As inflation worries circle the globe, Beijing is moving swiftly to protect its factories and workplaces from rising costs (https://www.nytimes.com/2021/06/08/business/economy/china-inflation.html?campaign_id=7&emc=edit_mbae_20210609&instance_id=32511&nl=morning-briefing%3A-asia-edition®i_id=154984297&segment_id=60162&te=1&user_id=edf5f223f84c7e8a3bb2230dac69f5fb) Some of its anti-inflation tools include subsidies for small businesses to pay for commodities and limits on commodities trading to rein in speculation.
The government is discouraging steel makers and coal producers from raising prices and allowing its currency to rise to a value unseen in years. For now, wholesale prices are increasing, and the measures may just slow the rise instead of stopping it. Those rising prices can already be felt throughout the world.
Prices are up in the U.S. and elsewhere for soybeans, napkins and other products, prompting warnings that a wave of inflation could threaten the global economy. For now, Chinese manufacturers, rather than consumers, are feeling the price increases.
