REPEAT: MNI: US-China Dispute Not Set For FX War -PBOC Offcl

Repeats Story Initially Transmitted at 11:13 GMT Apr 10/07:13 EST Apr 10

     BEIJING (MNI) - It is unlikely that the trade dispute between China and the

U.S. will extend into a currency or financial war at this stage as it would

trigger a substantial impact on both nations, Bai Chongen, a member of the PBOC

monetary policy committee, told MNI in exclusive comments.

     "I hope the trade war will not expand into such (a currency or financial

war), now I don't see much chance (of that happening) because it would have a

substantial impact on both China and the U.S.," he said.

     According to Bai, China does not need to use such a methods, as it has many

other options.

     "China does not need to make such a choice because we have other choices,"

he said, without expanding what the choices were.

     China and the U.S. remain locked in a trade stand-off, with both parties

threatening to impose trade tariffs on a select list of exports. 

     However, a keynote speech from China's President Xi Jinping on Tuesday has

appeared diffused the situation somewhat, at least for financial markets. 

     Without directly addressing the trade spat with the U.S., Xi touted the

virtues of opening up while reviewing the achievements of China's 40-year reform

programme. Xi said China will continue to champion multilateralism while

shunning self-interestedness and hegemony, and pursue "Chinese-style" free

trade.

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

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