MNI China Press Digest May 8: China-EU, Investment, ODI

MNI (BEIJING) - Highlights from Chinese press reports on Friday:

• China urged the EU to cease what it called the “stigmatizing” practice of designating China as a “high-risk country” and to abandon what it described as unfair and discriminatory treatment of Chinese products, according to a statement published on the Ministry of Commerce website. Beijing will closely monitor and carefully assess the impact of EU policies on the interests of Chinese enterprises and on China-EU supply chains, and will take measures to safeguard the legitimate rights and interests of Chinese firms, the ministry's spokesman said. The comments came after EU officials suggested prohibiting funding for projects using inverters sourced from “high-risk countries” such as China.
• China’s new round of policy-based financial instruments is expected to be launched as early as the second quarter, with investment increasingly focused on fostering “new quality productive forces” and advancing new urbanisation initiatives, Economic Information Daily reported. China has continued issuing the instruments this year, with the total funding quota reaching CNY800 billion, up CNY300 billion from last year, the report said. All of the CNY800 billion is expected to be fully deployed in the first half of the year amid the need to stabilise investment growth, Wang Qing, chief macro analyst at Golden Credit Rating, told the newspaper. Infrastructure investment is expected to focus on urban renewal projects, including underground pipeline renovations, as well as social welfare projects such as elderly care and childcare facilities, Wang said. Manufacturing investment will also be prioritised, particularly in sectors linked to the digital economy, artificial intelligence, new energy and the low-altitude economy, he added.
• China’s outbound direct investment totaled CNY309.45 billion in Q1, a year-on-year increase of 5.4%, the People’s Daily reported citing data by Ministry of Commerce. Chinese investors made non-financial direct investments in 140 countries and regions, with a total investment of CNY232.86 billion, among which, CNY61.27 billion were made in Belt and Road countries.