China is growing more worried about how surging commodity prices will affect business profits
Evelyn Cheng, 27 May 2021
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. Continue reading “Article: China is growing more worried about how surging commodity prices will affect business profits”
China is trying to cool red-hot markets for key industrial commodities such as iron ore, seeking to ensure runaway prices for these raw materials don’t hurt the broader post-pandemic recovery.