China will strengthen both supply and demand management to curb "unwarranted" increases in commodity prices and prevent them from being passed on to consumers, the country's cabinet said Wednesday, according to a report by state broadcaster CCTV.
Commodity prices such as steel, iron ore and copper have surged this year on the back of a rebound from a lockdown and reduced liquidity around the world.
China will step up trade and commodity stockpiling adjustments and strengthen checks in both the spot and futures markets, CCTV reported at a cabinet meeting chaired by Prime Minister Li Keqiang.
According to the cabinet, it will severely crack down on malicious trade and vet price-raising behavior.
According to the Cabinet, China will maintain a stable monetary policy and a generally stable RMB exchange rate.
The Cabinet of Ministers said China will help small and micro-enterprises cope with production and operational difficulties amid rising costs.
"(China) will implement tax cuts or tax exemptions for small and micro enterprises ... increase redistribution, reopen credit and direct banks towards increasing lending," state media said in a statement.
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