What’s new: China will keep its economic operations within “a reasonable range” (link in Chinese) in the second half this year and into next year, with a focus on further supporting the real economy and creating jobs, Premier Li Keqiang said.
The government will employ comprehensive measures to take some of the pressure off smaller companies struggling under soaring commodity prices, with an eye on boosting employment, Li said at a meeting Tuesday.
Still, the government won’t “flood” the economy with cash, Li said, repeating the mantra that China will maintain a stable monetary policy.
The background: The central government has become increasingly concerned about rising commodity prices that are cutting into the profits of domestic companies and hampering economic growth.
China will report GDP data for the second quarter of 2021 on Thursday. Analysts expect to see growth return to normal after an 18.3% year-on-year surge in the first quarter that reflected the recovery from the domestic Covid-19 outbreak a year earlier when vast swathes of the Chinese economy were shut down. Growth likely slowed to 8.2% year-on-year (link in Chinese), according to the median estimate of economists at 15 institutions in a Caixin survey.
Related: China Pledges More Support for Trade Even as June Exports Surge
Contact reporter Tang Ziyi (ziyitang@caixin.com)
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