Photographer: Qilai Shen/Bloomberg

Steady Economy Creates Room for Regulation: Eye on Chinese Media

Steady consumer prices show China’s economy has stabilized and gives policy makers more leeway to TIGHTEN REGULATION, the official Xinhua News Agency said. The consumer price index rose 1.2 percent year on year in April, below the government’s annual target of around 3 percent, the report said. China has shifted away from a relatively loose monetary policy that helped lift growth over the past years, gradually guided interbank lending rates higher and tightened supervision on non-performing assets, shadow banking and local government financing. THE CONTEXT: President Xi Jinping’s effort to clamp down on financial risk has roiled Chinese bond and equity markets in recent months.

In Other Reports:

  • DIPLOMACY: Xinhua remembered Qian Qichen, a former vice premier and foreign minister who died Wednesday at the age of 90, as a “time-tested and loyal communist soldier and proletarian revolutionist, and an outstanding leader in diplomacy of the country.” Qian, who was foreign minister from 1988-98, rebuilt relations with the West after China’s crackdown on student-led demonstrations left the nation isolated. The Shanghai-born Qian also served as vice-premier from 1993 to 2003.
  • BELT AND ROAD: State media continued to beat the drum for the week’s inaugural Belt and Road Forum in Beijing, publishing a series of interviews with foreign officials praising the global trade and infrastructure initiative. Ersin Ercin, the Turkish Foreign Ministry’s general director for Asia-Pacific affairs, said his country “discovered China much too late, but we are now narrowing gradually the gap with giving all of our support to this project.” Lebanese Culture Minister Ghattas Khoury said the initiative would “boost the level of economical, cultural and social exchange between the participant countries.” Top Pakistani foreign affairs adviser, Sartaj Aziz, said the China-Pakistan Economic Corridor held a special significance and “should not be viewed in the prism of regional power dynamics.” 
  • TAIWAN: Taiwanese residents are eligible to work for public institutions in six more mainland regions, including Beijing and Guangdong, the People’s Daily reported. They were previously limited to working for hospitals, universities and other institutions in six regions. Taiwan Affairs Office spokesman An Fengshan said the mainland would continue preferential policies for Taiwanese people to increase cooperation.
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