Economy Mar 12

China seeks to stabilize foreign trade, investment

Premier Li Keqiang presides over meeting that seeks ways to rejig and manage business loans 

by Huang Wanyi and Xu Jiangshan
China seeks to stabilize foreign trade and investment
Premier Li Keqiang chaired a top-level meeting on March 10 to try to stabilize trade and industrial production. Photo: Xinhua

(ATF) – Premier Li Keqiang presided over an executive meeting of the State Council on March 10 to determine how to deal with the impact of the Covid-19 epidemic.

Government and party leaders want new measures to stabilize foreign trade and foreign investment, as well as ways to smooth the flow of capital to the industrial sector and reinvigorate work and production.

A report by Xinhua News Agency said the meeting wanted to give better play to the role of special policy to rejig loans with discounts to help control the epidemic, as well as provide relief to boost businesses.

Local governments have issued intensive support policies for the real estate industry on the supply and demand sides to try to deal with the impact of the epidemic, according to the Economic Information Daily.

Money supply still rising: PBOC

Meanwhile, the People's Bank of China released data on March 11 showing that at the end of February, the supply of "broad money" or M2 – cash, checking deposits, and easily convertible near money – was just over 203 trillion yuan (US$29 trillion), an increase of 8.8% over the same period last year.

The growth rate was 0.4 and 0.8 percentage points higher than at the end of last month and the same period last year.

In February, RMB loans increased by 905.7 billion yuan, a rise of 19.9 billion yuan compared with the same month last year.

In other news, income of the construction machinery sector is expected to reach a record high of 660 billion yuan (about US$94.3 billion). China has become a major manufacturer of construction machinery in the world, according to a report by Xinhua.

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