Old Version
Media Focus

Raw Material Price Surge

China Economic Weekly May 30, 2021

By NewsChina Updated Aug.1

After more than half a year of surging raw material prices, a growing number of small- and medium-sized enterprises (SMEs) in the manufacturing sector are struggling to keep their heads above water. Statistics from the Ministry of Industry and Information Technology show that from January to April, the operating income of small and micro enterprises grew by 32.3 percent year-on-year. More than 2,000 manufacturing companies on the A-share stock market have had to offset price surges through raising the price of products and hedging. At a recent executive meeting of the State Council, Chinese Premier Li Keqiang said the central government will adopt a slew of measures to help SMEs tide over the crisis and crack down on illegal hoarding and profiteering. SMEs are the main driving force of the country’s productivity and the main stabilizer of employment. Assisting these enterprises is crucial to reduce vulnerability and ensure steady economic recovery.