BEIJING (MNI) - A growing number of policies favoring domestic firms over their foreign rivals are among the obstacles being faced by European companies operating in China, the European Union Chamber of Commerce in China said Thursday.

Optimism about the Chinese economy is "diluted by a growing frustration amongst the business community," President Jacques de Boisseson said in the chamber's annual lobbying report.

BEIJING (MNI) - China should consider introducing stricter policy measures for the property market if prices do not ease, the People's Daily said Tuesday.

The Communist Party mouthpiece said in a commentary piece that current policies introduced in April to prevent speculative buying should remain in place.

"If long-term policies do not have an effect, then China should introduce further measures at an appropriate time," the report said.

BEIJING (MNI) - Stability would be the main direction of macroeconomic policies for the second half of this year, despite ongoing problems at home and abroad, the People's Daily said Monday.

The problems facing the economy in the second half include inflation, Europe's debt problems and sluggish consumption due to record unemployment rates, the Communist Party mouthpiece warned in a frontpage editorial.

But the newspaper said policy should be kept stable nonetheless, citing the threat posed by inflation.

It warned that

BEIJING (MNI) - China's foreign exchange regulator announced on Friday it woulde start a pilot programme under which Chinese companies will be allowed to keep their export revenue overseas.

The State Administration of Foreign Exchange said on its website that the pilot program starts on October 1 and will last for one year in Beijing, Guangdong, Shandong and Jiangsu provinces.

The SAFE said the move is aimed at facilitate foreign trade development.

BEIJING (MNI) - Chinese officials hope a bustling construction site on the southeast edge of Beijing, and many others like it, will soon help them with three of the country's most pressing problems -- a growing wealth gap, low public consumption and a slowing economy.

When it's finished at the end of next year, this 500,000-square-meter development known as The Place will provide low cost housing for 2,700 families who've been shut out of the city's property market by notoriously high sales prices.

BEIJING (MNI) - Chinese economic policy will be oriented towards preventing an economic slowdown, a government adviser said in comments published Monday, ruling out the likelihood of any interest rate or reserve requirement increase this year.

"Given the slowdown in domestic economic growth, macro policy needs to be brought back to preventing a further drop," Li told a conference at the weekend, according to the official China Securities Journal.

"Weak loan demand makes it less possible to raise interest rates or the reserve requirement."

BEIJING (MNI) - China's State Council called on government departments Friday to ease the flow of foreign investment into the country, including allowing foreign companies to issue yuan-denominated bonds, commercial paper and shares.

The government's most senior-decision making body also called for an improvement in foreign exchange settlement for foreign companies.

The list of directives was issued as concerns grow among foreign companies and business groupings in China about a perceived deterioration in operating conditions here.

BEIJING (MNI) - China booked a current account surplus of $70.5 billion in the second quarter of the year, up 30% over the same period of 2009, the State Administration of Foreign Exchange (SAFE) announced Thursday.

China's capital account was in surplus by $11.5 billion during the same period, SAFE said, but did not provide a comparative figure.

The current account surplus included a $59.5 billion surplus in goods while services trade was $6.1 billion in deficit, SAFE said.