China keeps its economy within a reasonable range and takes action to ease commodity prices Reuters

BEIJING (Reuters)-On Tuesday, Premier Li Keqiang stated on a government website that China will maintain its economic operation within a reasonable range in the next 18 months and adopt “comprehensive measures” to ease the rise in commodity prices.

According to the statement, Li Keqiang said in a meeting with economic experts and entrepreneurs on Monday that China will maintain the continuity and stability of its macroeconomic policies and will not adopt flood-like stimulus measures.

The People’s Bank of China said last week that it will reduce the cash reserves that banks must hold and release about 1 trillion yuan ($154.5 billion) of long-term liquidity to support the recovery after COVID-19, which has begun to lose momentum.

Li Keqiang said that the domestic and international environment is still complicated and there are many uncertain and unstable factors.

“In particular, the sharp rise in commodity prices has increased the costs of companies,” he added. “Small, medium and micro enterprises have greater difficulties.”

He did not specify what measures will be taken to alleviate the situation.

As the largest importer of most major commodities in the world, China has repeatedly tried to prevent various price increases from iron ore to coal to ease corporate pressure, including strengthening inspections of trading platforms and releasing national reserves.

Li added that China will oppose monopoly and unfair competition and provide small companies with room for development.

($1 = 6.4731 renminbi)