Article: China is growing more worried about how surging commodity prices will affect business profits

Article - Media, Publications

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”

Article: China Tries to Temper Rising Commodity Prices

Article - Media, Publications

China Tries to Temper Rising Commodity Prices

Quentin Webb and Stella Yifan Xie, 26 May 2021

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.

Chinese officials, led by Premier Li Keqiang, have stepped up their rhetoric on natural resources since mid-May. The national cabinet, or State Council, which Mr. Li chairs, said last week it would take steps to ensure adequate supply and stable prices for commodities. Continue reading “Article: China Tries to Temper Rising Commodity Prices”