- Chinese Premier Li Keqiang and other leaders emphasized at a meeting Wednesday they would increase support for privately run businesses — first, in the persistent issue of getting financing, and second, for coping with rising prices of raw materials.
- The statement marked the latest central government announcement in the last few weeks on record high commodity prices, as authorities rush to limit the negative impact on the economy.
- "Commodity prices are disconnecting from fundamentals, building up downside risks" for the second half of the year, Morgan Stanley economist Robin Xing and his team said in a report Wednesday.
Workers make a rotary kiln at the workshop of Jiangsu Haijian Stock on May 26, 2021 in an eastern province of China.Zhai Huiyong | Visual China Group | Getty Images
BEIJING — The global surge in commodity prices is adding another burden to China's small businesses, many of which have barely put the coronavirus pandemic behind them.
In a sign of how severe the problem is, Chinese Premier Li Keqiang and other leaders emphasized at a meeting Wednesday they would increase support for privately run businesses — first, in the persistent issue of getting financing, and second, for coping with rising prices of raw materials.
The statement marked the latest central government announcement in the last few weeks on record high commodity prices, as authorities rush to limit the negative impact on the economy.
If businesses selling to consumers keep prices steady in order to remain competitive, the rise in commodity prices will cut into profit margins.
