also needs to boost technological development to break the U.S. stranglehold and keep other countries from joining the U.S. anti-China policy, the state-owned newspaper said. China should also stabilize relations with the U.S. and be prepared for a long-term struggle, it said. The U.S. has fixed China as a strategic rival, and such a mindset will last decades, the editorial said.