MNI China Press Digest Oct 22: China-EU, Share Price, QFLP

Highlights from Chinese press reports on Wednesday:

• China’s Minister of Commerce Wang Wentao told European Commissioner for Trade and Economic Security Maroš Šefčovič that China remains committed to safeguarding the security and stability of global supply chains and has consistently facilitated the rare earth approval processes for EU enterprises, according to a statement on the ministry's website. During a video conference between the two officials, Wang reiterated China’s firm opposition to the broadening of the concept of “national security” in relation to the Nexperia case in The Netherlands. Both sides agreed to convene a session of the China-EU Export Control Dialogue Mechanism in Brussels as soon as possible.
• U.S. President Donald Trump’s renewed tariff offensive could trigger volatility in China’s A-share market which present a strategic entry point for long-term investors, according to Wu Zhaoyin, chief investment officer at Soochow Futures. Earlier this year, officials introduced the Implementation Plan on Promoting the Entry of Medium- and Long-term Funds into the Market aimed at improving the investment ecosystem and encouraging long-term, value-driven, and rational investment. Investors should clearly differentiate between short-term market pressures and long-term structural opportunities, he said.
• China should introduce new Qualified Foreign Limited Partner (QFLP) regulation given that the mechanism now extends to mezzanine financing, distressed assets and real estate, according to Zhao Bingyin, equity partner at Zhong Lun (Shanghai) Law Firm. Speaking at a Lujiazui Financial Salon focused on deepening QFLP pilot reforms in Shanghai, Zhao said regulators should ease entry requirements for traditional equity investment while maintaining higher thresholds for asset-heavy sectors such as infrastructure and non-performing loans (NPLs). He also called for better alignment between QFLP and emerging initiatives, including real estate private funds and asset securitisation pilots. These improvements, Zhao added, would help ensure that Shanghai remains at the forefront of QFLP innovation nationwide.