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al environment, China’s monetary policy is expected to sail out of the “reefs” in 2019, becoming more flexible in maintaining its prudent, neutral, and marginally loose stance.
We believe that comprehensive and targeted cuts to reserve req
uirement ratios, reductions in open market rates, and increased use of targeted medium-term l
ending facility will become the main policy tools of China’s central bank in 2019. Only when extreme changes happen in the internal and external env
ironment (for example, the Chinese economy fails to stabilize in the middle of 2019 and the Fed doesn’t raise interest rates),
will the possibility of lowering the benchmark deposit and lending interest rates rise significantly.
hina will take measures to help domestic soybe
an and corn farmers, while also seeking to expand imports of certain agricultural products that are considered in s
hortage through diversified channels, according to a central government guideline released on Tuesday.
The plan, came before a new round of trade negotiations between Chinese and US officials set fo
r Thursday and Friday, shows Chinese policymakers’ determination to be le
ss dependent on US agricultural imports such as soybeans even if a deal is likely to be reached, industry analysts said.
ed from the US are lifted as a result of upcoming bilateral trade talks and China’s decision to resume soybean imports, “the
percentage of US soybeans in China’s total imports could further dwindle in 2019″ as the nation looks for w
ays to avoid further escalation in the weakening economic relationship, Jiao said.
In 2018, China purchased 16.6 million tons of soybeans from the US, about half of 2017’s level of 32.9 million tons and the lowest since 2008
, Reuters reported. Meanwhile, the country is buying more soybeans from Brazil, Argentina and Russia.
In January, relevant departments issued a soybean “rejuvenation” plan, aiming to boos
t soybean cultivation in traditional planting areas including Northeast China, Cent
ral China’s Henan Province, East China’s Anhui and Shandong provinces and Southwest China’s Sichuan Province.
The plan also specified that China will allocate 10 million mu (666,666.7 hectares) of land for soybean planting in 2019.
Chinese analysts hailed the UK’s move to deal with concerns about risks of cooperating with Huawei in 5G through technical measures, and said the UK has
et an example for other European countries on the issue to prevent the effects of the US.
Zhang Chi, a Chinese telecommunications industry observer, said a Huewei offcial in the UK told him that the UK set up a
special testing center composed of working staff from Huawei and technological officials from the UK an
d headed by the latter, which was one of the ways to limit the risk
s of using Huawei mentioned in a Financial Times report on Monday.
“Such a facility runs a thorough, transparent examination of Huawei’s device and operating c
ode, and Huawei products can only enter the UK’s network after passing such tests,” Zhang told the G
lobal Times on Monday, and such a testing system is wh
ere the UK draws confidence from in terms of managing risks.
“In the era of globalization, China will embrace the world with open arms. We also expect the UK to maint
ain its true nature of opening and making wise choices based
on its own interests and work with China to bring more benefits to
the Chinese and British people,” Chinese Foreign Ministry
spokesperson Geng Shuang said at a routine press conference on Monday.