MNI China Press Digest June 11: U.S., Subsidy, Consumption

Highlights from Chinese press reports on Wednesday:

• China and the U.S. have reached a framework in principle for implementing the consensus agreed at the Geneva talks and June 5 heads of state call, said Li Chenggang, international trade negotiator and vice minister of commerce. Li said communication in London was professional, rational, in-depth and candid. (Source: China News Service)
• China’s old-for-new subsidy policy has been suspended or limited in some areas such as Chongqing and Guangzhou, in the lead-up to the June 18 mid-year shopping festival, according to Yicai, which cited information obtained from multiple sources. Industry insiders said authorities want a phased supply of funds and are concerned over excessive low-prices. A senior person in the home appliance industry said the suspension or restrictions came after the scheme exceeded expectations. Another insider said consumers may delay buying until authorities restore the programme.
• China should direct more investment towards consumption to promote corporate innovation, industrial upgrading and release consumer spending, according to Xu Mingzhi, assistant economics professor at Peking University. Xu argued investment can complement consumption to cultivate new market demand and spending scenarios, noting that aging social services and personalised health management have large potential. (Source: Yicai.com)