MNI China Press Digest Sept 16: U.S. Talks, Economy, SAFE

Highlights from Chinese press reports on Tuesday:

• China and the U.S. have reached a basic framework consensus on addressing TikTok-related issues through cooperative means, reducing investment barriers and advancing bilateral economic and trade cooperation, the Ministry of Commerce announced. He Lifeng, China’s lead representative for economic and trade affairs and vice premier at the State Council, emphasised that China will conduct technology export reviews in accordance with laws and regulations regarding TikTok. He expressed hope that the U.S. will lift restrictive measures against China at the earliest opportunity and take concrete actions to safeguard the hard-won outcome of the talks.
• China’s manufacturing investment growth will likely slow further in H2, as fluctuations in the external trade environment weigh on domestic manufacturing, while “anti-involution” policies curb investment in industries with excess capacity, according to Wang Qing, chief macro analyst at Dongfang Jincheng. Wang projects full-year manufacturing investment growth of around 5.5%, down 3.7 percentage points from 2023. Meanwhile, consumption growth could accelerate from August's 3.4% y/y rise, the lowest level since November 2024, supported by recently introduced childcare subsidies, exemptions from preschool education fee and interest subsidies on personal consumption loans, Wu Chaoming, chief economist at Caitong Securities, told Yicai.
• China will allow foreign-invested firms and investors' legally generated foreign exchange profits to be reinvested domestically, the State Administration of Foreign Exchange (SAFE) announced. The funds may be transferred into the capital account of the invested enterprise and their use must comply with relevant account management regulations, SAFE said.