Chinese Premier Li Keqiang’s visit to a wheat farm reflects concerns over food and inflation

Chinese Premier Li Keqiang visited a wheat farm in a neighboring province of the capital, highlighting his government’s long-standing concerns about food security and inflation.

Xinhua said Tuesday that Lee had visited a farm in the town of Gaobedin in the northern province of Hebei, emphasizing the importance of harvesting wheat this year. “Everyone should work hard to ensure that we hold the rice bowls of the 1.4 billion Chinese people firmly,” he said.

The outgoing prime minister also said that security of both food and energy needs to be ensured while the government has a balance between controlling Kwid 19 and economic growth, the report said. Visiting an electric company in Zhuozhou City, Li said that this summer’s demand for electricity would require the authorities to “release high coal production capacity”.

Lee said it was important to ensure grain and energy supplies to stabilize overall prices. China has pursued a prudent monetary policy in recent years, and accordingly, it has not printed too much.

“Currently, all major monetary policy indicators are within a normal range,” Lee said. “It’s important to keep room safe for flexible monetary policy implementation to curb inflation and address new challenges.”

The People’s Bank of China has taken a cautious softening approach this year, despite the worst quake outbreak since early 2020. He criticized the widespread easing of counterparts in developed countries in the wake of the epidemic, which has led to a sharp rise in inflation.

The PBOC has refrained from cutting interest rates since January, while relying more on targeted stimulus for small businesses, the property sector and infrastructure projects.

Earlier this month, President Xi Jinping reviewed efforts to increase domestic grain production in Sichuan Province, as Russia’s war is destabilizing global food security. China is one of the world’s largest importers of wheat, which has been particularly affected by President Vladimir Putin’s attack on Ukraine, a major shipment of grain such as barley, corn and wheat.

It persuaded the Asian state-owned stock company to buy freshly harvested wheat for national reserves at record prices this month.

China’s Ministry of Agriculture has recently sent teams to the central and eastern parts of the country because of the extreme heat and lack of rainfall, which could jeopardize summer maize and soybean cultivation. Since June 15, the maximum temperature in Hainan, Hebei and Shandong provinces has been between 35 and 40 degrees Celsius.

This is drying up the soil, which is bad for sowing crops, the ministry said on Sunday. Its staff will ensure that summer fields are managed and planted, helping to benefit from water resources, and that fertilizers are applied against drought.

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