MNI China Press Digest May 15: PBOC, U.S. Trade, MOFCOM

Highlights from Chinese press reports on Thursday:

• The People’s Bank of China is expected to cut the reserve requirement ratio by another 50 basis points later this year, following the 50bp cut on Thursday, Securities Daily reported, citing analysts. Monetary policy will remain relatively loose to support fiscal efforts in 2025, said Li Chao, chief economist at Zheshang Securities, who also expected a 20bp interest rate cut within the year, following the 10bp cut to the policy rate last week.
• Exporting firms have agreed with U.S. buyers to speed up orders, production and shipment during the 90 day temporary suspension of reciprocal tariffs, Yicai.com has reported. Li Mingyang, a general manager at an electric fan firm, said shipping space to the U.S. has become tight, costs have increased and customers are urging shipment. Zhou Nan, secretary-general at the Home Appliance Sector of the China Chamber of Commerce, said the industry was unlikely to set up factories in the U.S. given the high costs and tight labour market.
• China has suspended the addition of 17 U.S. firms added to the unreliable entity list, and the 28 entities placed on the export control list during April for 90 days, the Ministry of Commerce has announced. (Source: People’s Daily)